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Uber & Lyft Insurance Policies – Information For Ride Sharing

09 May 2019  | Adam Blake  | Houston Law Firm

Before 2009, no one had ever heard of Uber or Lyft. Fast forward ten years to 2019, Uber and Lyft are two of the most prominent companies worldwide. Since Uber was founded in March 2009, statistics show that Uber Technologies, Inc. provided approximately 4 billion rides in 2017 alone. To date, Uber has provided nearly 10 billion total rides worldwide since it was founded. Likewise, Lyft, which was founded in June 2012, averages over 1 million rides per day worldwide. With that much traffic on the road, unfortunately, vehicle crashes are bound to happen.

Policies Protecting Riders

Section 1954.051 of the Texas Insurance Code requires that ride sharing companies such as Uber and Lyft to carry liability insurance to protect the citizens of this state. However, the amount of insurance provided depends on whether the Uber/Lyft driver is currently available for rides versus en route or engaged in a trip. If the driver is logged in to the company’s app and is only available for rides, Texas law requires that the Uber/Lyft provide $50,000 worth of liability coverage per person and $100,000 worth of liability coverage per incident. Once the driver has accepted a ride and while the trip is ongoing, Texas law requires that Uber/Lyft carry $1,000,000 worth of a liability insurance. This insurance coverages protects both the riders in the Uber/Lyft vehicle and other drivers on the road who may be injured by the negligence of an Uber/Lyft driver.

Importantly, Texas law also requires that Uber/Lyft provide Uninsured/Underinsured Motorist Coverage for its drivers. This coverage protects the Uber/Lyft driver in the event that they are injured by the negligence of a third party and that third party either: 1) does not have enough liability insurance to cover the damages of the Uber/Lyft driver or 2) has no insurance to cover the damages of the Uber/Lyft driver.

What To Do After a Ride Sharing Crash

If you are a passenger in an Uber/Lyft, involved in a vehicle crash caused by an Uber/Lyft driver, or if you are driving a vehicle for Uber/Lyft and you are involved in a crash because of a third person’s negligence, you are protected by the above mentioned liability insurance. However, it is extremely important to remember, the insurance companies for Uber/Lyft are not your friends. It is their job to get you to settle your claims for as little money as possible. In no event should you ever sign any paperwork with an insurance adjuster before seeking consultation with an experienced personal injury attorney.

If you are involved in a crash caused by the negligence of an Uber/Lyft driver, call the experienced attorneys Perdue & Kidd immediately so we can help you preserve your rights following the crash and help you get the financial compensation you deserve.

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