Rideshare companies have built an empire by avoiding responsibility. They call their drivers independent contractors to sidestep liability. They offer insurance coverage that sounds impressive—until you actually try to use it. And when accidents happen, they play a game of hot potato, tossing the blame between drivers, passengers, and third parties, hoping you give up before you see a dime.
Meanwhile, you’re the one dealing with the fallout. The pain. The hospital visits. The lost income. And the endless frustration of dealing with insurance companies that seem more interested in protecting their bottom line than helping you recover.
You shouldn’t have to fight this battle alone. The Desai Firm knows the games Uber and Lyft play—and we know how to beat them. Reach out to our Morgantown rideshare accident lawyers for a free consultation, and let us take the fight off your hands.
Understanding Rideshare Insurance Policies
Uber and Lyft advertise that they offer $1 million in insurance coverage. But that doesn’t mean they’ll automatically cover your losses. Their policies have loopholes, and in many cases, victims are left dealing with delays and denied claims.
The coverage available depends on what the driver was doing at the time of the crash. Here’s how it works:
Phase 1: The driver is offline, or the app is turned off
- The driver’s personal auto insurance is the only coverage available.
- Uber and Lyft provide no coverage during this period.
Phase 2: The driver has the app on but hasn’t accepted a ride request
Uber and Lyft provide limited liability coverage:
- $50,000 per person for bodily injury
- $100,000 per accident
- $25,000 for property damage
This coverage only applies if the driver’s personal insurance denies the claim.
Phase 3: The driver has accepted a ride or has a passenger in the car
- Uber and Lyft provide up to $1 million in liability coverage
- This also includes contingent collision coverage—but only if the driver carries collision insurance on their personal policy.
Who Pays for Damages in a Rideshare Accident?
Determining who is financially responsible after an Uber or Lyft accident depends on several factors, including who was at fault and which phase of the ride the driver was in at the time of the crash. Here’s how it typically plays out:
If You’re a Passenger in an Uber or Lyft
Uber or Lyft’s $1 million liability coverage should apply if you were injured as a ride in a rideshare vehicle. That means you should be covered for medical expenses, lost wages, pain & suffering and other damages related to the crash.
If You’re a Rideshare Driver
If you’re an Uber or Lyft driver and another driver caused the crash, their insurance should cover your injuries. But if you were at fault, coverage depends on which phase you were in:
- If the app was off, only your personal insurance applies.
- If the app was on but no ride was accepted, Uber and Lyft provide limited liability coverage.
- If you were picking up or driving a passenger, Uber and Lyft’s $1 million policy should cover the accident.
One major problem for rideshare drivers is coverage gaps. Many personal auto insurance policies exclude coverage if the driver was working for a rideshare company at the time of the crash. That means Uber and Lyft’s coverage may be your only option—and they will fight to pay as little as possible.
If You’re a Third-Party Driver or Pedestrian
If you were hit by an Uber or Lyft driver, getting compensation can be a nightmare.
- If the driver was off-duty, their personal insurance applies—which may have low coverage limits.
- If the driver was logged into the app but hadn’t accepted a ride, Uber and Lyft provide only limited coverage—which may not be enough to cover serious injuries.
- If the driver was carrying a passenger, Uber and Lyft’s $1 million policy should apply—but expect a fight from their insurance company.
Common Insurance Disputes in Rideshare Accidents
Here are some of the most common ways they try to deny compensation:
Denied Claims Due to Commercial Use Exclusions
Many drivers assume their personal insurance will cover them in an accident. However, most policies exclude coverage when a vehicle is being used for business purposes. That means if a driver hasn’t purchased additional rideshare insurance, their personal insurer can deny the claim—leaving them with no coverage at all.
Coverage Gaps Between Rideshare and Personal Insurance
If a rideshare driver is logged into the app but hasn’t accepted a ride, Uber and Lyft provide only limited coverage. That can leave injured victims without enough compensation to cover their medical bills and lost wages—especially in serious accidents.
Issues with Uber/Lyft’s Contingent Liability Policies
The rideshare companies often claim that their insurance only applies if the driver’s personal insurance denies the claim. This can lead to a back-and-forth battle where neither insurer takes responsibility, leaving victims stuck with the bill.
Delays in Payouts or Lowball Settlement Offers
Even when Uber and Lyft’s insurance applies, they won’t make it easy to get full compensation. Their adjusters drag out the process, pressure victims into accepting low settlements, or dispute the severity of injuries to reduce payouts.
Protect Your Rights With Morgantown Rideshare Accident Lawyers
Uber and Lyft have built billion-dollar businesses on convenience, but when something goes wrong, they disappear. They don’t want to take responsibility, and their insurance companies are trained to pay as little as possible—or nothing at all. If you’re waiting for them to do the right thing, you’ll be waiting forever.
That’s where The Desai Firm steps in. We cut through the red tape, push back against delays, and fight to get you the compensation you deserve. You didn’t ask for this accident, and you shouldn’t have to suffer because of corporate greed. We’ll handle the insurance companies while you focus on recovery.
Your claim is too important to leave in the hands of insurance adjusters. Let’s talk about your options—dial (304) 974-1974 or send us a message online.
