Insurance Coverage Liability in Uber and Lyft Vehicles

uber-phoneThe world of technology is again butting heads with legislators all over the country. New app ride-sharing services such as Uber and Lyft have been mired in litigation since their inception.

Recently, insurance coverage has been one of the key points of contention between the technology companies, insurance companies and legislators.

At issue is whose insurance policy applies when an Uber or Lyft driver gets into an accident. Currently, if a driver is involved in an accident and a passenger is in the car, the insurance policies provided by Uber and Lyft will apply.

If the driver is involved in an accident and there is no passenger in the car and the app is not on, then the personal insurance policy will apply.

BUT if the driver is involved in an accident, the app is on, and there is no passenger in the car, neither policy will apply. Uber and Lyft insurance policieis only apply when passengers are in the vehicle. And most personal insurance policies would argue that the app an activated app means the driver was engaged in commercial activity which is not covered by personal insurance policies.

The time period during which neither the Uber/Lyft insurance policies nor the personal insurance policies cover drivers is being called gap-coverage.

California is the first state to regulate gap-coverage with a new law.

Uber & Lyft Craft Proposed Legislation

In the face of rampant opposition, Uber and Lyft have been quietly cobbling together proposed legislation that provides for insurance coverage that addresses gap-coverage issues.

Backed by several large insurance companies and insurance trade groups, the proposed legislation seeks to mirror a new California law that will go into effect in July 2015.

The new law in California will require insurance companies to develop new insurance coverage policies specifically targeting ride-service providers such as those who work for Uber and Lyft.

These so-called “hybrid personal-commercial” auto insurance policies will allow drivers to have coverage during these time periods that drivers are driving with the app on but are not carrying passengers.

The law, AB2293, sets out minimum insurance coverage rates. At Mike Lewis Attorneys, we are excited that the residents of our state have increasing transportation options.

At the same time, we believe that legislators, insurance companies and technology companies have an obligation to work together to produce the kinds of policies that keep everyone safe.

If you or someone you love has been involved in an auto accident involving a Lyft or Uber driver in the Winston-Salem area, please contact Mike Lewis Attorneys for a free consultation.

Call 866-299-1769 or use the Free Case Evaluation form to schedule a free consultation.
  • North Carolina’s Rural Roads Some Of The Most Dangerous In The U.S.

    North Carolina’s Rural Roads Some Of The Most Dangerous In The U.S.

    According to research from National Association of Counties (NACO), North Carolina has more than 70,000 miles in rural roads. This may conjure up picturesque images of peaceful pastures and living life at a slower pace. While that may certainly be …Read More »
  • Hurt In An Accident: How To Prove Fault

    Hurt In An Accident: How To Prove Fault

    Imagine driving down Market Street thinking about all the things left to do in the day: picking up the kids, going to the grocery store, dropping off a package at the post office. You enter an intersection and the next …Read More »
  • Car Accident in Leased Vehicle: What To Do

    Car Accident in Leased Vehicle: What To Do

    There is nothing worse for a driver than being in a severe automobile accident. It’s not just the potential injuries, the hassle of dealing with the insurance companies, or, heaven forbid, trying to navigate a settlement in court. It’s the …Read More »
  • Car Accident Caused By Cell Phone in North Carolina

    Car Accident Caused By Cell Phone in North Carolina

    One of the most commonly asked questions here at Mike Lewis Attorneys is what the rules are concerning driving and cell phone usage. It’s hard to keep track when the rules change constantly, and no two states have the same …Read More »
Call Us Toll Free 866-299-1769