Ridesharing is growing in popularity, but you might wonder if you were ever in an accident while riding as a passenger in a ride-share vehicle if your injuries would be covered. When an individual is operating their vehicle as a rideshare vehicle, they are not using it for personal use.

 

In most cases, if a driver is transporting people for pay, their traditional auto insurance coverage will not take care of the damages suffered from the crash. That probably leaves you wondering where you will recover compensation for your injuries and other damages if you are hurt while riding as a passenger in a ride-share vehicle, such as an Uber or Lyft-affiliated car.

 

Whose Insurance Will Pay?

As previously mentioned, private auto insurance won’t cover damages caused in a crash if the vehicle was used for business purposes. The ride-share driver’s insurance will cover your damages if they have commercial auto insurance coverage. Unfortunately, many rideshare drivers don’t have the proper insurance coverage themselves to handle injuries sustained in such crashes.\

 

Their personal policy will most likely have a “business use exception” that will keep it from covering your damages after they learn you were a paying fare. And, depending on the commercial policy, your damages may or may not be covered. Some commercial policies aren’t designed to provide coverage for transporting paying passengers. For commercial auto insurance to cover a rideshare passenger, it will need to have a rider that allows for paying passengers.

 

The rideshare company, such as Lyft or Uber, carry third-party liability insurance coverage, which will pay up to $1.5 million for personal injuries, property, and damages. Usually, these insurance policies only kick in after the driver’s policy has been exhausted, assuming the driver has a valid and applicable policy. As a passenger, you are covered by the rideshare company’s liability policy if the rideshare driver is to blame for the crash that caused your injuries and damages.

 

North Carolina passed a law in 2015 that says when the rideshare app is on in the car; regardless of whether there is a passenger being transported that the rideshare company’s insurance is the primary coverage.

 

Recovering Your Damages

If your rideshare driver caused the crash, their car insurance will cover the damages. If the driver has commercial car insurance or they have a special ridesharing provision on their personal insurance coverage, their insurance will pay for your damages. Most rideshare drivers don’t have that coverage on their own.

 

When the rideshare driver is carrying a passenger and logged into the system of the rideshare company that they work with, they must have at least $1.5 million liability coverage for death, bodily injury, and property damage. They must also carry PIP and uninsured/under-insured motorist coverage.

 

When they are logged into the rideshare system waiting for a paying passenger or going to pick one up, the drivers are required to have liability coverage, PIP, and uninsured/under-insured coverage as well, but the coverage amounts don’t have to be as high. The rideshare company as part of the agreement provides this coverage with the driver. In that case, you will recover your damages, such as your medical expenses and lost wages, from the rideshare company’s auto insurance company.

 

If the rideshare driver wasn’t at fault, and another driver was to blame, then his or her auto insurance policy is liable for the damages that resulted from the crash. You will have to file a claim against the other driver to recoup your losses. If that driver is not insured, you will then have to pursue a claim with uninsured motorist coverage.

An accident while riding in a rideshare vehicle can result in various damages, including medical expenses, lost wages, and property damages. These costs can add up fast, so auto insurance is a necessity to help you with those unexpected expenses.

 

Rideshare Driving Is Regulated In North Carolina

Rideshare has been regulated in North Carolina since 2015. The legislation enacted requires $1.5 million liability coverage and, also requires drivers to undergo a background check. The law has many requirements, which are all designed to help protect the passengers who ride in rideshare vehicles. You can now take a ride in an Uber or Lyft and know that you are covered by auto insurance in case of an accident.

 

To learn more about auto insurance, contact the professionals at with ProtectiveAgency.com at (877) 739-9367. Our licensed insurance team of friendly agents will be happy to answer any questions you have.