Ridesharing is one of the most popular ways to get from Point A to Point B, especially in Boston. Taxi cabs are increasing their prices, the subway is overcrowded, and having a car is not always a financially smart move. Ridesharing is a fast and convenient way to get around the bustling city of Boston without waiting for buses, trains, subways, or bikes.
But, sometimes, things go wrong. With so many cars and congestion at an all-time high in metropolitan cities, accidents are frequent. Whether you are a driver or passenger, knowing your rights and insurance coverage while in a rideshare vehicle is key to receiving just compensation.
Auto Coverage for Rideshare Drivers
All states require a person operating a motor vehicle to have minimum liability coverage for their car, usually purchased simultaneously with the vehicle registration. Liability insurance protects the driver in the event of an accident when they are the ones who are at fault. The only drawback is these policies are only for people using their vehicles for personal use, not for commercial monetary gain.
If a person then begins using their own vehicle for commercial reasons, they need to purchase additional insurance policy that can cover them in the case of an accident. In most cases, the personal insurance carrier will deny a claim from a rideshare driver on their policy if they are carrying a fee-paying passenger or en route to pick up a passenger.
Therefore, rideshare companies must offer liability insurance for drivers—but there are some caveats. For most ridesharing companies, like Uber and Lyft, coverage only applies once the driver’s carrier denies the insurance claim. Thus, drivers must first submit claims to their own insurance company. If the driver’s policy denies the claim, the rideshare company is then the one financially responsible for injuries or damages to the vehicle.
Basically, rideshare companies offer tiered insurance liability protection. While a driver is offline, they have no protection. While they are en route to pick up a passenger, they have limited protection if personal insurance does not apply. The rideshare company offers third-party auto liability coverage if a driver has a passenger in their vehicle.
Understanding the insurance laws is key before you begin working as a transportation driver.
Uber
Uber requires users to sign a ‘Terms of Use’ agreement before they can operate the app.
Section 8 details the ‘Disclaimers; Limitations of Liability; and Indemnity’ set forth by the company regarding users using the app, deliveries, out-of-service areas, and off-the-clock clarifications.
Driver Insurance
Lastly, Uber provides insurance that helps drivers meet or exceed the necessary coverage in their state. When drivers earn with a transportation network company, they need to provide extra insurance to continue working —Uber provides drivers’ insurance, but what is covered depends on the incident that occurred.
Offline coverage: The driver’s personal auto insurance must cover them when they are offline for Uber. Drivers must maintain a minimum automotive insurance policy and provide proof to continue delivering with Uber.
Online coverage: Uber provides third-party liability insurance that covers –
- $50,000 per person and $100,000 per accident
- $25,000 in property damage
- Coverage for drivers and riders during a hit-and-run
- Personal injury protection (regardless of fault)
- Medical payment coverage (regardless of fault)
En route coverage: Uber provides comprehensive insurance for ridesharing and deliveries and purchasing Optional Injury Protection to cover additional medical expenses.
- Insurance covers $1 million for property damage and injuries when the driver is at fault.
- Covers car repair funds with a $2,500 deductible; extra insurance protects the driver’s car, no matter who is at fault.
- Coverage for drivers and riders during a hit-and-run
- Personal injury protection (regardless of fault)
- Medical payment coverage (regardless of fault)
Lyft
Due to the prevalence of participating drivers, Lyft is among the most popular rideshare apps worldwide, especially in Boston.
Tiered Insurance Coverage
Lyft provides driver insurance coverage, depending on the app’s status.
When drivers are offline, they must use their personal automotive insurance.
Drivers who are online and waiting for a request use Lyft’s third-party liability insurance. This insurance policy covers
- $50,000 for bodily injury per person
- $100,000 for bodily injury per accident
- $25,000 for property damage per accident
For Lyft drivers who are online and en route to pick up passengers, they have a higher-tiered insurance policy:
- $1 million for third-party auto liability coverage
- First-party coverage, including motorist coverage and underinsured motorist coverage
- Contingent comprehensive and collision coverage up to the car’s value (if the driver obtains comprehensive and collision coverage on their policy).
One stipulation for Lyft drivers is that Lyft still does not provide a primary liability policy—even while the driver is currently online and en route to pick up a customer.
When a Lyft driver is online with passengers in the vehicle, the insurance is the same as the tier mentioned above.
Automobile Liability Coverage: How Does it Work?
