Do Rideshare Drivers and Companies Have Insurance to Protect Passengers?
Posted in Personal Injury on October 28, 2024
Millions of people use rideshare platforms to get around every day, with more than 17 million trips every day on Uber alone. Ridesharing is a key part of life in California. However, this convenience also leads to more accidents on the road. With so many rideshare drivers, accidents are bound to happen.
Knowing your rights as a rideshare accident victim is important, yet many people don’t know the protections available to them. Our team at Soofer Law Group can help you navigate these policies, along with how they can impact your ability to recover damages in a rideshare incident.
California Insurance Law for Rideshare Drivers
Under California’s Proposition 22, rideshare drivers are classified as independent contractors rather than employees. This distinction is significant because it impacts the liability insurance requirements for these drivers. Unlike employees, who are covered by their employer’s liability insurance during an accident, independent contractors must obtain their own insurance to cover potential liabilities.
California law mandates that rideshare drivers maintain minimum liability coverage, which includes:
- $15,000 for bodily injury per person
- $30,000 for bodily injury per accident
- $5,000 for property damage
If a rideshare driver is found to be at fault for an accident while off the clock, meaning they are not logged into the app and actively working, their personal liability insurance is responsible for covering any damages incurred.
California Insurance Law for Rideshare Companies
While rideshare drivers operate as independent contractors, companies like Uber and Lyft can still be held liable for accidents involving their drivers. To safeguard passengers and other road users, California requires these rideshare companies to also carry insurance.
Per California Assembly Bill No. 2293, rideshare companies are required to:
- Maintain a $1 million insurance policy: This policy must cover personal injury, property damage, and fatalities while the driver is logged into the app.
- Provide $1 million in uninsured and underinsured motorist coverage: This coverage protects passengers in an accident caused by a driver lacking adequate insurance.
- Inform drivers of their insurance coverage: Rideshare companies must ensure their drivers understand the limits of liability and the coverage provided while actively working and using the app.
- Notify drivers about personal auto policies: Drivers must be informed that their insurance may not cover them in the event of an accident. At the same time, they must be logged into the rideshare app.
Soofer Law Group can help you learn more about how these laws work in regards to your personal injury case.
How Does Rideshare Insurance Coverage in California Work?
Rideshare companies operate under specific insurance policies designed to protect drivers and passengers. When a rideshare driver is on the app, they are typically covered by a commercial liability insurance policy.
This policy can provide coverage during different phases of a ride:
1. App On
This is when the driver’s logged into the app but hasn’t accepted a ride request. During this phase, the rideshare company usually provides liability coverage up to $50,000 per person for bodily injury and $100,000 per accident.
2. Ride Accepted
Once the driver accepts a passenger request, their coverage increases significantly. They typically have liability coverage of up to $1 million for bodily injury and property damage, which also applies during the Uber or Lyft ride.
3. Post-Ride
After the ride is completed, the insurance coverage usually reverts to the limits set for the “app on” phase, meaning lower coverage until the driver logs off.
This tiered insurance structure is designed to protect passengers and drivers. Still, passengers should always verify the specifics with the rideshare company to understand the coverage that applies to their situation.
Talk to an Experienced California Rideshare Accident Attorney Today
If you’ve been hurt in an Uber or Lyft accident and are dealing with injuries, don’t wait to get the legal support you deserve. At Soofer Law Group, our experienced team is ready to guide you through the legal process and help secure the compensation you need for your recovery. We understand how challenging this time can be and are committed to standing by your side every step of the way.
Don’t hesitate to reach out to our office for a free case evaluation. Contact Soofer Law Group at (310) 861-4058 or complete our contact form to schedule your free consultation today.