Navigating Insurance Claims After a Rideshare Accident

Differences Between Rideshare and Traditional Auto Insurance Policies

Rideshare drivers use their vehicles for both personal and commercial purposes, creating unique insurance challenges. Unlike traditional auto insurance policies that cover personal driving, rideshare drivers must have coverage that applies while they are actively working for Uber, Lyft, or other rideshare services. 

To address this, rideshare companies provide additional coverage, but it is not always comprehensive. Understanding these differences is crucial for drivers, passengers, and accident victims when filing an insurance claim.

Traditional Auto Insurance Policies

A standard personal auto insurance policy typically includes the following:

• Liability coverage: Covers bodily injury and property damage caused to others.
• Collision and comprehensive coverage: Pays for damage to the driver’s own vehicle (if included in the policy).
• Uninsured/underinsured motorist coverage: Provides protection if the at-fault driver lacks sufficient insurance.

However, traditional auto insurance does not cover commercial activities, meaning a rideshare driver’s personal policy may deny a claim if the driver was working for Uber or Lyft at the time of an accident.

Rideshare Insurance Coverage

Rideshare companies provide varying levels of coverage depending on the driver’s status in the app:

• App Off: Only the driver’s personal auto insurance applies.
• App On, No Ride Accepted: Limited liability coverage (e.g., $50,000 per person, $100,000 per accident).
• Ride Accepted/Passenger in Car: Full commercial coverage up to $1 million in liability insurance.

Since coverage changes depending on the driver’s activity, determining which policy applies after an accident can be complicated. At Flickinger Boulton Robson Weeks, we help accident victims understand which insurance policy covers their claims and fight for the maximum compensation available. 

Challenges in Dealing with Multiple Insurance Companies

When a rideshare accident occurs, determining which insurance company is responsible for covering damages can be a complex process. Multiple insurance policies may apply, including the rideshare company’s coverage, the rideshare driver’s personal policy, and the insurance of any other involved motorists. 

Navigating these overlapping policies often leads to disputes, delays, and denied claims.

Determining Which Insurance Policy Applies

One of the biggest challenges in rideshare accident claims is establishing which insurance policy should cover the damages. The applicable policy depends on what the rideshare driver was doing at the time of the accident:

• App Off: Only the driver’s personal insurance applies.
• App On, No Ride Accepted: Limited liability coverage from the rideshare company applies.
• Ride Accepted or Passenger in Car: Uber or Lyft’s $1 million policy provides coverage.

This tiered structure leads to disputes between insurance companies, with each party attempting to shift responsibility onto another insurer.

Common Issues When Dealing with Insurers

• Delayed Claims Processing: Insurance companies may take weeks or months to determine liability, leaving victims struggling to pay medical bills and car repairs.
• Claim Denials: Some insurers may argue the rideshare company’s policy should pay, while the rideshare insurer may try to shift responsibility back to the driver’s personal policy.
• Low Settlement Offers: Insurance companies often undervalue claims, offering far less than victims need for medical expenses, lost wages, and pain and suffering.

How an Attorney Can Help

At Flickinger Boulton Robson Weeks, we handle all communication and negotiations with insurance companies to ensure you are not taken advantage of. Contact us today to protect your rights and pursue the compensation you deserve.