Have you ever taken a ride with Uber and Lyft? From the booking, to the pick-up, to the drop-off, effortless right? Chances are you probably haven’t thought of getting in an accident and in the event that this did happen, whose insurer would carry the costs? Another key point to mention is that those who are employed with these ride-hailing companies are limited in their coverage as well. As you know personal vehicles are used and any damage suffered to your personal car is attributed to your personal insurance. Further, in the event that you are involved in an accident with another vehicle, liability insurance and not collision exists.
Many states are looking to reform the insurance regulations that are mandated for ride-hailing companies due to the influx in vehicular accidents, one specifically was the death of the six year old San Francisco girl who was hit by an Uber driver on New Year’s Eve of 2013. This accident made headlines because of Uber’s refusal to pay out on their $1 million insurance policy. Their refusal was justified because the driver was not on the way to, from, or transporting a client.
The State of Georgia recently passed House Bill 190, which will place more strict requirements on ride-hailing companies regarding insurance. Lawmakers have great concerns that Uber and Lyft have been able to benefit as a commercial entity, but they have not been held to commercial standards. If you take a close look at the agreement or also noted as “Terms of Agreement,” those utilizing this service are in a way indemnifying Uber and Lyft of all responsibility. House Bill 190, introduced by Rich Golick, will not only allocate protect to drivers and passengers, but it will require that Uber/Lyft register with the Georgia Department of Public Safety. Before the introduction of the new law, Uber/Lyft were not required to cover their drivers under their insurance and dropping coverage would not cause a violation of state law, not it carries a very high, costly penalty. To date, there are about 5,000 Uber drivers who currently serve the state of Georgia.
- Endorsement: This is where the driver’s personal insurance company would offer a supplement that would cover passengers in the event of an accident. However there would be an additional eight percent that would be charged to their premium every renewal period.
- Individual ride-service insurance: This type of coverage is exclusively for those employed with Uber. Under this coverage there would be a base rate with an additional charge per-mile.
- Lyft and Uber have opted to participate in a insurance coverage program called Period 1. During this time the coverage only exists when the driver has the app open and is accessible upon the driver being booked by the customer. However, the downside to this type of coverage is that collision, comprehensive, uninsured motorist coverage, and medical expenses are not taken care of.
The arena of personal injury claims can be complex, discouraging, and downright confusing when there are private individuals involved in an accident. When you are dealing with a multi-billion dollar company, you can imagine the issues and hassles that are sure to come about. Allow the attorneys at Angell Law Firm to help you navigate the system and ensure that you are fairly represented. Call us today!