New York Drivers – an Uber and Lyft Update.

New York Drivers – an Uber and Lyft Update.

Lots of confusion in the insurance coverage for Uber and Lyft driver’s now allowed in New York State. So I will inform you of what you need to know and how it affects you. Almost ALL insurance companies in New York have an exclusion for using your vehicle in a “drive for hire” situation like a ridesharing employment. So the PRIMARY insurance while driving for Uber or Lyft is as follows:

Uber – While your app is ON it is $75,000 injury per person, $150,000 max. liability per accident and $25,000 of property damage. On your way to pick up an accepted rider and when driving them, the coverage changes to $1,250,000 a single limit for each accident and if you carry comprehensive and collision on your own auto policy (also excluded while driving in ridesharing), their deductible is $1,000.

Lyft – While your app is ON is $50,000 injury per person, $100,000 max. liability per accident and $25,000 for property damage.  Once a ride is accepted, then their coverage is $1,000,000 per accident and the comprehensive and collision coverage (if you have it on your own auto insurance policy) is $2,500 deductible.

Now once either app is turned off, then your own insurance policy is effective immediately. And I found out that if your own insurance company does know you are driving for Uber or Lyft, it is illegal for them to cancel or non-renew your auto insurance policy.

New York Drivers – an Uber and Lyft Update.

Now here is my professional opinion – if you are now using your auto for a ridesharing service and you own a home and have some assets to protect, buy a personal umbrella policy in case you get sued personally. In a severe injury situation (like a 2 month hospital stay for example) and you are at-fault, any good attorney will also come after you personally in a lawsuit. You are better off to have some insurance coverage and legal representation (defense costs) than none. Everyone’s drivers situation is different, so you have to weigh if your’s warrants added insurance coverage or not (the typical personal umbrella is an additional $1,000,000 of coverage). Maybe that is a yes and maybe that is a no.

Good luck if you are now driving for Uber or Lyft in New York State- I personally LOVE this service (used it in S.F., Chicago, Miami, Austin and Phoenix!)

 

Tom Larsen

 

 

 

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