Are Uber and Lyft Drivers Required to Carry Special Insurance in NYC?

Rideshare companies like Lyft or Uber have become a popular side-job for many people throughout New York City. These companies rival taxi cabs based on their convenience and cost.

As the demand for rideshare drivers has grown, the number of accidents has also risen. Because of the risk of injury not only to other drivers but passengers as well, there are additional insurance requirements that apply to Uber and Lyft drivers in New York City.

Understanding what insurance policies might apply to your accident claim is challenging without the guidance of a seasoned attorney. Reach out to an NYC Uber accident lawyer at Douglas and London to learn more.

How Uber accident insurance works

The process for determining whether an Uber or Lyft insurance policy is in effect after an accident is complex. When a rideshare driver is traveling with a passenger in their car, they enjoy the full coverage of Uber or Lyft’s liability insurance policies. These policies carry up to $1.25 million in liability coverage. It also includes as much as $1.25 million in uninsured or underinsured motorist coverage.

Rideshare company policies also apply when their drivers are actively using the mobile app to find prospective passengers. However, the maximum benefits available are much lower if there weren’t any passengers in the vehicle at the time of the crash.

Neither Uber nor Lyft provides liability coverage to drivers who were not actively using the rideshare app at the time of the crash. In these situations, the driver must rely on their own liability coverage if they are responsible for an accident.

Personal insurance policies are not adequate for Uber drivers in NYC

In most places, rideshare drivers face the same liability insurance requirements as any other motorist. This typically involves a relatively low policy limit for any bodily injury or personal property claims.

This is not the case for rideshare drivers in New York City. NYC Uber and Lyft drivers must purchase special commercial insurance coverage to operate a rideshare vehicle in the city. Most rideshare drivers must carry at least $100,000 in liability insurance for bodily injuries. In total, these policies must also cover up to $300,000 in bodily injuries for the entire accident. The city also requires at least $10,000 in property damage coverage per accident.

Most insurance companies consider rideshare driving a commercial activity outside of the scope of a personal insurance policy. These insurers require an additional rider on a policy to cover accidents for drivers working as rideshare operators.

In some cases, the insurance company could deny liability coverage for a negligent rideshare operator. If you find yourself facing a denied claim after an accident, we can help. Your NYC Lyft accident lawyer can investigate your claim and identify any insurance policies that could apply. Alternatively, they could pursue legal action directly against the negligent Uber or Lyft driver.

Contact us for a free consultation

If you are ready to recover compensation following an accident with a rideshare driver, the attorneys of Douglas & London can help. We can explain the complex process used to determine what insurance coverage might apply in your case. If needed, we can also file a lawsuit on your behalf. To learn more about how we can help, schedule a free consultation with New York City personal injury lawyers right away.