Ridesharing services like Uber and Lyft have essentially taken over the “ride-hailing” industry, and lately, many people prefer them to taxis or other limousine companies because of their reliability, accessibility, and affordability. These services quickly became popular in New York City, however, outside of the city, these companies only recently became available because the laws had yet to be adjusted to this new transportation medium.
One of the most significant reasons for the delay in these services being offered statewide had to do with insurance coverage. When New York State allowed for the expansion of ridesharing services beyond the City in June 2017, the legislature also required an update to the laws regarding no-fault insurance. The new laws provide that Uber and Lyft — and other ridesharing companies — drivers be covered by group ridesharing insurance that also covers the passenger/customer of the service.
Because these companies typically do not have commercial vehicles and the drivers use their own personal cars, it was undetermined who should be providing insurance. The new law requires that ridesharing companies provide vehicle liability insurance for $1.25 million when driving a passenger in addition to workers compensation for their drivers.
Further, ridesharing companies will be required to abide by New York’s no-fault system which requires vehicle owners to carry insurance with $50,000 minimum limits to cover basic personal injury losses including:
- Medical expenses
- Loss of income up to $2,000 per month for three years
- Out-of-pocket expenses up to $25 a day for one year
These coverages are applied to both the driver and the rider throughout the duration of the ride.
Typically, the driver’s personal insurance policy will not provide coverage for incidents occurring while the driver is providing the ridesharing service, which is why it is important that the rideshare company itself provides coverage to its driver. This coverage begins when the driver is on his or her way to pick up the passenger and also covers the passenger once in the vehicle. The rideshare companies Uber and Lyft do not provide coverage when the employee is driving the vehicle for personal use.
If you or a loved one has been injured in a rideshare accident, it is important to contact an experienced car accident injury lawyer who can inform you of your legal rights and remedies. The personal injury attorneys at Goldberg Sager & Associates represent New Yorkers who have been injured in auto accidents and other types of vehicle crashes. For more information or to schedule a free initial consultation, contact our Brooklyn car accident lawyers at 718-645-6677.
