Rideshare services like Uber and Lyft have revolutionized the way we travel. Though convenient, these services raise questions about accident liability. It’s important to understand how insurance coverage works for both passengers and drivers, especially under California law.
Rideshare insurance requirements in California
California mandates insurance coverage for rideshare companies and their independent drivers. These laws ensure protection for both passengers and drivers in an accident. Rideshare companies provide insurance coverage from the moment a driver turns on the rideshare app until the passenger exits the vehicle.
Insurance coverage for rideshare drivers
Rideshare drivers in California have different levels of insurance coverage depending on their status at the time of the accident. If a driver logs into the app but hasn’t accepted a ride request, the insurance coverage remains limited. During this period, known as Period 1, drivers must have liability coverage of at least:
- $50,000 for bodily injury per person
- $100,000 for bodily injury per accident
- $30,000 for property damage
Period 2 starts when the driver accepts a ride. Period 3 begins once the rider is in the vehicle. During these periods, the coverage increases significantly. Rideshare companies provide at least $1 million in liability coverage, including uninsured and underinsured motorist coverage.
Additionally, contingent collision and comprehensive coverage apply if the driver’s personal insurance includes these coverages.
Insurance coverage for passengers
Passengers in a rideshare vehicle receive coverage from the rideshare company’s insurance from the moment they enter the vehicle until they exit. This coverage includes the $1 million liability insurance that rideshare companies carry. This protection applies regardless of who caused the accident.
If another driver causes the accident, the rideshare company’s insurance still covers the passengers, ensuring compensation for any injuries or damages. The uninsured and underinsured motorist coverage protects passengers if the at-fault driver lacks sufficient insurance.
Rideshare insurance ensures protection
Understanding the nuances of insurance coverage in rideshare accidents helps both passengers and drivers. This knowledge can help you feel more secure the next time you use a rideshare service in California.