Understanding Lyft’s Liability Insurance Coverage for Its Drivers
Lyft has a multi-layered liability insurance coverage system in place for its drivers. These policies take effect only under specific circumstances. Just because a driver works for Lyft, it does not necessarily mean that Lyft will pay for the damages caused by them.
Primary Automobile Liability Insurance
When a driver is logged into the Lyft app and is available to accept rides but has not yet accepted a ride request, Lyft provides primary automobile liability insurance. This coverage includes up to $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $25,000 per accident for property damage. This coverage applies if the driver’s auto insurance does not provide coverage or if it falls short.
Contingent Liability Coverage
Once a driver accepts a ride request and is en route to pick up the passenger or is actively transporting the passenger, Lyft’s contingent liability coverage takes effect. This coverage provides up to $1,000,000 per accident for third-party liability for bodily injury and property damage. It also covers uninsured or underinsured motorists.
It is important to note that Lyft’s liability insurance coverage takes effect only when the driver is logged into the app. If the driver causes an accident when they are not logged into the app, Lyft will not cover any damages resulting from the accident. You have to file a claim with the driver’s auto insurance provider and recover damages from them.
