Uber and Lyft carry a million-dollar liability insurance policy that covers claims against the rideshare drivers for causing injuries to their passengers or other drivers. Uber and Lyft also carry a million-dollar UIM policy to protect customers injured by an uninsured or underinsured third party that crashes into a rideshare car. However, if a rideshare driver is injured by another driver without insurance, the underinsured motorist coverage is the Texas minimum of $30,000. A rideshare driver’s personal automobile insurance policy will not provide coverage because personal insurance policies exclude coverage for driving for hire. Thus, rideshare drivers have only the automobile coverage that the rideshare company provides. Uber provides the cheapest UIM coverage possible for its drivers.
Uber provides an additional insurance coverage to drivers for an extra charge that is deducted from their income. This insurance policy is provided by Intact Insurance, and it is a horrible policy. It is a waste of money. Uber drivers should reject the extra insurance because it provides minimal coverage with many limitations and exceptions. For instance, it only pays medical bills as a last resort after health insurance and automobile insurance. Thus, the driver is paying extra for insurance that UIM already covers. Moreover, the Intact Insurance policy only provides $1,000 of coverage for chiropractic treatment. The Intact Insurance policy is a ripoff, and rideshare companies should be embarrassed to charge their drivers for the flimsy insurance policy.
Rideshare companies should provide a higher amount of UIM coverage for their drivers. Commercial truck drivers routinely are covered with a minimum of $75,000 of UIM coverage if not more. Uber and Lyft should match this minimum.
If you have been injured as a passenger or driver in a rideshare vehicle, contact the O’Hara Law Firm for a consultation. The O’Hara Law Firm represents clients on a contingency fee basis, so we are not paid unless we recover compensation for you. The O’Hara Law Firm has obtained compensation for rideshare customers and drivers