As more and more people across California rely on ridesharing services like Uber and Lyft, understanding their impact on the road becomes increasingly important. As a rider, Money magazine explains, you will be covered for damages up to $1 million, and if you collide with an Uber or Lyft driver, the insurance claims process is the same as it is if you were in an accident with anyone else. For drivers who use ridesharing apps, things are not as cut and dry.
For those who make their living picking up rides, or just use it for some cash on the side, it is extremely important to confirm the correct insurance coverage so they are not exposed to an incredible amount of risk. There are several different levels of liability that need to be covered outside of insurance for day-to-day life. First, anytime a driver has accepted and is on the way to pick up a rideshare passenger or has one in the car, Lyft and Uber have both liability and collision insurance protecting the ride. When the app is on, but the driver has not been assigned a passenger, this is more of a gray area, and the Uber and Lyft insurance doesn’t provide collision coverage during this period at all. They do provide limited liability coverage of up to $100,000 per accident.
As the New Yorker reports, California law changed in 2014 requiring more stringent insurance for ridesharing drivers after an Uber driver hit a pedestrian while the app was on but a ride had not yet been accepted.