If you rideshare in Denver using any of the popular companies (Uber and Lyft seem to be the giants), you are putting a lot of trust in your driver! And if you’re a Denver Uber or Lyft driver, you are putting a lot of faith in the company you drive for.

Why?

  • Riders: What if your Uber driver gets into an accident while you’re in his car? Do you know Uber’s insurance policies?
  • Uber and Lyft Drivers: Are you fully aware of when you’re covered by your company’s insurance policy and when you’re not?

In this article, I’m going to explain how insurance works with rideshare programs, particularly with the two biggest companies, Uber and Lyft.

Insurance Information for Uber Drivers in Denver and Lyft Drivers in Denver

Luckily, my research shows that both Uber and Lyft carry huge policies for their drivers. So, if they get in an accident while working for their rideshare company, they are likely covered with enough insurance to compensate for any damage or injuries they cause or which are done to them and their riders. (Riders, if you use other rideshare companies, check their insurance policies before getting in that car!)

This is the gap that some drivers may not understand. The instant you stop driving for Uber or Lyft, you’re back on your own policy.

Here’s how insurance works for rideshare programs in Denver

Let’s use Uber’s insurance program as an example. You are covered by Uber’s insurance when…

  • You’re on the Uber platform and before you accept a request: Uber covers you during this time but only minimally. Basically, you have liability insurance through Uber when you are online with them, before you accept a fare request. Liability insurance covers any damages you cause to another person. (It does not cover any damage to you or your car.) The amount of coverage varies by state but Uber liability coverage provides at least $50,000 per person and $100,000 per accident for bodily injury, and $25,000 per accident for property damage. But again, you’d better have your own policy on your car for any damage to your property or person. You may be waiting for a fare and working for Uber, but your car isn’t covered by Uber.
  • You accept a fare request and are driving to pick up your fare, and when driving your fares around: During this time, you are covered for three things:
    • 1) Third party liability coverage, which covers any damage you cause to someone else. This coverage is at least $1,000,000 per accident.
    • 2) UIM or Underinsured motorist bodily injury coverage, which covers you and your riders if someone else is at fault and they don’t have enough insurance to cover all your needs and your riders’ needs. This coverage is also at least $1,000,000. 3) Collision and comprehensive coverage, which will help pay for damage to your vehicle whether or not you cause an accident (but you also need to have your own collision insurance in order to access this Uber coverage).

More road time equals more opportunities for accidents.

You are not covered by Uber’s insurance when…

  • You’re driving your car for your own use: This is the gap that some drivers may not understand. Think about how loaded-up your car is when you’re driving for Uber or Lyft. You literally have millions of dollars in coverage once you accept a fare and drive those riders around. The instant you stop driving for Uber or Lyft, you’re back on your own policy. Are you properly covered?

I’m guessing Uber and Lyft drivers in Denver are simply on the road more than the average Denver driver, going to and from the spots where they wait to take a fare, and those times may not be covered by the rideshare company. More road time equals more opportunities for accidents. And if you rely on your rideshare income, you need to make sure your auto insurance coverage will enable you to emerge from an accident with a functioning car and a healthy body so that you can keep driving and earning!

Example of an Uber Accident in Denver

Yes, rideshare drivers and their passengers get in accidents in Denver. We have a client who was riding his bicycle legally and got doored by a passenger exiting an Uber car on the driver’s side. The driver parked in a bike lane to let his fare out, so the bicycle accident was the driver’s fault and Uber’s insurance will pay for his injuries and losses.

If you have been in an Uber accident in Denver or a Lyft accident in Denver and you’re confused about the insurance policies that should cover your damages or medical bills, give me a call today.