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You May Not be Covered by Auto Insurance While in Uber or Lyft

The rise of new breeds of rideshare services such as Uber-X and Lyft is causing more controversies than what they imagined when they first launched the service.

These companies allow regular citizens to use their personal cars to pick up passengers willing to pay for a ride.  So I don't see how they are categorized as rideshare service to begin with.  There is no difference in how these companies operate compared to traditional taxi companies, except for the fact that they are not bound by the same regulations and insurance requirements.

Some insurance companies have clearly stated that their personal auto policies won't cover an accident, if a passenger has hired a driver for a lift somewhere.

The insurance issue was at the heart of a recent tragic accident in San Francisco causing the death of 6-year old girl, Sophia Liu when driver Syed Muzaffar struck the family.

Uber argues it is not liable because Muzaffar was not on his way to pick up a passenger at the time of the crash.  But the driver Syed Muzaffar said he was trolling for a fare at the time of accident.

Uber has added, "best-in-class background checks and insurance coverage ensures that Uber is the safest ride on the road."

The copy of Uber's commercial insurance policy was leaked online a few months ago.  The policy, which kicks in when a drivers’ personal policy cannot cover an incident, is provided by Virginia-based commercial specialty insurer James River Insurance Co. and interestingly notes “Raiser LLC” as the party insured instead of Uber Technologies Inc.

Lyft also carries similar insurance policy according to the company.  But how these policies will effectively cover everyone involved in various types of accidents remain questionable at this time.  Check back with us for the update on this topic.

You May Not be Covered by Auto Insurance While in Uber or Lyft Reviewed by Brandon on 1:43 AM Rating: 5

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