How Rideshare Insurance Works in Florida

Rideshare services like Uber and Lyft have revolutionized how we travel, offering convenience and affordability for millions of Floridians. However, when accidents happen, understanding how insurance works for rideshare drivers, passengers, and other motorists can be confusing. Florida's rideshare insurance rules are unique and differ significantly from traditional car insurance policies. Knowing how these policies work is essential for protecting your rights if you’re involved in an accident. The Miami Uber and Lyft accident lawyers at Friedman Rodman Frank & Estrada are here to break down the complexities of rideshare insurance and help you get started on the path to recovery.

Rideshare drivers use their personal vehicles for work, but standard auto insurance policies typically exclude coverage for accidents that occur while a driver is using their vehicle for commercial purposes. To address this gap, Uber and Lyft provide additional insurance coverage for their drivers, but the coverage varies depending on the driver’s status in the app at the time of the accident.

Florida law establishes specific requirements for rideshare insurance to ensure that both drivers and passengers are protected in the event of an accident. Understanding how these requirements apply in different situations is crucial for knowing where to turn for compensation on account of your injury.

Rideshare insurance coverage in Florida is divided into three distinct periods, or phases, based on the driver’s activity in the app. For example, when a rideshare driver isn’t logged into the app, they are considered to be using their vehicle for personal purposes. In this case, the driver’s personal auto insurance is the only coverage available. If an accident occurs during this phase, Uber or Lyft’s insurance policies do not apply.

Once a driver logs into the rideshare app and is waiting for a ride request, they are considered to be in “Phase 1.” During this period, Uber and Lyft often provides limited liability coverage:

• Bodily Injury: Up to $50,000 per person
• Bodily Injury Per Accident: Up to $100,000
• Property Damage: Up to $25,000

This coverage applies only if the driver’s personal insurance does not cover the damages suffered. It’s important to note that this period typically excludes coverage for injuries to the driver of the rideshare service.

Once a driver accepts a ride request or has a passenger in the car, Uber and Lyft’s insurance generally provides more substantial coverage:

• Liability Coverage: Up to $1 million per accident for injuries and property damage to third parties
• Uninsured/Underinsured Motorist Coverage: Up to $1 million to cover injuries if another driver causes the accident and doesn’t have adequate insurance
• Contingent Comprehensive and Collision Coverage: This covers the driver’s vehicle if they carry personal comprehensive and collision coverage. The deductible is typically $1,000.

This enhanced coverage is in place to protect both passengers and third parties involved in accidents during active rides.

If you’re a passenger in an Uber or Lyft and are injured in an accident, you are typically covered under the company’s $1 million liability policy during the trip. This coverage applies regardless of who is at fault for the accident. However, disputes can arise about the extent of your injuries or the compensation you’re entitled to receive. It’s also possible that the $1 million policy is insufficient if multiple parties are involved.

Passengers should always report the accident through the rideshare app and seek medical attention immediately. Having proper documentation of your injuries and the circumstances of the accident is critical if you need to file a claim.

If another driver causes the accident, their insurance policy is typically responsible for covering your damages. However, Florida’s minimum insurance requirements may not fully cover your expenses, especially if the at-fault driver is uninsured or underinsured. In these cases, Uber and Lyft’s uninsured/underinsured motorist coverage can provide additional compensation for medical bills, lost wages, and other damages including pain and suffering.

While rideshare insurance policies are designed to offer comprehensive protection, disputes and gaps in coverage can still occur. Common issues include:

• Disputes Over the Driver’s Status: Rideshare companies may argue that the driver wasn’t logged into the app or wasn’t actively working at the time of the accident, which can affect the coverage it contends is available.
• Exclusions in Personal Policies: Many personal insurance policies exclude coverage for accidents that occur during rideshare activities, leaving drivers without coverage during Period 1.
• Denials Based on Fault: Insurance companies may attempt to limit payouts by disputing fault of their driver or the severity of injuries of passenger.

If you encounter any of these challenges, the Miami rideshare accident attorneys at Friedman Rodman Frank & Estrada can help you effectively bring a claim and advocate for the compensation you deserve.

Dealing with rideshare insurance claims in Florida can be difficult, especially when multiple insurance policies and parties are involved. At Friedman Rodman Frank & Estrada, we’re committed to helping injured individuals in Miami understand their options and fight for maximum compensation. Whether you’re a rideshare driver, passenger, another motorist, pedestrian, or cyclist, we’ll guide you every step of the way. To schedule a free consultation, call us at 305-448-8585 or complete our secure online contact form today. Our law firm does not get paid unless and until there is a financial recovery.