When does rideshare insurance cover an auto accident?

On Behalf of | Nov 19, 2021 | Car Accidents

An automobile accident may become more complicated if a rideshare driver is responsible for damaging your car and inflicting injury on you. You may wonder if rideshare drivers have their own insurance provided by a rideshare company. You should also know whether or not the rideshare insurance will cover your damages and injuries.

Rideshare companies like Uber and Lyft do provide coverage for their drivers in the event they cause an accident. However, Bankrate explains that rideshare insurance is not always active. Certain timing will dictate whether or not a rideshare company’s insurance will pay for your damages.

Turning on a rideshare app

The fact that a rideshare driver is operating a vehicle does not mean that the rideshare insurance is active. Rideshare drivers switch on their apps when they begin their services. Their rideshare coverage is not in effect if the app is not on. In the event they get into an auto collision with the app off, they have to cover damages using their personal liability policy.

Rideshare app periods

Rideshare apps have four different periods or phases. During period zero, the driver’s app is off, so the driver does not receive coverage. In period one, the driver only receives liability coverage since the driver is only waiting for a passenger match and has not taken a ride yet.

During period two, the driver is on the way to pick up a passenger. In period three, the passenger has boarded the vehicle. During these two periods, the rideshare driver is active and thus receives full rideshare coverage.

Mandatory minimum liabilities

Remember that California law necessitates that all drivers have certain amounts of minimum liability coverage, such as $15,000 for one person’s injury or death in a single accident or $30,000 in case multiple persons suffer injury or death. So rideshare drivers should possess some kind of liability regardless of whether they have switched on a rideshare app or not.

Still, you should know if a rideshare company’s insurance applies to your accident. If the driver was engaging in rideshare services at the time of your accident, you will know to contact the rideshare’s insurer to file a claim.