How Liability Insurance Works for Rideshare Passengers

By Aghabegian & Associates on February 11, 2021

The expansion of ridesharing in recent years has made getting around Los Angeles County much easier for people who don’t want to deal with the hassle of public transportation. However, what legal rights you have when using such a service is rather unclear. If you were injured in a car accident while using a rideshare service like Uber or Lyft, you may be concerned about how you can receive money for your medical bills and who you can hold liable in a claim.

How Rideshare Insurance Works

Given how massive Uber and Lyft have become in California, each company is required by law to have extensive liability policies in place for when drivers are involved in collisions. Recent laws such as AB5 and Prop 22 have certainly made the legal status of rideshare drivers rather confusing, but as far as liability insurance goes, rideshare drivers still have the same policies.

Both Uber and Lyft require rideshare drivers to have their own personal liability policies when driving for one of these companies. Oftentimes, auto insurance companies also require drivers to have commercial insurance policies, which further extend the amount of compensation an accident victim can receive. But, in addition to these minimums, Uber and Lyft have a tiered liability policy that covers anyone involved in a rideshare accident, including other drivers, pedestrians, and rideshare passengers, but only under certain circumstances.

Uber and Lyft’s liability policies provide up to $1 million in compensation for anyone injured by one of their drivers when the driver is in the process of picking up or dropping off a passenger. Outside of that period, only the driver’s insurance policy applies. Uber and Lyft vehicles also have uninsured and underinsured motorist coverage when picking up or dropping off passengers, which will apply when another driver causes a collision.

Understanding Your Options as a Passenger

If you are an injured passenger, the insurance policy that you can file a claim against will vary depending on who is at fault for the accident. If another driver collided with the rideshare vehicle you were in, then you could file a claim against that driver’s policy. If their policy is not enough to cover your injuries, you may also file a claim against Uber or Lyft’s underinsured motorist policy. If the other driver does not have insurance, then you can file a claim with Uber or Lyft’s uninsured motorist policy.

However, if your rideshare driver caused the collision, then you are covered under both their personal auto insurance policy and Lyft or Uber’s policy.

If you have been injured as a passenger, then your first step is to file a claim against the driver’s personal insurance policy and then Uber or Lyft’s if the driver’s policy does not fully cover your injuries. In addition, if you have MedPay through your own insurance company, then this policy may also apply.

Determining which policy to file against after a rideshare accident can be difficult on your own, which is why you should contact a Glendale car accident attorney at Aghabegian & Associates, PC. With over 40 years of combined experience, we can advocate for the maximum compensation for your injuries. If you contact us after an accident, we will review all available insurance policies and represent you throughout the entire claims process. To get started, call our office at (818) 507-4311 and schedule a free consultation.