Many of us use the services of Uber or Lyft instead of a taxi (what the law refers to as “transportation network companies.”) Did you ever wonder what would happen if you were injured in a collision while a passenger in an Uber/Lyft vehicle?
If the Uber or Lyft driver caused the collision, recent legislation will help. Beginning in 2016, Arizona law requires that the Uber or Lyft driver, the company, or both, have minimum liability insurance coverage of $250,000 per incident when carrying passengers. For example, if Sally the Uber driver causes a collision and her passengers are injured, there would be a minimum of $250,000 per incident (not per injured passenger). So if Sally’s four passengers suffer injuries, the coverage would be fairly limited.
Fortunately, Arizona’s most popular ride share company, Uber (and as of recently, Lyft as well) provides $1 million of liability coverage for Uber passengers when the driver is at fault. While Uber is not required to carry underinsured motorist coverage, Uber carries $1 million of underinsured and uninsured motorist coverage. So if Drunk Johnny runs a red light and broadsides your Uber vehicle, and Drunk Johnny was uninsured or had minimal insurance, there would be additional coverage available with Uber. If your injuries were especially serious, then your uninsured/underinsured motorist coverages under your own policy would provide additional protection.
Another good reason to carry ample limits of uninsured and underinsured motorist coverages on your automobile policy.