The Lyft one million dollar accident policy provides coverage for both drivers and passengers involved in accidents during a ride. However, this policy does not apply in all situations and comes into play under specific conditions. Understanding when the Lyft one million dollar accident policy applies is crucial for both riders and drivers to know their rights and coverage options in the event of an accident.
The following is a brief overview of how this policy works. It is recommended that anyone injured in an accident work with a Lyft accident lawyer to ensure they are protected.
Overview Of The Lyft One Million Dollar Accident Policy
Lyft’s one million dollar accident policy is designed to provide coverage for incidents that occur while a driver is actively engaged in a ride or in the process of accepting or completing a ride. This policy is part of Lyft’s comprehensive insurance coverage for drivers, passengers, and third parties involved in accidents during a Lyft ride. It is meant to ensure that financial protection is available for various types of accidents or injuries, including those involving medical expenses, property damage, and liability claims.
Conditions Under Which The Policy Applies
The Lyft one million dollar accident policy comes into play under specific circumstances, which are largely tied to the driver’s status in the Lyft app at the time of the accident. Lyft categorizes this into three “periods” of the driver’s status, each with different levels of coverage.
Period 1: Driver Is Offline Or Not Using The App
When the driver is offline or not using the Lyft app, the one million dollar accident policy does not apply. During this time, the driver is not considered to be working for Lyft and is not covered by Lyft’s insurance policy. If an accident occurs while the driver is offline, the driver’s personal auto insurance policy would apply, and the victim would need to file a claim with that insurance provider.
Period 2: Driver Has The App On And Is Waiting For A Ride Request
The second period applies when the driver has the Lyft app on, but they have not yet accepted a ride request. This period is often called “period 2” or the “waiting for a ride” phase. In this phase, the Lyft one million dollar accident policy applies, but with limited coverage. If an accident occurs, the policy provides liability coverage of up to $50,000 per person for bodily injury, up to $100,000 in total for bodily injury per accident, and up to $25,000 for property damage. Importantly, the driver’s personal auto insurance must also cover any additional costs or damages.
Period 3: Driver Has Accepted A Ride And Is Transporting A Passenger
The most comprehensive coverage under Lyft’s one million dollar policy occurs during period 3, which begins when a driver accepts a ride request and ends when the ride is completed, and the passenger exits the vehicle. During this period, Lyft’s one million dollar accident policy provided the highest level of coverage. It includes up to $1 million in third-party liability coverage for accidents involving bodily injury, death, and property damage caused by the driver’s actions. This coverage extends to both the driver and any passengers involved in the accident, whether they are Lyft riders or other individuals involved in the crash (such as pedestrians or drivers of other vehicles).
In addition to the $1 million liability coverage, Lyft also provides contingent collision and comprehensive coverage for the driver during period 3, subject to a deductible. This coverage covers vehicle repairs or replacement in the event of an accident.
Key Exclusions
While Lyft’s one million dollar accident policy provides significant protection, it does have some key exclusions:
- Driver’s Personal Auto Insurance: If the driver’s personal insurance policy does not cover the incident (such as when the driver is not using the Lyft app or driving outside of Lyft’s designated hours), the Lyft policy will not apply, and the driver may be personally liable for damages.
- Uninsured Drivers: If the Lyft driver lacks the necessary insurance coverage or is found operating the vehicle under the influence of drugs or alcohol, Lyft’s insurance policy may not apply. In such cases, the victim may need to seek compensation through driver insurance or other legal recourse.
- Non-Lyft Rides: If the driver is using the vehicle for a non-Lyft ride, such as personal errands, the policy does not cover accidents that occur during this time.
Thank you to our friends at Aaron Feuer Law for their insight into Lyft accidents.