DeWitt Law Firm - February 2020

DeWitt Law Firm - February 2020

The

Digest

DeWittLaw.com

FEBRUARY 2020

407-245-7723

THE LIMITS AND RESTRICTIONS OF RIDE-SHARE INSURANCE ARE YOU COVERED IN A RIDE-SHARE CRASH?

Services like Uber and Lyft have understandably dominated the ride-sharing market thanks to their convenience, accessibility, and cost-effectiveness. Gone are the days of thumbing it for a taxi because now, you can summon an Uber or Lyft to your location with a few keystrokes. However, if you’re in an accident while using this type of transportation, you need to know the risks associated with ride-sharing. Like any other car accident, the driver at fault holds liability. If the ride-share driver is found at fault, their personal insurance policy will not cover the damages because most insurance policies contain a business-use clause — meaning if the vehicle is being used for business rather than personal use, the insurance policy does not apply. However, the Florida legislature sought to remedy this situation back in 2017 when it passed a law requiring all ride-share drivers to carry $1 million dollars in bodily injury and wrongful death insurance. However, it is important to be aware of how these insurance laws work in order to ensure that you are properly covered while in an Uber or Lyft. First, if the driver is not logged into the ride-share app and gets into an accident, then the $1 million ride-sharing insurance policy mandated does not apply. If the driver is simply driving their vehicle for personal use, even though they sometimes use the vehicle as a ride-share, his or her personal insurance coverage would apply. Second, if the driver is logged into the ride-sharing app but has no existing ride requests, then the ride-share company can provide limited coverage — usually up to $50,000 for bodily injury per person and up to $25,000 for property damage, with a cap of $100,000 per incident. However, if the driver accepts a ride request and gets in a car accident while logged into the ride-share app, then victims may have coverage up to $1 million from the ride-share company. Whether you’re a ride-sharing driver, passenger, or another driver on the road, navigating insurance claims involving Uber, Lyft, and similar companies can be complicated. If you are traveling in a ride-share vehicle, make sure the driver is always

logged into the app. If you agree to pay him cash for a ride outside of the app, then there may not be insurance coverage should an accident occur. Further, ride-share companies gather >Page 1 Page 2 Page 3 Page 4

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