Rideshare drivers, not passengers or other drivers, face the greatest liability and financial risk in a car accident. A Las Vegas car accident lawyer often sees people who are injured in rideshare accidents while visiting the city.
Rideshare Insurance and Liabilities
Recent surveys show that most rideshare drivers don’t have enough auto insurance coverage to fully protect themselves in an accident. This raises liability concerns for rideshare drivers, as well as other drivers and passengers who use services from popular rideshare companies like Uber and Lyft. According to a recent survey of over 1,000 rideshare drivers, 77 percent only have accident coverage that’s offered by the rideshare company. Uber and Lyft provide up to $1 million in accident coverage, but only if a driver has a passenger in the car or is en route to pick one up.
Passengers who are injured in a rideshare accident are generally covered by the rideshare company’s liability insurance coverage up to $1 million, regardless of who’s at fault for the accident. In serious accidents, where injuries and damages exceed $1 million, passengers can make an injury claim against the rideshare driver’s personal insurance carrier, or file a personal injury lawsuit with a Las Vegas car accident lawyer against the rideshare company.
Rideshare insurance is constantly changing as more consumers use ridesharing services. Companies that provide services offer insurance protection for drivers during specific periods. Uber and Lyft only covers rideshare drivers during Periods 2 and 3, but offers no collision coverage during Period 1, putting drivers at greatest risk of liability in an accident during this period.
- Period 1 – When a driver is waiting for a rideshare request
- Period 2 – Begins when a driver accepts a ride request and is en route to pick up a passenger
- Period 3 – Begins when a passenger gets into a rideshare vehicle
Pedestrians in Las Vegas use ridesharing services frequently, so Nevada now offers drivers personal rideshare insurance with lower deductibles that covers them during Periods 1, 2 and 3. Currently, Uber’s collision deductible is $1,000 and Lyft’s collision deductible is $2,500. Most auto insurance policies do not cover vehicles that are used to transport passengers for a fee. Some will cancel a driver’s coverage if he/she is involved in a rideshare accident and has not informed the insurance company that the car is being used for ridesharing services.