Getting into a car accident can be terrifying, no matter the reason. And if the accident causes an injury, it can be even more upsetting and often traumatic. On top of all of that, the last thing you want to worry about is whose insurance will cover the costs of your physical injury and damages to your vehicle.
So, when you get the insurance information of the other driver, what happens if that driver works for a Maryland rideshare company like Uber or Lyft?
Understanding third-party insurance coverage
Companies like Uber and Lyft have third-party liability insurance coverage that comes into play in the case of an accident. If one of their drivers causes the accident, the amount of coverage that is available will depend on two general factors:
- The driver is logged onto the app but hasn’t accepted a trip request. In this case, the coverage is $50,000 per person, $100,000 per accident, and $25,000 for property damage.
- The driver has accepted a trip request. If the accident occurs from when the driver accepts the ride to when the ride ends, the liability insurance coverage is $1,000,000 per accident.
When Uber or Lyft’s coverage may not apply
If the driver didn’t log onto the app, or the accident occurred outside of the trip time, Uber or Lyft will likely not provide any coverage. Rideshare drivers are generally individual contractors, so you will have to work with the driver’s insurance directly instead of the rideshare company.
This is where things can get tricky, as many car insurance policies don’t offer coverage for rideshare drivers. Lyft and Uber drivers can buy commercial policies that will provide them with enough coverage or rely on the limited coverage from their employer for uninsured or underinsured drivers. However, that may not be enough when it comes to a severe accident.
Fortunately, Maryland law requires Uber and Lyft drivers to have at least $50,000 to $100,000 in liability insurance before they can work for a rideshare company.
No matter the circumstances, if you sustained severe injuries from your accident, you may want to consider consulting with a personal injury attorney. They can help you understand your rights and receive the compensation you deserve.