Uber and lyft Insurance and liability
In this day and age Uber and Lyft have become the new taxi, the new DD and a new chance to earn some cash on your own schedule. It is an easy to use app and is extremely convenient. You even get to follow a GPS tracker to watch your ride arrive. You know the name of the driver and you know the type of vehicle being driven. The driver picks you up then drops you off and then they are on their way to the next ride.
Yet, what if you did not make it to your stop? What if you were in an accident while in an Uber or Lyft. What then? Who is liable and who is going to be responsible for paying for damages? Will Uber or Lyft cover the injuries?
You would think it was pretty much black and white, right? But, it is not. Since Uber and Lyft do not consider these drivers employees and do not own these vehicles the drivers are considered independent contractors. For this reason the drivers are supposed to be responsible for any damage or harm done due to their own negligence and Uber and Lyft are able to avoid any responsibility for accidents caused by their Independent Drivers.
Quite recently California created a law to help protect ride-share drivers and delivery persons. This law known as AB5 broadens employee classification status as gig workers. There are a few hurdles companies such as Uber and Lyft have to go through to ensure that these “gig workers” are in fact independent contractors. Due to this law, it is harder for companies to hide behind the independent contractor scheme.
Most drivers do not have commercial policies, they have personal policies. These personal policies would exclude coverage when finding out the vehicle is being used for commercial purposes. Due to commercial use vehicles having more of a risk than a personal vehicle. Since the risk is higher the premiums are as well, making it hard to afford.
Uber and Lyft will start coverage where the driver’s personal policy will not. The amount is depending on what phase or period the driver was in when the accident occurred. If a driver contacts their personal insurance company they run the risk of their policy being canceled due to the vehicle being used commercially.
Not so black and white right? This is where hiring an attorney would be a wise choice. There are so many factors in a vehicle accident case and then trying to assume who is responsible and who is going to pay for the damages. Do you go after the driver or Uber and Lyft? Having a well-versed attorney will help you stay on the right track and take you down the right roads to victory.
So, when someone needs to drive for work, they normally need a commercial policy—whose premiums are much higher than those for personal policies. Uber and Lyft drivers would be nicely covered if they bought commercial policies, but the premiums are quite high and few drivers buy such coverage.
Uber and lyft Insurance and liability contact sodhi law group today.
The Sodhi Law Group is a highly successful law firm located in Modesto, California. We specialize in Criminal Defense, Civil Litigation, Personal Injury, Contracts and Transactions, and many other legal services. Jak Sodhi, Ameet Birring, and their team of professionals offer more than 20-plus years of legal experience and over 90% successful court cases since 1999*.
This blog does not create an attorney-client relationship. This blog is legal information and should not be seen as legal advice. You should consult with an attorney before you rely on this information.
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