Lyft is a popular ridesharing option in New York. When a hailed Lyft ride turns into an auto accident, it’s important for those injured and impacted to understand the unique insurance process behind these claims. The amount of insurance coverage available from Lyft’s policy will depend on the phase or period of the ride.
Periods of Lyft Insurance Coverage
Under New York’s Transportation Network Company (TNC) laws, rideshare companies such as Lyft and Uber must carry at least $1.25 million in commercial liability insurance to pay for accidents involving their drivers. The limits on Lyft’s insurance policy change according to the period of the ride when the crash occurs.
Period 0
If the Lyft driver was operating his or her vehicle for personal use at the time of the crash, with the Lyft app turned off, Lyft does not offer any insurance coverage. Instead, the driver’s personal auto insurance policy will apply.
All Lyft drivers in New York must carry minimum amounts of personal liability insurance to pay for car accidents they may cause. New York’s no-fault law also means victims seek coverage from their own personal injury protection (PIP) insurance, regardless of fault.
Period 1
When the app is turned on and a Lyft driver is waiting to receive a ride request, Lyft offers the following amounts of insurance coverage in New York:
- $50,000 in personal injury protection coverage
- $75,000 per person in bodily injury coverage
- $150,000 per accident (two or more persons) in bodily injury coverage
- $25,000 per accident for property damage
Note that Lyft’s liability insurance policy will only apply after the Lyft driver’s (or other at-fault party’s) personal auto insurance has been exhausted.
Period 2
Once a Lyft driver has accepted a rider and is on the way to pick them up, up to $1.25 million is available in third-party liability coverage to pay for victims’ medical expenses and property damage, plus a matching $1.25 million in uninsured/underinsured motorist insurance. Supplemental no-fault coverage up to $50,000 is also available.
Period 3
When a Lyft driver has picked up a passenger and a ride is in progress, the full $1.25 million in accident liability coverage is available. The same policy limits apply in Period 3 as in Period 2. In addition, if a driver has comprehensive and collision coverage on a personal insurance policy, Lyft provides contingency coverage for the same losses up to the actual cash value of the vehicle, with a deductible of $2,500.
When Can a Victim Sue Lyft Directly?
It is rare to be able to file a lawsuit against Lyft as a company outside of an insurance claim. However, if there is evidence of company negligence or a lack of proper care in connection with an accident, Lyft may be held directly liable. If the company failed to properly background-check a dangerous driver, for example, this could provide grounds to sue Lyft for damages beyond what is offered on its commercial insurance policy.
How to File a Lyft Accident Claim in New York
If you get hurt in a Lyft accident in New York, it is in your best interest to consult with an experienced Lyft accident attorney to discuss your legal rights and possible recovery options. These cases are complex and abide by a different set of insurance laws than traditional car accident cases in New York. Assistance and representation from the right lawyer can help you maximize your financial recovery.