Do Lyft Drivers Have Special Insurances For Passenger Injuries?

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lyft accidents

Driving your own car isn’t always practical. Many people regularly use public transportation, taxis, and rideshare services like Lyft and Uber.

When passengers board any form of transportation, including trains, buses, and taxis, they want to know if insurance will cover them if their vehicle is in an accident. That question is more concerning when entering Lyft or Uber cars because those vehicles belong to their drivers, not the company.

The Mike Morse Law Firm understands your concerns.

What Is Lyft?

Founded in 2012, Lyft is a company that offers many forms of transportation to those willing to pay for their services. Headquartered in California, Lyft services are available in the U.S. and Canada.

While Lyft rides are similar to taxis, there are legal differences. Taxi cabs typically belong to a taxi company, and their drivers are company employees. Lyft drivers usually use their own vehicles to offer rides, and they are independent contractors for Lyft, not employees.

Lyft allows drivers to rent cars through their Express Drive program in some areas.

Does Lyft Provide Insurance Coverage?

Lyft maintains insurance policies that compensate passengers if they sustain injuries in a covered accident. Lyft’s third-party auto liability policy limit is at least $1 million. This coverage should compensate eligible accident victims for their injuries and property damage.

That seems simple, right? Unfortunately, insurance claims against Lyft drivers are often complicated to handle on your own. The Mike Morse Law Firm can help.

Although Lyft provides insurance coverage to its drivers and passengers, these policies aren’t always active. Drivers must also maintain personal auto insurance that meets their state’s required minimums. State requirements vary.

State Minimums

Every state requires licensed drivers to obtain minimum amounts of auto insurance coverage. In some states, including Michigan, drivers need to purchase personal injury protection insurance, which compensates injured accident victims for their injuries regardless of who is at fault for causing a collision.

Michigan’s minimum liability coverage is as follows:

  • $50,000 bodily injury per person per accident
  • $100,000 bodily injury per accident
  • $10,000 property damage per accident

You must also purchase at least $250,000 of PIP insurance. While it’s legal to drive with these limits, many accidents cause damage that costs more.

Whether drivers use their vehicles or rent one, Lyft expects them to maintain the mandatory minimums for their state.

Driver Status

Lyft’s insurance policies are only in force in certain circumstances:

  • No coverage: drivers must rely on their own policies when they are “off duty.”
  • Partial coverage: when drivers are standing by and waiting for ride requests, Lyft insurance applies if personal policy limits don’t meet:
  • $50,000 per person bodily injury
  • $100,000 per accident bodily injury
  • $25,000 per accident property damage
  • Full coverage: when drivers are on their way to pick up passengers, and during trips, Lyft’s full coverage is in effect:
  • At least $1 million third-party liability
  • First-party coverages that can include PIP and underinsured or uninsured motorists
  • Conditional collision and comprehensive coverage

While passengers riding in a Lyft car are covered during rides, Lyft cars can also be involved in accidents at other times.

Driver’s Personal Policy

Most insurance companies require rideshare drivers to purchase additional policies. Without this rideshare coverage, carriers might deny paying damages resulting from an accident.

How Else Are Lyft Accidents Complicated?

Every accident is different and has its own complexity. State laws and insurance requirements are only some of the potential complications injured Lyft accident victims face.

No-Fault Coverage

Even though Lyft maintains auto insurance to compensate their passengers and drivers under covered accidents, these policies aren’t the first to pay no-fault benefits:

  1. Your PIP policy
  2. Your spouse’s PIP policy
  3. A resident relative’s PIP policy
  4. Lyft’s PIP policy

Lyft’s PIP insurance is the last policy responsible for paying your benefits.

Accident Cause

Lyft cars are the same as others in that they can be involved in accidents through no fault of their own. Other vehicles can hit them, uncleared snow or ice buildups can cause them to slide into others, and pedestrians or animals can dart directly in front of them.

Even in no-fault states like Michigan, investigations into the cause of a collision are performed to determine who is ultimately liable for paying damages.

Commercial Vehicles

If a commercial vehicle, such as a taxi or semi-truck, causes your accident, determining the responsible party’s identity is complex. That’s because many parties are potentially liable, including:

  • Driver
  • Employer
  • Companies that perform mechanical maintenance on the vehicle
  • Cargo owners, loaders, and shippers

Each entity should have insurance coverage, but these companies will likely attempt to shift the blame to another. While they’re fighting, you are probably experiencing financial strain; you just want compensation. The Mike Morse Law Firm will help you get it.

Government Involvement

Any claim against a government agency is complicated. Every state has its own procedures, statutes of limitations, and requirements. If you don’t follow them correctly, you’ll likely lose your right to seek compensation. Government involvement in car accidents may include:

  • Government-owned vehicles
  • Government employees
  • Improperly maintained roads
  • Malfunctioning traffic signals

Contact the Mike Morse Law Firm immediately if your accident included government involvement. Even the best attorneys need time to investigate an accident and build a case, and the timeframe for claims against a government agency is typically much shorter than other claims.

How Can a Lyft Accident Attorney Help?

If you sustain injuries in a Lyft accident, you need an attorney with experience handling this type of personal injury claim or civil lawsuit. Without competent legal representation from a lawyer focusing on Lyft accidents, you may miss crucial deadlines, make errors, and obtain only a fraction of the compensation you’re due.

As you’ve seen, Lyft accident claims are often complex. The Mike Morse Law Firm attorneys know how to navigate these claims successfully to obtain maximum compensation for our clients. We will also:

  • Provide advice, information, and legal options
  • Properly prepare and submit paperwork before deadlines
  • Perform a thorough investigation, gathering evidence to support your claim
  • Speak to insurance company representatives for you
  • Negotiate a favorable settlement from liable insurance companies
  • File a civil lawsuit on your behalf if warranted

You’ll need to complete these tasks alone if you don’t hire an attorney.

What Compensation Can You Receive?

Injured accident victims deserve reimbursement for expenses they face resulting from the collision, including:

  • Medical bills
  • Lost wages
  • Certain daily expenses
  • Property damage

They may also qualify to seek compensation for things like:

  • Pain and suffering
  • Inconvenience
  • Permanent disfigurement
  • Losing the ability to enjoy life
  • Damage to social and personal relationships

In rare cases, your case might be eligible for exemplary damages in Michigan.

Your Mike Morse attorney will assess your case, tell you how much it’s worth, and fight on your behalf to obtain that compensation.

Why Choose the Mike Morse Law Firm?

The Mike Morse Law Firm is Michigan’s largest personal injury firm, meaning that we have extensive resources at our disposal to fight for your best interests. We have won more than $1 billion for our clients, and we won’t charge any fees until we win compensation for you.

Even though our firm is large, we give our clients the personal attention they deserve. We have a five-star Google review rating, showing that our clients are satisfied with our services. Contact us today to request your free case evaluation. Someone can speak to you 24/7. Call 855-MIKE-WINS or (855) 645-3946, use live chat, email us, or submit our contact request form.

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