The
Digest
DeWittLaw.com
FEBRUARY 2020
407-245-7723
THE LIMITS AND RESTRICTIONS OF RIDE-SHARE INSURANCE ARE YOU COVERED IN A RIDE-SHARE CRASH?
Services like Uber and Lyft have understandably dominated the ride-sharing market thanks to their convenience, accessibility, and cost-effectiveness. Gone are the days of thumbing it for a taxi because now, you can summon an Uber or Lyft to your location with a few keystrokes. However, if you’re in an accident while using this type of transportation, you need to know the risks associated with ride-sharing. Like any other car accident, the driver at fault holds liability. If the ride-share driver is found at fault, their personal insurance policy will not cover the damages because most insurance policies contain a business-use clause — meaning if the vehicle is being used for business rather than personal use, the insurance policy does not apply. However, the Florida legislature sought to remedy this situation back in 2017 when it passed a law requiring all ride-share drivers to carry $1 million dollars in bodily injury and wrongful death insurance. However, it is important to be aware of how these insurance laws work in order to ensure that you are properly covered while in an Uber or Lyft. First, if the driver is not logged into the ride-share app and gets into an accident, then the $1 million ride-sharing insurance policy mandated does not apply. If the driver is simply driving their vehicle for personal use, even though they sometimes use the vehicle as a ride-share, his or her personal insurance coverage would apply. Second, if the driver is logged into the ride-sharing app but has no existing ride requests, then the ride-share company can provide limited coverage — usually up to $50,000 for bodily injury per person and up to $25,000 for property damage, with a cap of $100,000 per incident. However, if the driver accepts a ride request and gets in a car accident while logged into the ride-share app, then victims may have coverage up to $1 million from the ride-share company. Whether you’re a ride-sharing driver, passenger, or another driver on the road, navigating insurance claims involving Uber, Lyft, and similar companies can be complicated. If you are traveling in a ride-share vehicle, make sure the driver is always
logged into the app. If you agree to pay him cash for a ride outside of the app, then there may not be insurance coverage should an accident occur. Further, ride-share companies gather data such as speed, hard braking, travel time, and other relevant data that may be helpful if there is an accident. If you do not complete the ride through the ride-share application, you may not be able to retrieve this data to help prove your case. Finally, if you’re ever in an accident involving a ride-share company, report the accident through the app immediately and insist that the driver wait for the police to arrive to issue a report. Without an accident report, it may be your word against the driver’s. If you find yourself in one of these situations, feel free to reach out anytime. Call us at 407-245-7723 or visit our website at DeWittLaw.com.
– Moses DeWitt
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PERSONAL INJURY - DIVORCE - REAL ESTATE
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