As ride-sharing apps become increasingly prominent, as do ride-sharing accidents. Uber and lift are ride-sharing services that “employ” amateur drivers, or those without commercial licenses and who use their own vehicles, to transport passengers from place to place. The gray area in Uber’s policies creates insurance coverage disputes.
Car accident fault, insurance, and compensation are matter of law. However, while Uber and Lyft drivers carry insurance it ONLY applies when a passengers accept the service. This insurance is often considered secondary to the driver’s personal insurance policy. It is often the case that full commercial insurance can cost up to ten times the amount as personal insurance, which is too costly for most drivers.
Many within the insurance industry warn that Uber and Lyft do not provide drivers with adequate insurance.
Victims of Uber accidents often have difficulty obtaining compensation for their injuries. State governments have varied widely in how they deal with these companies and this confusion results in injured individuals who are unable to obtain adequate compensation. Many drivers remain unaware that they may not have sufficient insurance coverage.
If you are involved in an accident while being transported by Uber or Lyft, hiring an attorney is the optimal way to avoid your claim being denied and your claim being handled properly.