Rideshare companies like Uber and Lyft, carry liability insurance to cover their drivers, passengers, and third-parties in the event of an accident. However, there are different types of coverage depending on the facts of the accident. Most major insurance companies offer additional coverage through policies for rideshare drivers in Nevada.
The policy limits offered by Uber and Lyft insurance vary depending on the type of coverage that is activated. There are two types of coverage: contingent and primary. Contingent coverage covers the driver when the app is in “driver mode” (meaning the app is looking for potential rides) but the driver isn’t matched with a rider.
Contingent coverage helps in two ways. First, if the driver’s personal insurance doesn’t offer coverage, then the contingent policy activates. Second, the contingent policy will provide coverage for claims that exceed the driver’s personal policy. Contingent coverage provides drivers with $50,000 for bodily injuries per person, $100,000 limit per accident, and $25,000 for property damage.
Primary coverage is active from when the driver is matched with a rider until the rider is dropped off by the driver. The primary coverage provides $1M in coverage per accident. Uber and Lyft both also offer uninsured motorist coverage.
Additionally, if a passenger or another vehicle is involved in an accident with an Uber or Lyft driver while “driver mode” is off, the driver’s personal insurance is the primary policy. However, depending on the nature of the accident, the driver’s insurer may disallow coverage if it determines that the driver was engaged in a commercial activity which is outside the coverage for a personal insurance policy.
How to Open a Claim
Riders involved in an accident may open a claim with Lyft on the Lyft website. Riders who are injured in an accident with Uber may open a claim on their app under the “riders” tab. Once the claim is opened, the rider will be contacted by the rideshare company for follow-up information. Accident victims should use care when answering questions from the rideshare or insurance company. Furthermore, victims in rideshare accidents should gather their own evidence, take pictures, and take down names of witnesses; independent of the driver. These companies often twist the facts or coerce victims into settling claims for much less than their injuries or other damages are worth.