With ridesharing services such as Uber and Lyft becoming more popular each day, there are many questions arising relating to insurance. What kind of coverage can an Uber driver expect and when are they covered by Uber? That answer depends on when the accident took place, and to better explain coverage, Uber has divided the driver’s time into three different “periods.”
These periods explain what is covered during each step of the ridesharing process.
Period 1: The Rideshare Application Is on and the Driver Is Waiting for a Request
As you may expect, Uber doesn’t take responsibility for drivers injured on their own time. It may, however, come as a surprise that Uber is not considered liable for its drivers’ crashes simply because the Uber application is running.
Why? The short answer is “because we can.” As ridiculously insensitive as it sounds, Uber does this because they can. Uber’s drivers are considered independent contractors by law rather than official Uber employees. You are “on the clock,” in this instance, once a passenger has requested a ride. During “period 1” Uber is NOT held liable and the car accident will be handled like a traditional accident. It’s worth noting that during this time Uber does provide liability insurance during period 1.
Period 2: The Driver Has Accepted the Rider Request and Is on the Way
Period 2 takes place when you are en route to a passenger’s location. During this time Uber’s insurance covers you and any damage taken. However, there are some things to be careful of.
Following an accident, you may not be able to make it to your passenger's location which will result in a ride cancellation. This may cause some problems to arise because for all Uber knows, the passenger canceled before you got into an accident. Which means that although you were in period 2, Uber can make the claim that you were in period 1 and get off without paying.
Gathering evidence during this time can make or break your claim. Be sure to take a screenshot of the active ride showing the date and time.
Period 3: The Passenger Is in the Vehicle
Period 3 is the simplest period to explain. This is the time where a passenger is in your vehicle and you are on your way to the destination. During this time Uber’s insurance will always cover you, as you are “on the clock.” Since there is plenty of evidence that you were “on the clock” at the time of the accident, it will be easy for a qualified attorney to prove you were working.
Call us today at (267) 214-8608 if you were injured in an Uber or Lyft accident.