Lyft Insurance: New Jersey Requirements

In New Jersey, Lyft drivers are required to have auto insurance that meets the state's minimum coverage requirements. However, most personal auto policies do not cover driving for Lyft. Lyft provides insurance coverage for its drivers, but the amount varies depending on whether the driver is logged into the app and whether they are on a trip. When the app is off, the driver's personal auto insurance coverage applies. When the app is on and the driver is able to receive ride requests, Lyft provides third-party liability insurance for covered accidents if the driver's personal insurance does not apply. When the driver is en route to pick up passengers or during rides, Lyft provides at least $1,000,000 in third-party auto liability coverage in most markets. Lyft also offers contingent comprehensive and collision coverage if the driver has this coverage on their personal auto policy.

Lyft insurance requirements for NJ drivers

Lyft drivers in New Jersey must meet certain insurance requirements to be approved to drive. These requirements vary depending on whether the Lyft app is off, on and awaiting a ride request, or on and en route to pick up passengers or during rides.

Lyft App is Off

When the Lyft app is turned off, meaning the driver is offline and not available to accept ride requests, the driver's own personal auto insurance policy applies. In this case, Lyft's commercial policy does not come into play, and the coverage limits, exclusions, and terms of the driver's personal auto policy will apply.

Lyft App is On and Awaiting a Ride Request

When the Lyft app is turned on, but the driver has not yet accepted a ride request, Lyft provides contingent liability insurance that will apply if the driver's personal auto insurance does not cover the accident. This coverage includes:

• $50,000 per person for bodily injury
• $100,000 per accident for bodily injury
• $25,000 per accident for property damage

Lyft App is On and En Route to Pick Up Passengers or During Rides

When the Lyft app is on and the driver is en route to pick up passengers or during rides, Lyft maintains the following insurance for covered accidents:

• At least $1,000,000 for third-party auto liability coverage (these limits may be lower or not procured in certain markets)
• First-party coverages, which may include uninsured motorist coverage, underinsured motorist coverage, personal injury protection (PIP), medical payments (MedPay), and/or Occupational Accident coverage
• Contingent comprehensive and collision coverage up to the actual cash value of the car ($2,500 deductible) if the driver obtains comprehensive and collision coverage on their personal auto policy

It's important to note that Lyft insurance is primary to the driver's personal auto insurance coverage during this period.

Lyft insurance coverage for NJ drivers

Lyft insurance coverage for New Jersey drivers depends on several factors, including whether the driver is logged into the Lyft app, whether they are available to accept ride requests, and whether they are en route to pick up passengers or have already picked them up.

Lyft Insurance Coverage When the App is Off

If a Lyft driver in New Jersey is driving their vehicle with the Lyft app turned off, their personal auto insurance policy will provide coverage. In this case, Lyft's commercial policy does not apply, and the driver's personal auto policy's coverage limits, exclusions, and terms will apply.

Lyft Insurance Coverage When the App is On and the Driver is Available to Accept Ride Requests

When a Lyft driver in New Jersey is logged into the Lyft app and is available to accept ride requests, Lyft provides contingent liability insurance that covers accidents if the driver's personal auto insurance does not. This coverage includes:

• $50,000 per person for bodily injury
• $100,000 per accident for bodily injury
• $25,000 per accident for property damage

Lyft Insurance Coverage When the Driver is En Route to Pick Up Passengers or During Rides

Once a Lyft driver in New Jersey accepts a ride request and is en route to pick up passengers, Lyft's commercial insurance policy kicks in and remains in effect until the passengers are dropped off. Lyft maintains the following insurance coverage for covered accidents during this period:

• In most markets, at least $1,000,000 for third-party auto liability coverage (these limits may be lower or not procured in some markets)
• First-party coverages, which may include uninsured motorist coverage, underinsured motorist coverage, personal injury protection (PIP), medical payments (MedPay), and/or Occupational Accident coverage
• Contingent comprehensive and collision coverage up to the actual cash value of the car ($2,500 deductible) if the driver has comprehensive and collision coverage on their personal auto policy

Additional Considerations for Lyft Drivers in New Jersey

It is important to note that Lyft drivers in New Jersey are required to maintain current documents, including valid driver's licenses, vehicle registrations, and personal vehicle insurance. Failing to update these documents before their expiration date can result in temporary deactivation.

