Rideshare arrangements can be very convenient. You can get a little wild at your class reunion or at a friend’s bachelor party without worrying about hurting yourself later. You can get from the airport to your hotel while visiting another city without the hassle of a rental car.
Anytime you don’t have a vehicle available to you, opening your Uber or Lyft app to order a ride can be a fast and cost-effective solution. Unfortunately, there could be a bit of confusion about insurance and compensation if a crash occurs while you were a passenger in an Uber or Lyft vehicle.
After all, the vehicle doesn’t belong to the company, but rather to the contractor driving the vehicle. They may not even be the one at fault for the wreck. What kind of insurance will cover you after a rideshare collision?
The companies carry commercial policies
The major rideshare companies have commercial liability insurance that applies to those en route on an app-ordered ride. Provided that the driver’s app is open and operational in the crash occurs, injured passengers can potentially make a claim against the large policies. There are robust policies carried both by Uber and by Lyft.
Occasionally, the rideshare driver may have failed to start the ride or may have already ended the ride when the crash occurs. At that point, the passenger may be dependent on the insurance policy of the driver or of the person at fault for the wreck. They can only claim as much as the policy limit for the driver at fault for the crash, and it may not be enough for their needs.
Contractors may not have the right insurance
People who use their personal vehicles for rideshare purposes typically need to inform their insurance companies of that practice and will have to pay more for coverage. If they don’t have the appropriate insurance and you try to make a claim, it may prove more difficult than you expect.
Especially if you suffered significant injuries or major property damage losses in the collision involving a rideshare vehicle, you may need professional help to get full compensation. Learning more about how insurance works after a motor vehicle collision can help you connect with the appropriate resources after a crash.