New York Uber Rideshare Insurance
Uber is what is known as a “ridesharing company.” Despite sharing similarities with taxi services, rideshares are classified as a Transportation Network Company (TNC) under the New York State Vehicle and Traffic Law. A TNC is a business licensed by the Department of Motor Vehicles to connect passengers to TNC drivers through a digital network. In Uber’s case, this digital network is their mobile app that allows riders to hail a nearby driver for a ride.
TNCs operate differently from other types of businesses, and therefore follow unique insurance regulations. Uber has its own corporate insurance policy in place, which can sometimes be confusing to the average rideshare driver or customer. In addition, Uber rideshare insurance laws differ in New York when compared to other states in the U.S.
The amount of insurance coverage available to drivers, passengers, and other motorists will depend on the status of the Uber driver at the time of a car accident. To ensure you’re covered if you choose to drive for or use Uber’s platform, it’s important to understand rideshare insurance. If you’ve been injured in a rideshare collision, call (844) 444-444 today to speak to an Uber accident lawyer.
Here is a breakdown of Uber’s car insurance policy for the state of New York.
Off duty Uber drivers
An Uber driver is offline if not logged into the Uber app at the time of a car accident. According to Uber’s group ridesharing insurance policy, when a TNC driver is off duty, they are “subject to state financial responsibility laws.” This means that Uber does not provide any motor vehicle insurance coverage for their drivers during an offline period.
If an Uber driver is off duty when involved in a car crash, they must rely on their personal auto insurance.
Uber drivers on a prearranged trip
An Uber driver is considered “online” if he or she is logged into the app and accepted a trip request. The driver may be traveling to pick up or passenger, or driving a passenger to their destination. In either context, as long as he or she has accepted a ride request through the app, he or she will be covered by Uber’s group rideshare insurance policy.
In New York, Uber will provide the following insurance coverage for drivers on prearranged trips:
- $1.25 million of liability insurance per accident: This coverage protects third parties that an Uber driver may be liable to following a motor vehicle accident.
- $1.25 million of supplementary uninsured/underinsured motorist bodily injury insurance per accident: This protects the occupants of an Uber vehicle if they are injured in a car accident caused by a motorist who is uninsured or underinsured.
- No fault coverage: Required by New York State, this coverage provides all occupants of an Uber Vehicle up to $50,000 for medical expenses, lost wages, and other damages resulting from accident-related injuries.
- Contingent comprehensive/collision insurance: An Uber driver will only receive this coverage if he or she maintains personal comprehensive and collision insurance. If so, in the event of an accident, Uber will offer physical damage coverage for a vehicle up to the cash value of the damages, or the cost of a vehicle repair (whichever is less), with a $1,000 deductible.
Uber drivers between trips
When an Uber driver is online but is neither on the way to pick up a passenger, nor transporting a passenger, Uber’s $1.25 million liability coverage will not apply to the car accident. Instead, the Uber driver will be insured by a limited amount of bodily injury insurance coverage.
Uber’s ridesharing policy for drivers that were between trips when an accident occurred includes:
- Liability coverage: This includes $75,000 of bodily injury insurance per person, and $150,000 per accident, together with $25,000 for property damage.
- Uninsured motorist bodily injury insurance: This protects the occupants of an Uber vehicle if they are injured in a car accident caused by a motorist who is uninsured or underinsured. Coverage includes up to $25,000 in bodily injury liability per person/$50,000 per accident, and $50,000 per person for a fatality/$100,000 per accident for fatalities.
- No fault coverage: New York State requires that all occupants of an Uber Vehicle have coverage of at least $50,000 for medical bills, lost income, and other potential damages.
Personal Rideshare insurance for New York Uber drivers
Uber’s rideshare insurance policy allows a period of time where drivers are at risk of being underinsured in the event of a car accident. Specifically, Uber drivers may receive limited coverage when he or she driver is “online,” but between trips.
To guarantee that they are fully insured, some Uber drivers opt for some type of commercial auto insurance. This insurance covers rideshare drivers who use their personal vehicles to work for Uber. Uber drivers can purchase supplemental “rideshare insurance.” This type of insurance is a hybrid of private and commercial car insurance—it can be added onto a personal insurance policy for an additional fee. While not all policies offer the same amount of protection, many rideshare insurance options may fill in the gaps in your coverage.
Uber rides in New York City are regulated by the NYC Taxi and Limousine Commission. For this reason, commercial insurance is legally required for NYC Uber drivers.
Contact an Experienced Uber Rideshare Accident Lawyer
If you have been seriously injured in an Uber rideshare accident, and are struggling to find a source of insurance coverage, contact William Mattar law offices. Our car accident lawyers are experienced in helping car accident victims file insurance claims and receive the compensation they deserve. For a free and confidential consultation, call (844) 444-4444.