Ease and convenience have been the main factors that propelled ride-sharing applications Uber and Lyft into what they are today: dominators of ride-hailing, not only in the United States but also worldwide.
Established in 2012, Lyft currently caters to 23 million passengers in the US, 95% of which think that Lyft rides are safe. The ride-sharing giant also accommodates 1.4 million drivers in the US. On the other hand, since its birth in 2013, Uber crossed the US and established itself as one of the primary ride-sharing options in Asia and Europe.
A study by UCLA’s Institute for Research on Labor and Employment reported that 2 out of 3 ride-sharing drivers rely on driving as their main source of income, while half of them say that driving is their sole work. Four out of 5 drivers want to have their contracts revisited and have access to workers’ compensation and health insurance.
What kind of insurance do Uber and Lyft drivers have?
Since drivers work for long hours a day, safety and insurance policies had been in talks and have been implemented by the two ride-sharing services. For starters, Uber and Lyft require their drivers to have their own car insurance first, before becoming accredited drivers.
The two ride-sharing companies also provide certificates of insurance to their drivers, providing them with a comprehensive insurance policy that depends on certain circumstances.
This is in addition to the three-part insurance plan that both Uber and Lyft provide their drivers and passengers, which notes that drivers that have their Uber or Lyft app turned off while driving is only covered by their own policies. Moreover, drivers who have their app turned on, or on driver mode, but have no passengers are covered by a liability insurance of $100,000. Insurance claims $1,000,000 applies from the moment a driver accepts a passenger ride request until the passenger leaves the vehicle.
Insurance policies vary between these companies as well. Uber has since partnered with Allstate, Farmers Insurance, James River Insurance, and Progressive for their policies. Lyft, on the other hand, has since extended their policy reach to all 50 states, even in Toronto, Canada.
What should a ridesharing driver do after an accident?
- Make sure everyone is safe. Once you have checked yourself for any personal injury, check on your passengers. Depending on how fast you are going, you or your passengers may experience whiplash. Take note of all symptoms or health issues that you and your passengers may have.
- Call 911. Informing a police officer will be beneficial, as they are trained to collect crucial information.
- Collect insurance information. You are required by the ridesharing company to collect insurance information, so make sure to take note or snap a picture of the license plate of the other vehicle, as well as the other driver’s license.
- Document your experience. It is important to record your experience as long as you can still remember all the details. It would help to use a camera or an audio recorder to do this.
- Report the incident to your ridesharing company. Give them a detailed record of the accident. There is a possibility that your account will be temporarily suspended until they are sure that your car is working and safe to be driven around again.
Involved in an accident while riding an Uber or Lyft? Contact us at Hogan Injury for expert legal advice.
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