Does Uber’s $1 Million Insurance Coverage Apply to Your Accident Claim?

You could receive up to $1 million to cover your losses after a car accident caused by an Uber driver—but first you need to know whether this coverage applies in your situation, because Uber’s insurance policy comes with some severe restrictions. Here we explain how liability works in Uber accident cases, when insurance coverage is applicable, and what you need to do to secure your best recovery if you’ve been hurt in an accident caused by an Uber driver.

How Does Uber’s Insurance Coverage Work in California?

Unlike standard car insurance, Uber’s insurance policies for drivers vary in coverage depending on the driver’s status. So coverage is different according to whether the driver is:

• Transporting a passenger
• Driving to pick up a passenger
• Waiting for a ride request with the app turned on
• Driving with the app turned off

Because the driver’s status affects insurance coverage, it is vitally important to learn the driver’s status at the time of the collision and to secure evidence demonstrating that status, such as screenshots of ride requests.

When Does the $1 Million Policy Apply?

There are two situations when Uber’s insurance will provide up to $1 million to victims of an accident caused by one of its drivers: when the driver is actively providing a ride or when the driver has accepted a ride request and is driving to collect the passenger.

The insurance coverage in this situation may also include coverage for losses caused by an uninsured or underinsured motorist other than the Uber driver. Policy details will vary somewhat depending on the state—you can see some of the details by viewing the certificate of insurance coverage for drivers in California.

What Happens if the Driver Was Waiting for a Ride Request?

When an Uber driver has the app turned on and is waiting for a suitable ride, then the coverage is much less comprehensive. The insurance company may try to argue that they have no responsibility at all. They may argue that the driver wasn’t actively seeking to provide a ride or that the driver’s personal insurance should bear primary liability for other reasons.

Generally, Uber’s insurance provider will provide coverage at the state minimum amounts when their drivers are seeking requests but have not yet accepted a ride request. In California, that means the insurance provides $50,000 in coverage for a single injury or $100,000 in total coverage if more than one person is injured in a collision. Not only is the amount much less in this situation, but the insurance company may get into a dispute with the driver’s individual personal insurance carrier. Both insurance companies might try to shift the responsibility to each other—or join forces to blame the victim.  

What if the Uber Driver Was Offline?

If the Uber driver had the app turned off at the time of the accident, the driver is considered offline and operating on their own personal time. Uber’s insurance policy will not provide any coverage. Instead, recovery must come from the driver’s personal insurance policy or other sources.

FAQs About Insurance for Rideshare Accidents

Who can file a claim under Uber’s insurance?

Broadly speaking, the insurance Uber provides should cover anyone who was injured by the actions of the Uber driver. This includes:

• Passengers in the Uber vehicle
• Drivers and passengers in other vehicles
• Pedestrians
• Riders on bicycles and motorcycles

Does Lyft have the same type of insurance as Uber?

In most cases, insurance provided by Lyft is similar to, if not identical to, the insurance provided by Uber. For both rideshare companies, the terms vary somewhat by state. Lyft’s insurance certificate for California is posted on the company’s website.

What are some of the problems that can delay or reduce recovery in an Uber accident claim?

Insurance companies will do everything within their power to avoid paying out full amounts for accident claims, so they will take advantage of conflict or uncertainty to raise objections. Factors that frequently cause claims to be delayed or undervalued include:

• Disputes about the driver’s status at the time of the accident
• Multiple insurance companies disputing liability
• Conflicting statements from witnesses
• Lack of clarity or conflicting evidence regarding fault
• Serious injuries with long-term effects that are difficult to value

When an accident victim works with an experienced injury attorney immediately after the accident, they have the best opportunity to obtain evidence, overcome the tactics of the insurance companies, and recover a full settlement without unnecessary delays.

Can you sue Uber directly?

In most cases, it is not possible to sue the rideshare company directly. They have structured their arrangements with drivers in ways that insulate the company from vicarious liability. However, if injuries were caused by something that is the fault of the company rather than the individual driver, then an injury attorney may be able to pursue a successful claim against Uber.

Do you need a lawyer if Uber’s insurance has already offered you a settlement?

While you could accept the settlement offer without consulting an attorney, it is not a good idea because the insurance company usually will not offer an amount that is appropriate to the value of your losses until after they’ve seen that you are prepared to win if your case were to go to court. This takes time and legal negotiation. It is helpful to talk to an attorney before accepting to find out the value of your claim. Then you can decide whether to accept right away or negotiate for the full amount.

Experienced Legal Advocacy Makes All the Difference When an Accident Involves Uber Insurance

Uber offers high-value insurance, but getting the insurance companies to pay out on a claim is a very difficult process. At the Law Offices of Benjamin Arsenian, we know how to succeed against corporate insurance teams and recover full compensation for rideshare accident victims.

To find out more about the value of your claim, schedule a free consultation with us by calling 714-400-2000 or contacting us online today.