There are a multitude of drivers on New Jersey roads at any given time who are working for Uber or Lyft. Whether you’re a passenger in one of those vehicles when it’s involved in a crash or you’re the other driver, the insurance situation can be confusing.
While rideshare drivers (and their driving records) are screened, they are sometimes at fault for crashes. They and their passengers are also sometimes victims of reckless or negligent drivers. Let’s look at a few basics of how insurance coverage works with rideshare collisions.
Insurance coverage for passengers
The leading rideshare companies (Uber and Lyft) currently have $1 million insurance policies to cover passengers for injuries and property damage suffered in a crash is their driver’s fault. They also provide coverage when another driver is at fault but is uninsured, underinsured or can’t be located (for example, in a hit-and-run crash).
Note, however, that Uber has been spending considerable money to lobby lawmakers in some states (including New Jersey) to lower their insurance requirements. The company says that this would allow them to lower their fares.
Insurance coverage for others injured by rideshare drivers
If you’re a driver or passenger in another vehicle who is the victim of collision where a rideshare driver is at fault, where to turn for insurance coverage depends on the driver’s status at the time. Specifically, were they transporting a passenger, on their way to pick one up or simply available to pick up passengers?
This is just a brief overview of insurance coverage for collisions caused by rideshare drivers. Typically, the rideshare company’s insurance is the first place to turn. However, these companies have the money and manpower to push back on claims where there are any questions of fault. That’s why it can be worthwhile to get experienced legal guidance as early as possible to seek the compensation to which you’re entitled for medical bills and other expenses and damages after a rideshare collision.