How Does Rideshare Insurance Coverage Work?
Utilizing a rideshare vehicle is supposed to be a safe way to travel, but accidents happen with rideshare vehicles more often than most people realize. At Mitch Grissim & Associates, we are here to help after an accident with a rideshare vehicle. To learn more about compensation for your claims, talk to our office in Nashville today.
Personal Auto Insurance Coverage
Drivers for rideshare companies, also known as transportation network companies, like Uber and Lyft are required to carry their own personal auto insurance when they are behind the wheel. This insurance policy covers the driver when they are involved in an accident but not engaged as a rideshare driver at the time.
Standard auto coverage in Tennessee does not offer policies for when drivers are operating for a rideshare company but may make coverage available for an additional premium. This is particularly important for the period of time when a driver logs into their application for ridesharing but has not yet matched with a passenger. This gap is not covered by either standard auto insurance or the rideshare company’s insurance policy, which means that if an accident occurs during this period the driver might be held personally liable for any damages that result from an accident if they do not opt for the additional coverage.
Rideshare Company Insurance Coverage
The rideshare companies like Uber and Lyft also carry insurance coverage for their drivers. This policy covers the periods when the driver has made and accepted a ride with a passenger who is not yet in the vehicle and when the passenger has been picked up and in the driver’s vehicle. If an accident occurs during these periods, the driver’s personal auto insurance policy first covers the claim. However, if the damages caused by the accident exceed the driver’s personal policy, the rideshare company’s insurance policy kicks in. Companies like Uber and Lyft carry policies up to one million dollars to cover any additional damages for victims injured in ridesharing accidents.
Effects on Injury Victims
Understanding how the insurance coverage works for rideshare drivers is important for victims in ridesharing accidents, as it can result in a substantial difference in compensation. When the accident occurs contributes significantly to the amount of insurance coverage available for injury victims to utilize when being compensated for their injuries. However, it can also affect other aspects of a personal injury claim, as well.
When the rideshare company’s insurance coverage is involved, that also means dealing with the company’s lawyers and insurance adjusters. You need an experienced rideshare accident attorney handling your case to ensure that you receive full and fair compensation for your claim. These people will often try and minimize or eliminate claims to the larger policy in order to save the rideshare company as much money as possible, which can include trying to downplay the extent of a victim’s injuries or trick them into admitting some level of fault in the accident.
Talk to Our Office Today
If you or someone you know has been injured in an accident with a rideshare vehicle, is it important that they speak with an experienced Nashville personal injury attorney about their case right away. To learn more, call the office or contact us today at Mitch Grissim & Associates to schedule a free consultation.
Resource:
tn.gov/commerce/news/2017/4/28/tdci-ridesharing-drivers-should-check-insurance-coverage-for-gap.html
