Uber, Door Dash, Lyft – Are You Covered?
In 2020, there was an estimated 1 million Uber drivers, 700,000 Lyft drivers, and over 100,000 Door Dash drivers in the United States. If you are not familiar with Uber, Door Dash, or Lyft, they are companies known as “ride-sharing” companies. Ride-sharing is defined as “an arrangement in which drivers of usually privately owned vehicles who wish to offer rides and passengers who wish to obtain rides use a network (such as one accessed through an app or a website) to coordinate the sharing of individual automobile trips for which the passengers pay a fare”. Ride-sharing doesn’t necessarily have to pertain to the transport of people and can include the delivery of foods or goods, as well.
While working for a ride-sharing company, it is essential that you protect yourself and your vehicle by obtaining the proper insurance. Surprisingly, your normal car insurance coverage will most likely not cover you if you are in a motor vehicle accident while performing your ride-sharing duties or acting under the scope of employment, such as being logged into your ride-sharing application and offering rides or food delivery for compensation. For most car insurance companies, once you log into your ride-sharing application or “employment”, you may lose all coverage if you are in a motor vehicle accident while driving, but once you log back out of the application, or are no longer driving under the ride-sharing application, your normal car insurance will resume. Lyft and Uber will only cover your vehicle if it is in a collision if you have passengers in your vehicle at the time of the collision, and will only allow limited liability coverage while you are logged into the app and waiting for rides.
In order to protect yourself while you are working for a ride-sharing company, it is essential that you have the proper motor vehicle coverage. Your car insurance policy will outline what is and is not covered if you are operating under a ride-sharing application under the scope of employment. Most car insurance companies will not cover the cost to repair your vehicle, your medical bills, or reimburse you for the cost of a rental car if you do not add ride-sharing coverage to your policy and are in a collision. Additionally, car insurance companies may even cancel your car insurance policy if they find out that you have been driving your car under the scope of employment without disclosing that information to them.
It is up to the policyholder to add ride-sharing coverage to their yearly premium, which can cost an extra $15 to $250 per year, depending on the insurance carrier. Although ride-sharing coverage is not available through all insurance companies currently, it is essential that you contact a car insurance company that offers ride-sharing coverage in order to protect yourself and your passengers if you are ever in a collision while performing ride-sharing or food delivery services.
Nicholson Law Firm has a long history of supporting our clients who are victims of negligence – whether in a car accident, truck accident, boat accident, ATV accident, motorcycle accident, medical malpractice, construction accident, dangerous or defective property. Based on your free case evaluation, we will seek the compensation you deserve. Recoverable damages include medical costs, lost wages, loss of enjoyment of life, emotional distress, physical impairment, disfigurement, permanent injury, physical pain, property damage, and other suffering. Our trusted and experienced legal team will be with you every step of the way.
If you’ve been injured, it is important to call Nicholson Law Firm today at 603-856-8441 or email now at firstname.lastname@example.org for a free case evaluation. We will pursue insurers to seek the compensation you deserve.
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