Insurance and Ride-Sharing: What Coverage Applies?
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and Ride-Sharing: What Coverage Applies?

Insurance and
Ride-Sharing: What Coverage Applies?

By: Jason Neufeld
Posted in: Ride-Sharing-Companies

Insurance and ride-sharing can be tricky. While every driver on the road in Florida is required to have personal injury protection (PIP) coverage, those requirements were only extended to drivers who work for ride-sharing services fairly recently. If you are in a Lyft or Uber accident, a ride-sharing attorney in Hollywood can help.

Required Coverage for All Drivers

Every driver in Florida is required to have:

  • $10,000 in personal injury protection (PIP)
  • $10,000 in property damage liability coverage

However, thanks to a relatively new law that was put into effect in July 2017, Lyft and Uber drivers now have to carry additional insurance as well. This insurance varies depending on whether they are actually driving a client or if they are just on their way from or to a job.

Types of Coverage Required for Ride-Sharing Drivers

Uber or Lyft has their own insurance coverage that “kicks in” when a driver is actually going to pick up a client or driving a client. When the app is logged on, but the driver is not on the way to a job or completing a job, their own insurance will apply. Whether a driver is logged on to the app may not matter from Uber or Lyft’s perspective, but it does matter under Florida’s new required insurance laws.

When a driver is logged on, but not providing a ride to anyone, they must have the following minimum coverage amounts:

  • Liability coverage of $50,000 per person and $100,000 per incident
  • Property damage liability coverage of at least $25,000 per incident
  • PIP and uninsured or underinsured coverage as required for all drivers

When a driver is carrying a passenger, the minimum requirements change. The total amount of liability coverage, which includes injury, death, and property damage must be at least $1 million.

Based on these requirements and when specific coverages apply, an Uber or Lyft driver will generally use the company’s provided insurance if a passenger is injured. However, if they are in an accident with another person when they are logged in, but not on the way to a job, then their own personal insurance will likely apply.

Other Requirements for Ride-Sharing Drivers

Companies like Uber and Lyft are also required to perform background checks on their drivers before they are hired. They must also re-do those background checks every three years. Drivers cannot have any of the following convictions:

  • Driving under the influence
  • Reckless driving
  • Hit-and-run
  • Driving with a suspended or revoked license

Drivers also cannot be on the federal sex offender registry. Of course, all drivers must also have a valid driver’s license and register their vehicles with the state as well.

Getting a Hollywood Ride-Sharing Lawyer

If you have been in an accident with a ride-sharing driver, whether you were a passenger, a pedestrian, or in another car, you need to talk to an Uber/Lyft Accident Attorney Hollywood before you speak with an insurance company. Companies like Uber and Lyft spend millions of dollars on insurance, and they will try to decrease costs wherever they can—including in providing you money that you deserve. Call the team at Neufeld, Kleinberg & Pinkiert, PA to get legal back up in these types of cases.