UBER, LYFT, AND A GAP IN INSURANCE COVERAGE – WHAT YOU SHOULD KNOW

We’ve written before about Uber’s service in Florida and what concerns consumers may have with the company following an accident. A new article in Fast Company details the complex insurance situation that Uber drivers, passengers, and other drivers face in an accident involving a vehicle driven by an Uber driver. Basically, Uber’s commercial liability insurance doesn’t kick in until the driver has “accepted” a trip via the app. When the driver isn’t using the app, the driver’s personal insurance is the only coverage available. In the time between turning on the app and accepting a trip, Uber provides back-up insurance coverage of $50,000 for each injured person up to a maximum of $100,000 per accident.

California is looking to impose higher insurance limits on drivers offering Uber service, whether or not they are actively seeking a fare or carrying a passenger. As Sofia Liu’s tragic case in San Francisco highlighted, these companies and their drivers should ensure that they are financially responsible when an accident happens. Whether or not Florida seeks to ensure these companies are financially responsible for their drivers remains to be seen.