Many Lyft drivers and riders are curious about how automobile liability coverage works while they are in the vehicle. Lyft provides third-party auto liability insurance that acts as the primary coverage while a passenger is in the vehicle. In addition, drivers must maintain personal automotive insurance that meets the Massachusetts requirements. However, Lyft provides commercial auto insurance on behalf of its registered drivers.
Contingent Comprehensive Coverage: How Does it Work?
In addition to automobile liability coverage, drivers should be aware of contingent comprehensive coverage during their operating hours. Contingent coverage covers physical damage to the vehicle resulting from a non-collision event, regardless of who is at fault.
Curb
Curb uses yellow taxi cabs to keep the old-school spirit alive. Plus, it offers new customers $5 off their first ride and the chance to schedule rides ahead of time for only a $2 fee.
Driver Services Agreement
Curb provides a Driver Services Agreement to all drivers who sign up to use the Curb app and drive with the service. The Driver Services Agreement is a legally binding contract between the individual (the driver) and Curb Mobility LLC, the platform provider.
The Driver Services Agreement states the driver must defend the platform provider and its contract partners and hold them ‘harmless’ regarding any claims arising from accidents or incidents during trips the drivers perform using the app.
Furthermore, the Platform Provider and other regulatory agencies, such as relevant authorities and insurance companies, may obtain driver information if there is a complaint, conflict, or accident between the driver and a User.
Insurance
In addition to forfeiting the privacy of personal information, drivers who sign up and use Curb agree to maintain workers’ compensation insurance throughout their time working for the app. Depending on the specific local and state laws, drivers can possibly choose to insure themselves against potential injuries by maintaining accident insurance in place of workers’ compensation.
Drivers using the app must remember that their automobile insurance policy might not cover liability, collision, comprehensive, medical, personal injury protection, uninsured motorists, or other necessary coverage requirements while providing transportation services.
Liability
Lastly, and most importantly, Curb states in section 8.5 of the Drivers Services Agreement that the driver “shall be liable for, and indemnify and defend Platform provider and its Affiliates and Contract Partners from and against any and all lawsuits, claims, proceedings, actions, judgments, liabilities, losses, costs, or expenses suffered in connection with any accident or incident involving or arising from or in connection with the Transportation Services and/or your operation of any Vehicle, regardless of fault.”
In short, this means that drivers are the people who are liable for any lawsuits, costs, or expenses surrounding accidents while operating the vehicle as a Curb driver. Regardless of who was at fault for the accident, the Curb driver is the one who is responsible for any losses suffered.
Section 11 further clarifies Curb’s limited liability when it comes to driver’s actions while working for the company:
“None of the platform providers nor its affiliates or contract partners shall be liable under or in relation to or in connection with any of this agreement, the services, the driver apps, any device or any transportation services for any of the following…”
Get in Touch with a Rideshare Accident Lawyer Today
Policies, insurance claims, coverage, and liability can be confusing. Suppose you’re starting to drive with a rideshare company. In that case, the best move is to hire a ridesharing accident attorney to debrief you on the latest information regarding your legal rights while operating a vehicle.
Contact us at Sweeney Merrigan Law to know your rights as an Uber driver operating transportation services in Boston, Massachusetts. We are a reputable and well-versed personal injury lawyer firm that has built relationships with the public and our clients based on trust and confidence.
We can do the hard work of dealing with insurance companies and figuring out policies, as we know this can be confusing and time-consuming. Let us handle the legal paperwork and help you get back into the driver’s seat.
WATCH: Peter and Tucker Merrigan share invaluable insights for victims of car accidents who need legal help.
Related Blogs
- Most Dangerous Intersections in Boston
- Most Dangerous Intersections in Massachusetts
- Massachusetts Car and Booster Seat Laws
- Massachusetts Seat Belt Law
- Massachusetts Texting Law
Additional Resources
- CDC – Motor vehicle safety
- Federal Trade Commission – Guide to hiring a car accident lawyer
- MA Division of Insurance – What to do After an Accident
- Boston Municipal Court – Court Address & Resources
Local Boston Resources
AAA-Approved Auto Repair Shops in Boston, MA
- A-Z Service Station
1550 Commonwealth Ave
Boston, MA 02135 - Abe’s Complete Auto Service Inc.
317 Fresh Pond Pkwy
Brookline, MA 02445 - Jb Auto Care
291 Bridge St
Weymouth, MA 02191 - Preferred Automotive
511 Main St
Weymouth, MA 02188 - Island Street Automotive
203 Island St
Stoughton, MA 02072 - Broadway Gas & Automotive Car Care Center
320 Broadway
Cambridge, MA 02139
*Disclaimer – we do not endorse these companies or profit from having them listed on our website.
