Do Uber and Lyft Provide Insurance for Passengers?

Uber, Lyft and some other rideshare companies do provide insurance coverage to protect rideshare passengers. The insurance also covers injuries to other drivers, pedestrians, motorcyclists, bicyclists and others outside the vehicle if the rideshare driver is at fault in an accident. 

The amount of coverage available depends in part on whether the driver is logged in and driving around waiting for a request, is traveling to pick up a passenger, or is transporting a passenger. 

What Insurance Coverage Must Rideshare Companies Provide in Massachusetts? 

Under Massachusetts law, and under the common practice of rideshare companies like Uber and Lyft, there are three different “periods” when a rideshare driver is working. The required insurance coverage varies by period. 

Period 1 – Logged on and Waiting for a Request

When a rideshare driver has logged in to the app and is available to take requests, but hasn’t yet accepted a request, Massachusetts requires: 

• $50,000 per person in bodily injury liability coverage, with an aggregate minimum of $100,000 per accident
• $30,000 in liability coverage for damage to someone else’s property

Period 2 – Traveling to Pick Up a Rider

When the rideshare driver has accepted a request and is en route to pick up a passenger, Massachusetts law requires much higher coverage. Unlike a personal auto insurance policy or the requirements for Period 1, this is blanket liability coverage.

The required coverage is $1 million per occurrence, to include all bodily injury and property damage claims for any passengers or others outside the vehicle who were injured due to the rideshare driver’s fault.

The coverage must also include $8,000 per person in personal injury protection.

Period 3 – Transporting a Passenger

Under Massachusetts law, coverage for this phase is the same as during Period 2. That is, an injured passenger is potentially covered for up to $1 million in damages. Because the $1 million in coverage is in the aggregate, the availability of those funds will depend in part on whether others outside the vehicle also have claims. 

Is the Rideshare Driver Liable for Injuries to a Passenger? 

If the rideshare driver caused the accident that injured a passenger, they may be directly liable as well. While most Massachusetts auto insurance policies don’t cover business use of a vehicle, some rideshare drivers purchase an endorsement that extends their car insurance to cover accidents while they are driving for a rideshare company. Even if the driver doesn’t have insurance coverage, they may be personally liable if the accident was their fault. 

It’s important to note that you cannot collect the same damages twice. In other words, if the rideshare company’s insurance carrier has fully covered your damages from the accident, you cannot collect again from the driver. 

What if the Rideshare Driver Wasn’t at Fault? 

If a passenger is injured in a rideshare accident and the rideshare driver wasn’t at fault, the primary source of compensation will be the responsible driver’s auto insurance coverage–just as it would if the injured passenger had been riding in a friend’s car rather than a rideshare vehicle. However, there are some additional protections through the rideshare company. 

First, personal injury protection (PIP) is required by law in Massachusetts. If the passenger’s injuries are minor, the $8,000 in PIP may cover them without the need for litigation. PIP can also replace income lost as a result of the crash.

Second, Massachusetts law also requires rideshare companies to provide uninsured and underinsured motorist coverage. That means their insurance will cover injuries to a rideshare passenger if the passenger was injured in a collision caused by an uninsured driver or a hit-and-run driver. The underinsured motorist coverage may fill the gap if the responsible driver didn’t have enough insurance to cover the damages. 

Help for Injured Rideshare Passengers in Massachusetts

As you can see, it can be tough just to determine who to file a claim with after a rideshare accident. And, you’ll still face all of the other issues that arise in any car accident case, such as proving who was responsible for the accident and establishing the monetary value of your damages. 

The insurance company representative who reaches out to you will have one job: to save the company money by weakening your claim and avoiding or minimizing payment. 

Your best first step after a rideshare accident is to contact an experienced Massachusetts car accident lawyer. Attorney Kevin P. Broderick has been fighting for injury victims in and around Lowell for decades. He has deep knowledge of Massachusetts injury law and extensive experience gathering evidence and negotiating with insurance companies. 

The Broderick Law Firm right now by calling 978-459-3085 or fill out our contact form.