Rideshare companies (e.g., Uber, Lyft) offer undeniable convenience to customers. A rideshare app on a cell phone, a click, and a driver arrives in minutes. Rides are frequently cheaper than a taxi, too. When A Rideshare Company's Insurance Policy Is Involved
For example, if an accident occurs while a rideshare driver is awaiting a ride request, the company’s insurance coverage is substantially less. If the rideshare driver is not actively accepting rides or their app is off, the rideshare company’s insurance is not involved at all. Insurance coverage would be available through the rideshare driver’s personal auto insurance policy.
But here’s the rub. Personal auto insurance policies generally won’t provide coverage for accidents occurring in the course of business use (wise rideshare drivers will seek supplemental insurance). Victims of negligent rideshare drivers may seem to have no avenue to pursue compensation if the rideshare company is off the hook and the rideshare driver’s own insurance company refuses coverage.
