What Are Coverage Tiers When It Comes To Rideshare Accidents?

Rideshare accident claims can be complex, as they may involve multiple insurance policies, from personal to commercial. The tiers define what type of insurance applies at different stages of the rideshare trip, directly affecting what compensation might be available for losses.

Whether you were a passenger or another motorist, having legal support can make a difference in navigating the process and getting fair compensation following a car wreck involving a Florida Uber or Lyft driver. Talk to an Orlando personal injury attorney to learn about your options.  Always speak to an experienced accident lawyer before speaking to any insurance company.

Coverage Tiers in Rideshare Accidents

Insurance coverage for rideshare drivers generally falls into three distinct tiers based on the driver’s status at the moment of impact.

• Personal insurance applies when a driver is offline or an app is off. When the driver is not logged into the rideshare app, they’re using their vehicle as a personal car. In this case, any accident that occurs is covered by the driver’s personal auto insurance. This is the same as if the driver were not affiliated with a rideshare company. If you’re involved in an accident during this phase, your claims must go through the driver’s personal insurance policy, which may have lower limits than commercial policies.
• App on but the driver is waiting for a ride request. Limited coverage is available through the rideshare company when a driver has the app on and is waiting to be hired. During this phase, both Uber and Lyft offer contingent liability coverage. This limited coverage is lower than phase three tier coverage and it only applies if the driver’s personal insurance doesn’t cover the accident. If the driver’s personal insurance is insufficient or denies the claim, the rideshare company’s contingent policy can help cover damages for injured parties.
• On the way to pick up a passenger or during a trip. Full coverage from rideshare companies are in place once the driver accepts a ride request and is en route to pick up the passenger or actively transporting a passenger. The highest tier of rideshare insurance coverage, this coverage is typically robust, as rideshare companies want to protect passengers, drivers, and other involved parties.

Coverage during the en route or trip phase is significant, ensuring that injured parties are more likely to receive fair compensation for medical bills, lost wages, and property damage. It is typically a million dollar liability policy designed to cover injuries and damages for both passengers and third parties, such as pedestrians or other drivers involved in the accident.

Why Coverage Tiers Matter

Understanding these coverage tiers is essential for accident victims, as passengers, drivers, or third parties. An experienced Orlando personal injury attorney who specializes in rideshare accident claims can walk you through which tier applies to your case, negotiate with insurance companies, and ensure you receive the compensation you deserve.

Could you use guidance on how to obtain funds after a rideshare collision? Consult with the dedicated lawyers at Israoui Law to better understand your rights and the options available under each coverage tier. Call 407-381-4529 for the personal attention you deserve.