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Are Uber and Lyft Required to Provide Insurance Coverage for Its Drivers and Riders?
In the era of ridesharing services, Uber and Lyft have revolutionized the way people commute — offering a convenient and affordable alternative to traditional taxi services. However, concerns about safety and insurance coverage have led many to question whether these companies are obligated to provide insurance for their drivers and/or passengers.
The good news is that “transportation network companies” like Uber and Lyft recognize the importance of providing insurance coverage for both their drivers and passengers. In recent years, they have implemented comprehensive policies to protect against liability, offer contingent coverage and safeguard individuals involved in accidents with uninsured or underinsured motorists.
Additionally, state and local laws impose certain insurance requirements on these companies to ensure adequate protection for all parties involved. While personal auto insurance policies remain a necessity for rideshare drivers, Uber and Lyft have taken additional steps to address potential coverage gaps and enhance the safety of their platform.
What Types of Insurance Coverage Do Uber and Lyft Provide?
- Primary liability insurance – Both Uber and Lyft maintain a primary liability insurance policy that covers their drivers while they are logged into the app and actively engaged in a trip or between rides. This coverage protects against bodily injury and property damage to third parties caused by the driver's negligence. Uber and Lyft’s third-party liability coverage provides up to $1,000,000 per incident.
- Contingent liability insurance – When a driver is logged into the app but has not yet accepted a ride, both Uber and Lyft provide contingent liability insurance. This coverage kicks in if the driver's personal auto insurance does not cover an accident that occurs during this period. The contingent liability insurance offered by Uber and Lyft generally provides lower coverage limits compared to their primary liability insurance policies.
- Uninsured/underinsured motorist coverage – Both companies also offer uninsured/underinsured motorist coverage to protect drivers and passengers in case they are involved in an accident with an at-fault driver who does not have adequate insurance. The coverage limits for uninsured/underinsured motorist protection can vary depending on the state and the driver's individual circumstances (up to $1,000,000 in Georgia while a driver has accepted a ride request or is actively transporting passengers).
What Are the Legal Requirements for Uber and Lyft in Georgia?
In the state of Georgia, ridesharing companies like Uber and Lyft are subject to specific legal requirements outlined in OCGA § 33-1-24. This law, known as the Transportation Network Company Act, establishes guidelines for insurance coverage and safety regulations for ridesharing services operating in the state.
The legal requirements for Uber and Lyft in Georgia, include:
- Minimum insurance coverage – OCGA § 33-1-24 requires Uber and Lyft to maintain primary automobile liability insurance coverage for their drivers. The law mandates a minimum coverage of $100,000 per incident for bodily injury or death and $50,000 for property damage when the driver is logged into the app and available to accept rides. When a driver has accepted a ride and is transporting a passenger, the minimum coverage increases to $1,000,000 per incident for bodily injury, death and property damage.
- Insurance disclosure – Uber and Lyft must provide drivers with a written disclosure of the insurance coverage provided by the companies. This disclosure should be given to drivers before they begin accepting ride requests on the platform.
- Background checks – The Transportation Network Company Act requires Uber and Lyft to conduct background checks on their drivers. Drivers are subject to both a national criminal background check and a search of the National Sex Offender Registry. The law sets certain disqualifying offenses that prohibit individuals from becoming rideshare drivers.
- Vehicle safety inspections – Uber and Lyft drivers in Georgia must have their vehicles inspected within 12 months of their initial registration as a ridesharing driver and subsequently at least once every 12 months. These inspections help ensure that vehicles used for ridesharing services meet the safety standards set by the state.
Legal requirements for Uber and Lyft in Georgia are subject to change, and drivers and passengers should stay up to date on the latest regulations and requirements in the state. If you’ve been involved in a rideshare accident as a driver or passenger, consult a local attorney to learn more about your rights.
If Your Claim Has Been Denied, a Georgia Rideshare Accident Attorney Can Help
Despite the many laws and regulations in place to protect Georgia’s rideshare drivers and passengers, as well as other drivers on the road, certain challenges can make the claim filing process difficult. If you have been involved in an Uber or Lyft accident and the rideshare company or insurer is denying your claim, one of our skilled accident attorneys at the Law Office of Rickard, Drew & Nix can fight on your behalf.
Contact our Atlanta office at (404) 588-1001 to schedule your complimentary consultation.
