LYFT and several other ridesharing services have revolutionized the way that they move around a few of the world’s biggest metropolitan areas. The mobile application that is utilized for these services make requesting ride convenient, and the main fact that the cost is widely lower than usual taxis have skyrocketed their fame. Unfortunately, several people also mistakenly believe that these rides are safer, and that might not always be the case.
Is Ride Sharing Services Safe?
When you accept a ride via LYFT, you are essentially jumping into an individual car with a stranger. While the services might claim that they have done some background checks and motor car history screening, the fact remains that there are not essential drivers who’ve years of skill on the road. As an outcome, a car accident can and do happen. Now, it is time for compensation. Here you find some key things you need know before start compensation process:
Individual Auto Insurance Policies Don’t Cover Lyft Accident Victims
If you have been involved LYFT accident in the past, you know the getting the compensation you deserve can be really stressful. The most vital thing that people need to know about this ridesharing service is that almost all personal car insurance policies held by the driver will deny claims if the car driver responsible for the accidents is operating as a rideshare service provider at the moment of the accident.
That is because; personal car insurance laws policies almost always keep a clause that negates coverage. If the car is being used for hire, or if the car driver is advantaging commercially from the ride, these provisions are included to limit an insurance firm’s liability in the event that LYFT driver reasons an accident. In short, it is money-saving tactic that can leave car drivers in a solid spot should they be found by mistake.
Commercial and Rideshare Insurance Policies are Available for Compensation in Lyft Accidents
That does not matter that the company does not offer coverage to these drivers. In fact, according to LSC Law Firm, all but 1 state and the District of Columbia have insurance firms which offer ride sharing coverage. While these policy add-ons are not common knowledge, they are fairly simple to get – you simply ask.
Commercial insurance policies are also availed which will cover in, for hire examples. Though, most drivers would not need such a policy unless they use LYFT or one of their competitors as a full-time money-making plan.
So if further insurance is readily available, why do not more LYFT drivers have these insurance add-ons to protect people hit by a LYFT car? It often comes down to expense. Drivers normally opt for the least costly choice when selecting car insurance. That can be worst news for them if they get an accident.
Rideshare Insurance Offered by Lyft
Form a rider’s perspective, is normally not much of one. Competitor and LYFT Apps offer same services with extremely little difference in price. Though, there’re some differences when it comes to how insurance firms handle LYFT accident compensation. But before we get into the deep, it helps to know how LYFT services view your ride.
Rideshare Driving Periods are essential to Note in Case of a Lyft Accident
Lyft breakdown every single ride into 3 driving periods.
- Starts when the rideshare driver turns on the application and end when the driver actually accepts request from a passenger.
- Starts when a driver accepts a request form a passenger and end when they really pick up the passenger.
- Starts the 2nd the passenger enters the vehicle and ends the movement they leave.
Next, let us take a deep look at how the insurance offered by LYFT service view the ride.
Lyft Accident Insurance
Accident insurance coverage is extremely the same to others in almost every aspect.
LYFT’s coverage offers contingent accountability coverage while drier is awaiting a ride request with application open. Though, it is vital to note that this LYFT accident insurance will just pay if the driver’s individual car insurance policy doesn’t offer this coverage. Limitation amounts are similar to other companies (50,000 USD each person/100,000 each LYFT accident).
Once period two starts and until period three ends, LYFT insurance will pay up to one million USD per accident. This one million USD policy contains main car auto liability, contingent comprehensive and accident and underinsured/insured motorist insurance.
It is vital to note that LYFT insurance just covers as a primary policy if the driver:
- Doesn’t have an individual auto insurance policy which covers their car for commercial utilize
- Has a car insurance policy that offers less than one million USD in coverage.