Understanding Rideshare Insurance Coverage in Salt Lake City

Our team understands the challenges you’re facing and is ready to help you through every step of the legal process. Don’t face the complexities of a rideshare accident claim alone. Reach out to us now for a free case review.

When you’re involved in a rideshare accident in Salt Lake City, understanding how insurance coverage works can be confusing. Rideshare companies like Uber and Lyft offer unique insurance policies that differ from traditional auto insurance. 

In the aftermath of an accident, determining which insurance coverage applies can significantly impact your ability to recover compensation for medical expenses, lost wages, and property damage. 

At Flickinger Boulton Robson Weeks, our team of experienced attorneys is dedicated to helping you navigate the complexities of rideshare insurance coverage. Whether you’re a passenger, driver, or another affected party, we can help you understand your rights and ensure you’re treated fairly by insurance companies. Our goal is to guide you through the claims process and help you secure the compensation you deserve.

Overview of Rideshare Insurance Policies (Uber & Lyft)

Understanding rideshare insurance policies is crucial if you’re involved in an accident as a driver, passenger, or pedestrian in Salt Lake City. Both Uber and Lyft provide insurance coverage, but the extent of that coverage depends on the status of the rideshare driver at the time of the accident. 

Here’s an overview of how these insurance policies work:

Personal Insurance Coverage:

• If a rideshare driver is off-duty or not logged into the app, they are covered by their personal auto insurance policy, just like any other driver.
• In this case, the rideshare company’s insurance does not apply.

Period 1: Driver Logged Into the App but Not Accepting Rides

• Uber and Lyft insurance coverage:
  • Provides third-party liability coverage (injuries or damages to others) up to $50,000 per person, $100,000 per accident, and $25,000 for property damage.
  • This coverage applies only if the driver is logged into the app and waiting for a ride request.
• Driver’s personal insurance:
  • The driver’s personal insurance may still be applicable, but many policies do not cover commercial activities such as driving for a rideshare company.

Period 2: Driver Accepts a Ride Request and is En Route to Pick Up the Passenger

• Uber and Lyft insurance coverage:
  • Liability coverage: up to $1 million for third-party bodily injury and property damage.
  • Coverage applies to any accidents involving the driver and the passenger.
• Personal insurance:
  • The driver’s personal insurance may not apply during this period as the driver is now engaged in a business activity.

Period 3: Passenger is in the Car

• Uber and Lyft insurance coverage:
  • $1 million in third-party liability coverage.
  • Covers passenger injuries and property damage.
• Uninsured/Underinsured motorist coverage:
  • Rideshare drivers are also covered for accidents caused by drivers without sufficient insurance.
• Collision and comprehensive coverage:
  • If the rideshare driver has an accident, the rideshare company’s insurance may cover vehicle repair or replacement costs, subject to a deductible.

Navigating the complexities of rideshare insurance can be challenging, but understanding the different phases of coverage can help ensure that you seek the right compensation after an accident.

How Utah’s Rideshare Insurance Laws Impact Accident Claims

Utah’s rideshare insurance laws have a significant impact on accident claims involving rideshare drivers, passengers, and other parties on the road. As rideshare services like Uber and Lyft become increasingly popular in Salt Lake City and across the state, understanding the state’s legal framework for rideshare insurance is essential for those involved in accidents.

Utah’s Rideshare Insurance Requirements

Utah law requires rideshare drivers to maintain insurance coverage while they are engaged in rideshare activities. Drivers must carry personal auto insurance, which provides coverage when they are off-duty or not logged into the rideshare app. 

However, once drivers log into the app and begin accepting ride requests, the rideshare companies, such as Uber and Lyft, are responsible for providing specific levels of insurance coverage based on the driver’s status. 

This coverage varies depending on whether the driver is en route to pick up a passenger or actively transporting one. By having clear insurance requirements in place, Utah aims to protect both drivers and passengers in the event of an accident.

