UNDERSTANDING UBER AND LYFT CAR ACCIDENT INSURANCE LAWS

Rideshare services such as Uber and Lyft are becoming increasingly popular. While these services are convenient, the way these companies operate can make it difficult to figure out what kind of insurance is available in the event of an accident. If you are involved in an accident involving a rideshare company, it is important that you understand how insurance works for these services. What is the amount of insurance coverage that Uber drivers have in Texas? It depends.

Driving for Personal Use, Off the Uber Platform

If a rideshare driver is not driving on the rideshare platform and is involved in an accident, the rideshare company’s insurance policy does not cover injuries or property damage caused by the accident, regardless of who is at fault. Any accidents that occur while the driver is not driving for a rideshare company are covered by the driver’s personal insurance policy. In Texas, the minimum amount of liability coverage required is $30,000 per person and $60,000 per accident.

Driving But Not En Route to Pick Up or Drop Off Passenger

If the Uber/Lyft driver has his/her rideshare app on, but is not en route to pick up or drop off a passenger, the rideshare company’s insurance kicks in. This coverage is at the rate of at least $50,000 per person and $100,000 per accident.

Driving for Uber/Lyft on the way to Pick Up and While Passenger is In Car

When a driver is en route to pick up a passenger or has a passenger in the vehicle, the rideshare company is required to have insurance of at least $1 million to cover damages to third parties (including passengers). Rideshare companies Uber and Lyft also maintain $1 million in uninsured/underinsured coverage for all vehicle occupants.

Is this liability coverage enough to cover damages and injuries?

A million dollars may seem like a hefty amount of coverage for an accident. However, keep in mind that this amount is the total coverage for the entire accident, however many passengers are involved. Consider emergency care, medication, continuing medical treatment, long-term effects of the injuries, effects of injuries on work performance and daily life, loss of income for each victim, plus property damage; and you can see how the costs from a single accident can skyrocket to millions of dollars.

Rideshare Accident Attorneys Can Help

Being involved in any type of car accident is stressful and scary, and having to battle with big business and even bigger insurance companies for compensation can seem unbearable. But we can help. The attorneys at the Gutierrez Law Firm have been fighting for accident victims for over 40 years. If you or someone you know has been injured in an accident involving a rideshare driver, contact us for a free consultation. You may reach us at (713) 588-3300 or (361) 664-7377. You may also send an email to info@gutierrezlawfirm.com.