Additionally, Lyft drivers in New Jersey should be aware of state regulations and city-specific requirements, such as displaying Lyft emblems and placards on their vehicles when in driver mode.

To ensure adequate coverage, Lyft drivers in New Jersey may consider purchasing a rideshare insurance policy or a rideshare endorsement to fill potential gaps in coverage.

Lyft insurance coverage for NJ passengers

Lyft insurance coverage for passengers in New Jersey depends on the driver's status on the app at the time of an accident. Lyft's insurance coverage is divided into three distinct periods, each with its own set of coverages and limitations. Here is a detailed overview of Lyft's insurance coverage for passengers in New Jersey:

Coverage when the Lyft app is off:

If a Lyft driver is driving their vehicle for personal use and the Lyft app is turned off, the driver's personal auto insurance policy will be the primary source of coverage. In this case, Lyft's insurance policy does not apply, and any claims or liabilities arising from accidents will fall under the driver's personal insurance.

Coverage when the Lyft app is on, but the driver has not accepted a ride request:

When the Lyft app is turned on, and the driver is available to receive ride requests, Lyft provides contingent liability insurance. This coverage comes into effect if the driver's personal auto insurance does not cover the accident. Lyft's coverage during this period includes:

• $50,000 per person for bodily injuries
• $100,000 per accident for bodily injuries
• $25,000 per accident for property damage

Coverage when the Lyft driver is en route to pick up passengers or during an active ride:

Once a Lyft driver accepts a ride request or has a passenger in the vehicle, Lyft's insurance coverage becomes primary. During this period, Lyft provides comprehensive insurance coverage for its passengers. Lyft's coverage includes:

• At least $1,000,000 for third-party auto liability coverage in most markets.
• First-party coverages, including uninsured motorist coverage, underinsured motorist coverage, personal injury protection (PIP), medical payments (MedPay), and/or Occupational Accident coverage.
• Contingent comprehensive and collision coverage up to the actual cash value of the car, with a $2,500 deductible, if the driver has comprehensive and collision coverage on their personal auto policy.

In addition to the above coverages, Lyft is required by New Jersey law to carry at least $1,500,000 in insurance coverage for bodily injury, property damage, and death when the Lyft driver is transporting a passenger. The driver must also be provided with a $10,000 in medical payment coverage by the ride-sharing service provider's insurer.

It is important to note that Lyft obtains its insurance coverage through various providers, and the specific insurers and policies may vary from state to state and even within different metropolitan areas within a state. For example, for the 2020/2021 policy period, Lyft was insured in New Jersey through Indian Harbor Insurance Co.

To summarize, Lyft insurance coverage for passengers in New Jersey depends on the driver's status and ranges from contingent liability coverage when the app is on but no ride is accepted, to comprehensive coverage when the driver is en route to pick up or already serving a passenger. Passengers involved in accidents while using Lyft in New Jersey should review the specific circumstances of the incident to understand the applicable insurance coverage and their options for seeking compensation.

Lyft insurance for NJ drivers using a rental car

Lyft insurance for New Jersey drivers using a rental car is a detailed topic that requires a good understanding of the company's insurance policies and the state's regulations. Here is some essential information for anyone considering driving for Lyft in New Jersey, using a rental car:

First and foremost, it is important to understand the different periods of ridesharing driving and how they impact insurance coverage. There are typically three periods:

• The driver is logged into the rideshare app and waiting for a ride request. During this period, rideshare companies provide low-limit coverage, which may not include damage to the driver's car and only offer minimal coverage for injuries or property damage.
• The driver has been matched with a passenger and is on the way to pick them up.
• The passenger is in the car, and the driver is transporting them to their destination.

