Rideshare insurance is complicated. The major companies, Uber and Lyft, have positioned themselves to avoid most liability in case of an accident. In some crashes, rideshare drivers have to use their own insurance to cover the damages, even if they were working at the time of the accident.
To give drivers and passengers better coverage, both major rideshare companies instituted similar insurance policies. These plans divide a driver’s time into “periods” that determine coverage during an accident. But what are rideshare periods, and when do they apply?
RIDESHARE PERIODS EXPLAINED
Each period represents a different part of the rideshare transaction. Both companies define four insurance periods, ranging from a registered rideshare driver, not using the app to an active driver with a passenger in the vehicle.
Period 0: Offline
Drivers receive no additional coverage when their app is off or when they are not acting as a driver. In the event of an accident, drivers must use their personal insurance.
Period 1: Looking for Passenger
A rideshare company’s insurance applies as soon as the driver starts looking for work. At this stage, both Uber and Lyft offer third-party liability coverages (Up to $100,000 per accident for bodily injury). However, these protections only apply if the damage exceeds the driver’s personal insurance.
Period 2: Matched with Passenger
Once the driver confirms a ride, they receive $1 million in third-party liability insurance. This persists until the matched passenger is brought to their destination.
Period 3: Passenger in Vehicle
When a passenger enters the vehicle, rideshare companies add both uninsured motorist coverage and collision protection until the conclusion of the ride.
If you or someone you love suffered serious injuries in a rideshare accident, we are here for you. If you’d like an experienced Austin personal injury lawyer from Glen Larson Law Injury Attorneys to evaluate your case, please call (512) 883-0277 or send us an email.