uber lyft are you safe?

Whether they’re transporting passengers, food, or groceries, rideshare drivers are on the road 24/7. As of January 2021, Uber reported 3.5 million drivers in its 2021 Investor Presentation. While Uber, Lyft and Instacart save many of us time, they do a horrible job of educating and protecting their drivers. Most rideshare drivers have no clue there may not be coverage to compensate them in the event they are in a car accident and injured.

Uber, Lyft & Instacart Drivers Need to Make Sure They Have Coverage.

Unfortunately, many rideshare drivers do not realize they are not protected when it comes to auto coverage after a car accident. If someone hits an Uber driver, Lyft driver, or Instacart driver while they’re active on the app if the at-fault party does not have bodily injury (BI) liability coverage AND the Uber, Lyft or Instacart driver does not have a commercial policy or rideshare coverage with Uninsured/Underinsured Motorist (UM) coverage, there may not be any coverage available to compensate the Uber, Lyft or Instacart driver for their injuries, wage loss, and other damages. Uber, Lyft and Instacart do NOT carry UM coverage on their policies for their drivers.

Uber, Lyft & Instacart Only Have Coverage to Compensate the Other Party When the Rideshare Driver Causes a Car Accident. 

Uber and Lyft both have bodily injury (BI) liability coverage to protect itself and its drivers from liability when they are at-fault for the car accident. But if the Uber, Lyft or Instacart driver is NOT at-fault, none of these rideshare companies carry Uninsured/Underinsured Motorist (UM) coverage on their auto policies to protect their drivers if someone hits them. Most rideshare drivers believe they are covered and often do not realize there’s no coverage until they’re involved in a car accident and it’s too late. When an Uber driver, or Lyft driver, or Instacart driver is involved in a car accident, if they do not have the right personal auto policy or rideshare coverage, their personal auto insurance company will typically deny coverage or rescind their policies for misrepresentation. When an Uber, Lyft or Instacart driver is involved in an accident, there may NOT be any coverage for them to pursue for their injuries if they do NOT have the correct auto insurance policy to cover them while performing their rideshare services.

Uber & Lyft Have Collision Coverage to Assist with Damages to the Uber or Lyft Driver’s Vehicle BUT the Deductible is HIGH.

When a Uber, Lyft or Instacart driver is involved in an accident and their vehicle is damaged in the car crash, they may find themselves at a loss when it comes to their property damage claim. This is because they risk the possibility of being forced to go through the Uber or Lyft policy for repairs when: 

1) the Uber, Instacart or Lyft driver is at-fault and does not have coverage on their personal auto policy, or

2) the at-fault party does not have an active policy, or 

3) the at-fault party does not have enough property damage (PD) coverage to pay for all damages, or 

4) the Uber, Lyft or Instacart driver is not covered under the personal auto policy when performing rideshare services and coverage is denied, or

5) the Uber, Lyft or Instacart driver does not have collision coverage on their auto policy.

Uber and Lyft’s auto policies typically have a $2,500 collision deductible. This means if the Uber or Lyft driver has to go through Uber or Lyft’s policy for their property damage claim, they may have to pay $2,500 out-of-pocket towards the repairs or if their vehicle is totaled, the fair market value (FMV) paid out for the total loss will be reduced by $2,500 right off the top.

Review Your Policies – Make Sure You Have Coverage

Rideshare drivers should review their auto insurance policies and make sure their policies cover them while they are on active on any rideshare app for Uber, Lyft or Instacart. They should also make sure they carry Uninsured/Underinsured Motorist (UM) coverage. UM coverage provides an extra layer of protection and ensures there is coverage to go after in the event you are hit by someone while driving and their bodily injury (BI) liability coverage is insufficient to fully compensate you OR they do NOT have ANY BI coverage. If you have the right auto policy AND UM coverage, this will ensure there is coverage to go after if someone hits you while driving and active on the rideshare app. Lastly, you should also check your policy to make sure you have collision coverage.

Stay safe and make sure you’re protected!