During periods 2 and 3, rideshare companies provide commercial policies with higher coverage limits. However, these policies may still have higher deductibles than a driver's personal auto policy. Lyft, for example, provides at least $1,000,000 for third-party auto liability coverage during these periods in most markets.

When using a rental car for Lyft in New Jersey, there are specific requirements and considerations to keep in mind:

• Rental vehicles must be obtained through the Express Drive program to be approved for use on the Lyft platform. This program includes standard insurance coverage.
• Lyft drivers must meet the minimum state coverage requirements for auto insurance. It is important to note that most personal auto policies will not cover ridesharing activities.
• 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, and $25,000 per accident for property damage.
• Lyft also provides contingent comprehensive and collision coverage for drivers who have obtained this coverage on their personal auto policies. This coverage is up to the actual cash value of the car with a $2,500 deductible.
• Lyft drivers in New Jersey must be at least 25 years old and have a valid driver's license. They must also pass a driver screening, which includes a review of their driving history and a criminal background check.
• Lyft drivers are required to display the Lyft emblem on their vehicle while in driver mode. This emblem is Lyft's official trade dress and helps passengers and law enforcement identify the vehicle.

In summary, Lyft insurance for New Jersey drivers using a rental car involves a combination of the company's insurance coverage and the driver's personal auto insurance. It is important for drivers to understand the different periods of ridesharing driving and the corresponding insurance coverages to ensure they are fully protected in the event of an accident or incident.

Lyft insurance for NJ drivers with personal insurance

Lyft insurance for New Jersey drivers with personal insurance: what you need to know.

If you're a Lyft driver in New Jersey, it's important to understand how your insurance works, as it can get a little complicated. Here's a detailed guide to help you navigate Lyft insurance as it applies to drivers with personal insurance in the state.

First, let's break down the different scenarios you might encounter as a Lyft driver in New Jersey, as your insurance coverage will depend on your specific situation:

Scenario 1: The Lyft App is Off

In this case, your personal auto insurance coverage applies. If you rented a car through Lyft's Express Drive program, the standard insurance included with the rental car will be applicable. So, if you're not actively using the Lyft app to seek or accept rides, your personal auto insurance or the Express Drive insurance will cover you.

Scenario 2: The Lyft App is On, and You're Able to Receive Ride Requests

Lyft provides 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

Scenario 3: The Lyft App is On, and You're En Route to Pick Up Passengers or Already Have a Passenger

This is where Lyft's commercial insurance policy kicks in. This policy provides higher coverage limits and includes:

• At least $1,000,000 for third-party auto liability coverage (this may be lower in certain markets)
• First-party coverages, such as uninsured motorist coverage, underinsured motorist coverage, personal injury protection (PIP), medical payments (MedPay), and/or Occupational Accident coverage
• Contingent comprehensive and collision coverage up to the actual cash value of the car, with a $2,5000 deductible, if you have comprehensive and collision coverage on your personal auto policy

It's important to note that Lyft's insurance coverage is primary during this period, meaning it takes precedence over your personal auto insurance.

Additional Considerations:

• Insurance Requirements for Lyft Drivers in New Jersey: Lyft drivers in New Jersey are required to maintain auto insurance that meets the minimum state coverage requirements. This typically includes liability coverage, uninsured/underinsured motorist coverage, and personal injury protection (PIP).
• Gaps in Coverage: Keep in mind that your personal auto insurance policy may not cover you while driving for Lyft. To fill these gaps, consider purchasing a rideshare insurance policy or a rideshare endorsement from companies like Plymouth Rock, which offers specific coverage for Lyft drivers in New Jersey.
• Document Requirements: Lyft requires you to provide proof of your personal vehicle insurance, which must include your name and vehicle information (make, model, and VIN).
• New Jersey-Specific Laws: New Jersey has specific laws regarding insurance for ridesharing services. Ridesharing companies are required to carry a minimum of $1,500,000 in insurance coverage for bodily injury, property damage, and death. Additionally, when a ridesharing driver is carrying a passenger, they must be provided with $10,000 in medical payment coverage by the ridesharing company's insurer.

Frequently asked questions