What is Lyft’s Insurance Policy?
One thing is certain, Lyft and other ride-sharing transportation applications were created to provide convenience and make people’s lives easier. While Lyft and other ride-hailing services have done just that, there are also some downsides to the increased popularity of Lyft. Many states across the United States have seen an increase in car accidents.
In case of an accident with a Lyft vehicle, are you entitled to compensation? Generally, you would be able to recover compensation. However, in Kentucky, several factors can affect the level of compensation. Kentucky operates under the “no fault” insurance system, which will impact the recovery of compensation. The rise of ride-hailing companies has led to questions on the liability of ride-sharing companies.
The popularity of Lyft has thrown the insurance system into disorder. This is especially important for states like Kentucky with a “no fault” insurance system. Drivers injured in a car accident, under Kentucky law, must first file a claim with their own insurance. This law is especially important to ride-share drivers.
However, not all insurance companies provide insurance if a driver is operating their vehicle “for hire.” Many insurance companies refuse to provide coverage to privately owned cars that are used as commercial vehicles. This situation is often problematic for Lyft drivers.
Lyft and other ride-hailing companies say that they only provide a platform for drivers and customers. They say that they are not a transportation company and that their drivers are independent contractors. By categorizing Lyft drivers as independent contractors, Lyft is removing itself from being held liable for accidents.
Does the company have any responsibility to pay in the event of an accident involving a Lyft driver? Yes, Lyft does have a responsibility to pay in the event of a Lyft accident. However, attempting to recover compensation from Lyft can be challenging. It is best to consult your case with a Hessig & Pohl Lyft accident attorney.
Lyft offers a $1 million insurance policy to its drivers. That policy, however, has its limits. Moreover, because Lyft drivers are independent contractors, they have to rely on their personal car insurance mostly. The $1 million policy is only active when Lyft drivers have accepted a ride request from a customer until they drop the passenger off at their destination.
However, when Lyft drivers are waiting for ride requests, they are not covered by the $1 million policy. Drivers have to rely on their personal car insurance. Lyft provides coverage of up to $50,000 per person or $100,00 per accident. Lyft’s coverage is secondary, meaning it only goes into effect when the driver’s primary insurance is over its limit.
When Lyft drivers are not accepting rides or their Lyft application is turned off, the $1 million policy is not in play. In case of an accident, a Lyft driver and anyone injured would only be able to look to the Lyft driver’s personal policy.
Hessig & Pohl are highly experienced personal injury attorneys who know how to handle Lyft accidents. Their main concern is making sure you get fair and equitable compensation for the damages and injuries you sustained in the accident. They do not quit until they get justice. Call them today for your free consultation at (502) 777-1111.