The emergence of rideshare platforms like Uber and Lyft has created a seismic shift in the taxi industry. Those looking for a ride no longer must hail a cab or call a car service. Rideshares have proven less expensive than traditional taxis and generally more convenient. Nevertheless, driving is still a dangerous activity here in the Bay Area and across the country.
Those who recall sitting in the back of a cab likely spotted an ID and some official paperwork. Some of that paperwork may have been proof of insurance for a commercial vehicle. There were other regulations and requirements as well, which added to the operating expenses.
Rideshare drivers do not use this type of insurance, but they must carry special multi-level insurance. This is the law and provides some peace of mind for paying passengers, other drivers, pedestrians and people on bicycles.
How coverage works
The state puts the driver’s coverage into periods that are based on the driver’s status at the time of the collision:
- Period 3: The client hired the driver and is in the vehicle.
- Period 2: The client hired the driver, but they are waiting for the driver’s arrival.
- Period 1: The driver has their app open but has no fare.
- Period 0: The driver is not working and is using their personal insurance.
Companies may dispute claims
It is common for insurance carriers to dispute such details as who is at fault or the injury’s severity, plus the rideshare company may also seek to transfer liability. This slows down the resolution of an injury claim, leaving the victim and their family in limbo. In cases such as these, the victim may need to fight to get the settlement they deserve.