If you suffer an injury due to the negligent actions of a rideshare driver, you may wonder who will pay for your medical costs or other expenses since rideshare drivers are independent contractors and do not work directly for their parent companies. However, this does not mean rideshare drivers do not carry some form of liability coverage.
The personal insurance policies of rideshare drivers may not cover injuries or accidents. In fact, rideshare drivers may lose their policies if they do not inform their insurers that they are rideshare drivers. Still, there are forms of rideshare insurance available. Nerdwallet explains what rideshare insurance is and the types of coverage rideshare drivers may have.
Insurance from rideshare companies
It is true that rideshare companies like Uber and Lyft offers their own insurance policies to their drivers. However, their coverage does not fully kick in until a rideshare driver accepts a passenger request and has passengers in the car. Uber and Lyft insurance may not cover a rideshare driver while the rideshare app is off, or even if the app is on but the driver is waiting for a ride request.
Rideshare insurance
Because of the limitations of rideshare company insurance and personal policy coverage, some rideshare drivers will purchase a hybrid policy from an insurer, frequently known as rideshare insurance. These policies cover rideshare drivers during their personal use of their automobiles and during times drivers have their ridesharing apps on but when insurance from Uber or Lyft does not cover them.
Not all insurers carry rideshare coverage, so there is the chance that a rideshare driver may not carry adequate liability coverage if one should cause injury to you. Since rideshare accidents can turn complicated, the outcome of a liability case will depend on the circumstances involved and the kind of coverage the rideshare driver possesses.