In determining how much Lyft might pay in compensation for an accident victim, it must first be made clear that Lyft and its drivers have a written contract between them. Lyft’s drivers are independent contractors, not employees. That simple provision operates as a safety valve for the company to escape liability in the event that a Lyft driver injures a customer or anybody else in an accident that is caused by a Lyft driver’s carelessness and negligence.
Mandatory Insurance Regulations for Transportation Network Companies
Lyft and other businesses like it are known as transportation network companies (TNCs). Unlike traditional taxi cab companies, drivers are logged into an app, and customers use that app when they need a ride somewhere.
Before the California Department of Insurance implemented insurance coverage regulations for TNCs, drivers were only required to be covered by $15,000 of liability insurance per person and a total of $30,000 per accident. Such limits are woefully inadequate in a serious accident with serious injuries.
Now, California requires TNCs to carry the following minimum liability coverage during the following periods:
- $15,000 per person and $30,000 per occurrence when a Lyft driver isn’t logged into the app.
- $50,000 per person and $100,000 per occurrence when a Lyft driver is logged into the TNC app and awaiting a ride request from a customer.
- $1 million from the time that a customer enters the Lyft vehicle until the time that he or she exits at their destination. $1 million of coverage also applies for uninsured motorist and underinsured motorist coverage.
Who Handles Lyft Personal Injury Claims?
Nearly all Lyft personal injury accident claims are administered by well-known insurance companies, but the ultimate payor might be yet another insurer. It’s that insurer that makes the decision on whether to ultimately settle and how much to settle at.
The fact that you were a passenger in a Lyft vehicle that was in an accident doesn’t mean that the insurer is going to pay out $1 million in a settlement. Any insurance has a bottom line that it must meet to remain profitable, so its intention from the onset of a claim is to pay as little as possible on it. That’s exactly what you should expect if you approach a Lyft personal injury claim without an experienced and aggressive California Lyft accident attorney working on your behalf.
Contact a California Lyft Accident Lawyer Today
Martin Gasparian is the founder of the Rideshare Law Office. He represents victims of Lyft accidents throughout California. If you attempt to resolve a personal injury claim against Lyft, you can expect the insurance company to blow you off and treat you with indifference. Don’t let that happen.
As soon as you’ve been injured in an accident involving a Lyft vehicle, contact us to arrange for a free and confidential consultation and case review. If we’re retained to represent you, our objective will be to obtain the maximum settlement or award that you deserve.