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Claude Wyle
Claude Wyle
Attorney • 888-787-5718

Becoming a Rideshare Driver: As an Attorney I advise Don’t Take the Risk Unless You are Sure that you are Adequately Insured

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Wannabe rideshare drivers beware, if you drive for Uber or Lyft, your insurance may not cover you.

Lyft, Uber, Sidecar, and the multitude of other rideshare services cropping up around San Francisco and the nation at large have attracted many drivers looking to make some extra money on the side. And although it may put some cash in your pocket, you may be using that cash if you get in a wreck while working.

The services run on “donation”, where users donate not for the ride itself, but for the “brokerage” of opportunity between the two parties. This relationship has been the cause of much debate, especially after deaths and injuries sustained by pedestrians at the hands of rideshare drivers have many calling for action, and insurance companies dumping their coverage.

Most auto insurance policies have an exclusion which explicitly denies coverage to a driver if they are operating a vehicle while transporting paying passengers. As the rideshare services are a commercial endeavor, the exclusion would likely be triggered if an accident were to occur.

Although Lyft’s website says their liability insurance is designed to cover liability for property damage and bodily damage of passengers and third parties, it fails to mention first party insurance, or insurance of the driver. No collision, comprehensive, or personal injury coverage is extended to the operator, leaving many drivers to potentially shoulder the bill.

If you’re looking to become a driver, remember, it is your obligation to report this to your insurance company. If you don’t, you may be denied coverage, or worse, have your current insurance canceled and be barred from renewal.

Rideshare services are dealing with insurance issues of their own, as Uber wades through its legal debacle after the wrongful death of 6 year old Sophia Liu, New Years Eve, 2013.

Rideshare services have refused to comment.

If you’re planning on driving, or are currently driving, for a rideshare, check with your insurance. You may be required to purchase a commercial policy. Check now, or be personally liable later.

 

Hello, I’m Claude Wyle, a San Francisco automobile accident attorney. Have an idea for a topic you’d like to see covered here? Feel free to contact me or visit www.ccwlawyers.com