Jeffrey Wade
Lyft provides insurance for its drivers in California, but it may not cover all situations. When the app is off, your personal auto insurance coverage applies. When the app is on and the driver is waiting for a ride request, Lyft provides third-party liability insurance for covered accidents if your personal insurance does not apply. When the app is on and the driver is en route to pick up passengers, Lyft maintains at least $1,000,000 for third-party auto liability coverage, which also applies when the ride is in progress. Lyft also provides comprehensive and collision coverage in California, but only if the driver has collision coverage on their personal auto insurance policy. Lyft's insurance coverage varies depending on the state and local laws, so it is important to review the specific policies and requirements for California.
| Characteristics | Values |
|---|---|
| Lyft's insurance coverage when the app is off | Personal auto insurance coverage applies |
| Lyft's insurance coverage when the app is on and waiting for a ride request | Third-party liability insurance of at least $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $25,000 per accident for property damage |
| Lyft's insurance coverage when the app is on and drivers are en route to pick up passengers | Third-party auto liability coverage of at least $1,000,000, first-party coverages such as uninsured motorist coverage, underinsured motorist coverage, PIP, MedPay, and/or Occupational Accident coverage, and contingent comprehensive and collision coverage up to the actual cash value of the car ($2,5000 deductible) |
| Lyft's insurance coverage when the app is on and a ride is in progress | Third-party auto liability coverage of at least $1,000,000, first-party coverages such as uninsured motorist coverage, underinsured motorist coverage, PIP, MedPay, and/or Occupational Accident coverage, and contingent comprehensive and collision coverage up to the actual cash value of the car ($2,5000 deductible) |
What You'll Learn
Lyft's third-party liability insurance for covered accidents
Lyft provides third-party liability insurance for covered accidents when the app is on and the driver is waiting for a ride request. This coverage is applicable if the driver's personal insurance does not apply and is subject to certain limits.
The coverage limits for bodily injury are $50,000 per person and $100,000 per accident. For property damage, the coverage limit is $25,000 per accident. It is important to note that these coverage limits are lower in Arizona and Nebraska, with $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $20,000 per accident for property damage, in compliance with state requirements.
In the case of rides in the five boroughs of New York City, Lyft does not provide a primary liability policy, and TLC drivers are responsible for procuring their own insurance.
During Period 2, when the app is on and the driver is en route to pick up passengers, Lyft maintains at least $1,000,000 for third-party auto liability coverage in most markets. However, it is important to note that these limits may be lower or not procured in certain markets, with specific exceptions mentioned for Maryland.
Once the ride is in progress (Period 3), Lyft continues to maintain at least $1,000,000 for third-party auto liability coverage. This coverage includes first-party coverages such as uninsured motorist coverage, underinsured motorist coverage, PIP, MedPay, and/or Occupational Accident coverage.
Lyft's third-party liability insurance acts as the primary coverage from the moment a driver accepts a ride request until the ride ends. This coverage is designed to protect both the driver and their passengers in the event of an incident.
Auto Insurance: Unaffordable for Many
You may want to see also
Lyft's coverage when the app is on and a ride is in progress
Lyft provides insurance coverage for drivers when the app is on and a ride is in progress. This includes at least $1,000,000 in third-party auto liability coverage per accident. This coverage acts as the primary insurance from the time a driver accepts a ride request until the ride ends.
First party coverages may also be included, such as uninsured motorist coverage, underinsured motorist coverage, PIP, MedPay, and/or Occupational Accident coverage. If a driver has comprehensive and collision coverage on their personal auto policy, Lyft maintains contingent comprehensive and collision coverage up to the actual cash value of the car, with a $2,500 deductible.
In California, rideshare companies are required to carry a $1 million liability insurance policy once a driver has been paired with a passenger. Lyft provides this coverage in California, as well as comprehensive and collision coverage, so long as the driver has collision coverage on their personal auto insurance policy. Lyft's deductible in California is $2,500.
Insurance Fronting: Deceiving Vehicle Coverage
You may want to see also
Lyft's coverage when the app is off
Lyft's insurance coverage is divided into three distinct periods. When the app is off, your personal auto insurance coverage applies. This means that if you get into an accident while the Lyft app is off, your personal insurance will be the one that covers any damages or injuries.
In California, personal insurance must meet the state's minimum auto insurance requirements. These include:
- $15,000 bodily injury coverage per person injured in an accident
- $30,000 of bodily injury coverage per accident
- $5,000 of property damage coverage per accident
It's important to note that most personal auto policies will not cover you while you're driving with Lyft. Therefore, it is recommended to consider buying a rideshare insurance policy or a rideshare endorsement for complete coverage whenever you drive.