Impact on Liability and Claims

When a driver is offline

If a rideshare driver is not logged into the app or actively waiting for a ride request, their personal auto insurance is the primary source of coverage for accidents. However, many personal insurance policies may not cover accidents that occur during commercial activities like rideshare driving. If the driver’s policy excludes rideshare activities, it can lead to coverage gaps.

When a driver is online but has not yet accepted a ride request

In this scenario, Uber or Lyft provides liability coverage up to $50,000 per person, $100,000 per accident, and $25,000 for property damage. This coverage applies to third-party claims (such as other drivers or pedestrians injured in the accident). However, drivers may still face issues if their personal insurance does not cover this period.

When a driver has accepted a ride request or has a passenger in the car

At this point, Uber and Lyft provide $1 million in third-party liability coverage. This covers injuries to the passenger, other motorists, or pedestrians. It also includes uninsured/underinsured motorist coverage, which is crucial when the at-fault driver does not have sufficient insurance.

Claims Process

Rideshare accident claims in Utah can become more complicated due to the varying levels of insurance coverage provided at different stages of the ride. Utah’s insurance laws outline when and how rideshare insurance coverage applies, but both drivers and victims often encounter difficulties navigating the claims process. 

Since there are multiple potential sources of compensation, including personal auto insurance and rideshare company coverage, legal guidance is often necessary. Seeking legal advice ensures that all potential avenues for compensation are thoroughly explored, helping victims secure the compensation they deserve.

Understanding Utah’s rideshare insurance laws can help ensure victims of rideshare accidents are properly compensated and that all potential claims avenues are pursued.

Common Issues with Rideshare Insurance Claims

Rideshare insurance claims in Utah can be challenging for both victims and drivers due to several common issues that arise during the claims process. One of the primary complications is determining the exact coverage available at the time of the accident. 

The level of insurance coverage varies depending on whether the rideshare driver is offline, waiting for a ride request, or en route to pick up or drop off passengers. This distinction can make it difficult for victims to determine which insurance policy is responsible for covering damages.

Another issue involves the complexity of multiple insurance providers. In some cases, both the driver’s personal insurance and the rideshare company’s insurance may be involved, leading to confusion about who is liable for what. 

Insurance companies may attempt to shift blame onto one another, delaying the claims process and making it harder for victims to get compensated.

Additionally, rideshare drivers may not always maintain adequate coverage. Although Utah law requires drivers to have personal auto insurance, some drivers may not have sufficient coverage or may not carry it altogether. This can leave victims without the necessary compensation if the rideshare company’s insurance doesn’t apply.

Lastly, victims often face challenges when it comes to proving fault, particularly if the accident occurred during a transitional period, such as when the driver was waiting for a ride request but had not yet accepted a passenger. In these cases, navigating insurance claims can become more complicated, and legal assistance is often necessary to ensure fair compensation.

Legal Strategies for Dealing with Insurance Adjusters

Dealing with insurance adjusters after a rideshare accident can be a complex and stressful experience. Insurance adjusters are trained to minimize payouts and may try to downplay the severity of your injuries or shift blame. 

To protect your rights and maximize your compensation, it’s important to approach these interactions strategically.

Do not settle too quickly

Insurance adjusters may offer a settlement soon after the accident, often before you fully understand the extent of your injuries. It’s important not to accept an offer without fully evaluating the damages, as early settlements are often much lower than what you are entitled to receive.

Document everything

Keep a detailed record of all communications with the insurance company, including phone calls, emails, and letters. Additionally, gather all relevant evidence such as medical records, photographs of the accident scene, police reports, and any documentation related to your injuries and expenses.

Do not admit fault

During your discussions with insurance adjusters, avoid making statements that could be interpreted as admitting fault or downplaying the accident’s severity. Even seemingly harmless comments like “I’m sorry” could be used against you later in the claims process.

Seek legal advice

It’s crucial to consult with a qualified attorney before engaging in settlement discussions with the insurance company. A lawyer can help assess your case, guide you through the claims process, and ensure that you are not pressured into a low settlement.

By being cautious, documenting everything, and seeking legal guidance, you can better protect your interests and secure the compensation you deserve for your injuries and losses in a rideshare accident.