A Breakdown Of The Insurance Tiers Used By Rideshare Companies

Rideshare services are part of everyday life in Miami. They’re convenient, affordable, and often simpler than navigating traffic or searching for parking. But when a rideshare trip ends in a crash, things get complicated quickly. Unlike a typical car accident where one driver’s insurance usually applies, rideshare companies use tiered insurance coverage.

Knowing how these tiers work can make a big difference in determining who’s responsible for your injuries and how your claim will be settled. With the legal guidance from a Miami personal injury lawyer, you can make sure your injuries are taken seriously and your claim is handled fairly.

The Three Insurance Tiers

Uber and Lyft provide insurance coverage for their drivers, but it’s not the same in every situation. Coverage depends on what the driver was doing when the crash occurred. For instance, if the driver’s app is turned off, they are considered off duty. In this situation, their personal auto insurance applies, just as if they weren’t driving for Uber or Lyft at all.

But sometimes the driver has the app on and is waiting for a ride. Then, the rideshare company provides limited liability coverage, $50,000 per person for bodily injury and $25,000 for property damage. This tier often creates disputes because the coverage is limited and only applies if the driver’s personal insurance denies the claim.

Once the driver accepts a ride request and is on the way to pick up a passenger (or already has a passenger in the car) the highest level of coverage applies. $1 million in liability coverage for injuries and property damage could be activated.

Why the Tiers Matter for Your Claim

Consider these examples:

• Scenario 1: You’re hit by a rideshare driver whose app was turned off. In this case, you’re filing a claim against their personal insurance, just like any other car crash. Uber or Lyft’s policies won’t apply.
• Scenario 2: You’re injured by a driver who had the app on but no passenger. The rideshare company’s limited coverage might apply, but it may not be enough to cover serious injuries like broken bones or spinal damage.
• Scenario 3: You’re a paying passenger in an Uber or Lyft that crashes. In this situation, the $1 million policy is in play, giving you much greater access to coverage for medical bills, lost wages, and other damages.

Insurance companies rarely make things easy. Personal insurers may try to deny coverage by arguing the driver was working, while rideshare insurers may argue their driver was not yet fully engaged in a trip. These disputes can leave injured victims stuck in the middle.

An experienced Miami personal injury lawyer can help. By investigating app data, trip records, and the timing of the crash, your lawyer can determine which insurance tier applies and fight to maximize the compensation you receive.

Are you recovering from harm sustained in an Uber or Lyft accident? Uber and Lyft’s tiered insurance policies can protect victims, but only if the right tier is applied. Talk to the attorneys at Spencer Morgan Law, call 305-423-3800 to book a confidential consultation.