You’re done with work, the party has ended, or an event is closing. You’re on the Uber or Lyft app trying to grab a seat before everyone else does or before the prices decides to increase. Once you grab a spot, you and your friends enter the vehicle with no worries — believing that it’s a smooth ride home. In spite of the past 4-star drivers, this ride accidentally crashes into another car. Everyone is okay, but the car is scratched and the other one has a dent. What do you do now? Are you part of the situation, or can you walk away?
Unfortunately, since you are the passenger, you are part of the situation. There’s a possibility that you will get a call from the insurance from one of the drivers. Why? It’s protocol. But what happens if something worse comes along? What happens if you’re injured?
You have to keep in mind that ride-sharing companies such as Uber and Lyft do not consider themselves as the driver’s employer. Instead, drivers in these services are known to be independent. In order to be listed as a ride-sharing driver, you have to have your own insurance. Uber and Lyft just offer the platform for users. It would be difficult to sue one of these companies since the driver and the actual company are apart. The good news is that both Uber and Lyft offer a $1 million liability.
When an accident is at hand, these companies assume that the at-fault driver does not have enough money to cover the expenses. If it’s another motorist’s fault, then their insurance come into play first – before going through one of these companies. If you are not a passenger but get into an accident with the driver on duty, it will depend on your state policies to see if you can be covered under the liability (depending whose fault it is). Uber provides coverages for damages by the driver, collision and comprehensive policies, plus the rider – if injured. Lyft provides coverage for damages as well as collision and comprehensive personnel policies. Most of the time, the ride-sharing insurance would cover an on-duty drive. However, if the driver is not engaged with the app-providing services, they would have to go through their own personal insurance.