Transportation network companies (TNCs) such as Lyft originally relied on their drivers to insure themselves and their passengers in the event of an accident. The claim was that rideshare drivers were independent contractors who provided their own tools and were their own bosses. Drivers eventually revolted.
Today, if you are a rideshare passenger or another motorist and a rideshare driver injures you, a combination of policies provides coverage depending on the phase the driver is in. Insurance policy requirements for Lyft drivers in Paramus require them to carry the minimum coverage required by New Jersey law, and they can also add a rider to that coverage. What coverage actually includes and who provides it can be confusing, so if a rideshare accident caused your injuries, our rideshare wreck attorneys at Fredson Statmore Bitterman, LLC, can answer all your questions during a complimentary consultation.
What Insurance Coverage Must Lyft Drivers Carry?
All motorists, including Lyft drivers, must carry a minimum amount of liability coverage, personal injury protection (PIP), and uninsured motorist coverage. Liability covers medical treatment for injuries a driver causes to others and property damage. The minimum coverage is $35,000 per person, $70,000 per accident, and $25,000 for property damage. Liability insurance does not cover the driver’s own injuries or damage to the at-fault driver’s vehicle.
PIP covers the insurance holder’s medical expenses and lost wages at a minimum of $15,000, whether the holder did or did not cause the accident. Uninsured/underinsured motorist coverage pays a motorist’s claim if they are in an accident with another motorist who does not carry adequate insurance at a minimum amount matching the liability coverage limits. Although a rideshare endorsement is not an insurance policy mandate for TNC drivers, many add this gap coverage to their personal insurance policies in Paramus.
Rideshare Endorsement Insurance
Lyft and other TNCs provide commercial insurance for their drivers beginning when the app is on and the driver is waiting for a passenger to request the service. The driver’s personal insurance covers the periods when they are not seeking a passenger.
However, the amount of commercial coverage during the app-on phase may not be adequate if an accident that includes a large deductible occurs in this gray area. This is the coverage gap that a rideshare endorsement usually covers. Because this add-on can vary in price and coverage, Lyft drivers should consult with their insurers and disclose their desire to maintain insurance coverage when the TNC monitors the app.
Our personal injury attorneys make your free consultation feel personal. We may be a small firm, but we utilize the same resources as large firms, resulting in excellent outcomes for our clients. If you suffer injuries in a Paramus rideshare accident, we pay attention to details such as whether the at-fault Lyft motorist or another driver met state insurance policy requirements, and we tenaciously negotiate a suitable settlement for you.
Contact Our Paramus Attorneys About Insurance Policy Rules for Lyft Motorists
If you suffer injuries in a rideshare accident, you will find it stressful to negotiate an insurance settlement on your own. The driver must carry personal automobile insurance and may or may not have a rideshare endorsement, and Lyft or another TNC provides some commercial auto insurance depending on what the driver was doing at the time of the accident.
At Fredson Statmore Bitterman, LLC, we can alleviate the stress and confusion of dealing with insurers or filing a lawsuit for a personal injury claim. Our philosophy centers around the quality of your experience, not how big we can grow by rushing through a lot of cases. To discuss your accident, beginning with insurance policy requirements for Lyft drivers in Paramus, contact us now to schedule a free case assessment.