Lyft also provides coverage when the app is on and waiting for a ride request. During this period, Lyft maintains third-party liability insurance for covered accidents if your personal insurance does not apply. This coverage includes:
- $50,000 per person for bodily injury
- $100,000 per accident for bodily injury
- $25,000 per accident for property damage
Auto-Owners: Your One-Stop Shop for Home and Auto Insurance
You may want to see also
Lyft's contingent comprehensive and collision coverage
The contingent coverage will apply up to the actual cash value of your vehicle or the cost of repair, whichever is less, with a $2,500 deductible. This means that you will have to pay $2,500 out-of-pocket before Lyft's coverage takes effect. It is important to note that this coverage is designed to apply regardless of whether you are at fault or not.
In California, Lyft provides comprehensive and collision coverage as long as you have collision coverage on your personal auto insurance policy. This means that Lyft drivers in California are protected under the company's contingent comprehensive and collision coverage.
Lyft's insurance coverage can be quite complex, and it is important to understand how and when their policies cover you and your passengers in the event of an incident. It is always a good idea to review the specific insurance requirements and coverage details for the state or region in which you are driving.
Gap Insurance: Pre-Tax or Not?
You may want to see also
Lyft's coverage when the app is on and the driver is en route to pick up passengers
Lyft provides insurance coverage for its drivers, but the extent of this coverage varies depending on the driver's location and the period they are in. There are three distinct periods that determine a driver's insurance coverage while driving for Lyft:
Period 1: The app is on, and the driver is waiting for a ride request
During this period, Lyft provides third-party liability insurance for covered accidents if the driver's personal insurance does not apply. The coverage limits are typically $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $25,000 per accident for property damage. However, these limits may vary in certain states, such as Arizona, Nebraska, and Maryland. In New York City, Lyft does not provide a primary liability policy, and TLC drivers must procure their own insurance.
Period 2: The app is on, and the driver is en route to pick up passengers
During this period, Lyft provides higher coverage limits and additional protections. Lyft maintains a minimum of $1,000,000 for third-party auto liability coverage in most markets, but these limits may be lower or not procured in some areas. First-party coverages, including uninsured motorist coverage, underinsured motorist coverage, PIP, MedPay, and Occupational Accident coverage, may also be included. If a driver has comprehensive and collision coverage on their personal auto policy, Lyft provides contingent comprehensive and collision coverage up to the actual cash value of the car, with a $2,500 deductible.
Period 3: The app is on, and the ride is in progress
During this period, Lyft maintains the same insurance coverage as in Period 2. This includes at least $1,000,000 for third-party auto liability coverage, as well as first-party coverages such as uninsured motorist coverage and underinsured motorist coverage. Contingent comprehensive and collision coverage is also provided if the driver has this coverage on their personal auto policy, with a $2,500 deductible.
It is important to note that Lyft's insurance coverage is subject to change and may vary by location. Drivers should review the specific insurance policies and requirements in their area to ensure they have adequate coverage while driving for Lyft. Additionally, while Lyft's insurance provides protection, it is recommended that drivers consider purchasing additional rideshare insurance to fill any coverage gaps and ensure complete financial protection.
Credit Checks: The Auto Insurance Secret Weapon
You may want to see also
Frequently asked questions
Yes, Lyft provides auto coverage insurance in California. However, the coverage varies depending on the period. Period 1 is when the app is on, and the driver is waiting for a ride request. During this period, Lyft provides $50,000 of bodily injury per person, $100,000 of bodily injury coverage per accident, and $25,000 of property damage coverage per accident. Period 2 is when the driver has been matched with a passenger and is on the way to the pickup location. Period 3 is when the passenger is in the car, and this period ends when the passenger is dropped off. During Periods 2 and 3, Lyft offers $1 million of third-party liability coverage, uninsured/underinsured motorist bodily injury coverage, and contingent comprehensive and collision coverage up to the cash value of the car, with a $2,500 deductible.
During Period 1, Lyft provides lower liability limits, and comprehensive and collision coverage are not offered. On the other hand, during Periods 2 and 3, Lyft offers higher liability limits and their contingent comprehensive and collision coverage comes into effect, as long as the driver already has this coverage on their personal policy.
If you get into an accident while driving for Lyft and you only have your personal auto insurance, there may be coverage gaps that result in higher out-of-pocket costs for you. Your personal auto insurance typically only covers your vehicle's personal use and not commercial activities such as ridesharing. Therefore, it is important to have additional coverage, such as rideshare insurance, to ensure you are fully protected.
Purchasing rideshare insurance as a Lyft driver can help fill coverage gaps in Lyft's insurance policy. It provides additional coverage specifically for ridesharing activities, ensuring that you are protected financially in the event of an accident. Without rideshare insurance, you may be responsible for repairs and medical expenses that exceed the limits of Lyft's insurance coverage.
