Thursday, March 28, 2024
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Facts Uber and Lyft Riders and Drivers Need to Know

Need a ride? Rideshare companies can efficiently get you where you need to be. App based transportation network companies such as Uber and Lyft, provide rides while creating an opportunity for drivers to supplement their income at their convenience.

Despite the accessibility, there seems to be some ambiguity surrounding rideshare programs. GreatFlorida Insurance has provided some answers to common misconceptions to clear up the confusion.

Can ridesharing legally operate in Florida?

Yes. Florida lawmakers were set to address potential regulations for rideshare companies during the 2016 legislative season but it didn’t happen.

At the center of the controversy is insurance requirements. The Florida Department of Highway Safety and Motor Vehicles (DHSMV) has held the opinion that Uber’s insurance policies meet Florida law. After a lengthy court battle, Broward County also agrees. Some lawmakers believe rideshare drivers should carry a commercial auto policy similar to taxi drivers.

What are Florida insurance requirements for rideshare?

Florida drivers participating in ridesharing must have personal auto insurance.

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The coverage gap

It is critical for Uber and Lyft drivers to be aware of a gray area, also known as a coverage gap. This is the time period when drivers log into the rideshare app and are waiting for a passenger to enter the vehicle. If an accident happens during this time a driver could be uninsured or underinsured.

In this gap, a driver’s personal car insurance is responsible for damages. Unfortunately, many personal auto insurance policies would be likely to deny the claim because the driver is logged into the app.

Is insurance available to cover the gap?

Auto insurance covering Uber and Lyft drivers is extremely limited in Florida.

GreatFlorida Insurance works with an insurance carrier offering a rideshare endorsement on personal auto policies that fills the gaps most personal auto policies have when it comes to driving-for-hire,” says Mike Carcas, Coral Gables GreatFlorida Insurance Agent. “Commercial auto policies are an option as well, but tend to be more expensive and limiting when it comes to personal use.”

 Coverage provided by Uber and Lyft

Once a passenger enters the vehicle until they exit, Uber and Lyft will cover medical expenses and other damages up to $1 million. They also have added uninsured and underinsured motorist coverage.

During the time when a driver logs on to the app, to the time they pick up a passenger, Uber and Lyft will offer 50/100 limits to 3rd parties involved in an accident. They will not offer any collision /comprehensive coverage to the driver’s vehicle.

The rideshare companies offer limited coverage when a driver is in route to a passenger or driving a passenger. Coverage is based on the driver’s underlying personal auto insurance.

If you drive for Uber or Lyft, at GreatFlorida Insurance can make sure you get the proper rideshare insurance coverage for you and riders. Contact us today to discover all the auto insurance options available for you.

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Dustyn Shroff
Dustyn Shroffhttp://www.greatflorida.com
Vice President at GreatFlorida Insurance

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