Interview with a Lyft Driver Denied Medical After an Accident During an Active Lyft

Last week, one of my readers contacted me about her accident after I posted about how both Lyft’s and Uber’s Commercial Insurance doesn’t cover your medical bills even if you were not at fault. This occurred about two years ago so this was before both Lyft and Uber updated their insurance policies. However, this gap in medical coverage still exists, whether it was two years ago or it happened today.

Interview:

The Lyft driver wanted to stay anonymous so there won’t be any details about him or her in this post. Here was a recap of the interview:

So when did the accident happen?

It happened about two years ago.

How did the accident occur?

I was at a stop light. The driver behind me didn’t stop in time as the driver was texting and slammed into the back of my car. The driver stayed on the scene.

Where you in an active Lyft?

I was on my way to pick up the passenger.

What happened with the insurance?

The other driver was at fault so he was liable for damages to my car and myself. The car was fixed but he didn’t have enough insurance coverage left over to cover my medical bills. My own medical coverage paid for the surgery and hospitalization. It has taken me about 9 months to get back to work.

How did your personal health insurance cover an auto accident?

I drove myself to the hospital and didn’t mention the car accident or Lyft. My personal insurance wouldn’t have covered me if I told them I was doing Lyft.

What was the response from Lyft?

They told me that I was not covered for my car or my medical bills as the insurance was only for liability. [To recap, this insurance was the old policy. Now the new policy covers collision but still no medical coverage.]

How Insurance Works in a Lyft Or Uber Accident

Here are two main scenarios when you get into an accident; either you were at fault or you were not.

If you are not at fault:

If the driver remains on the scene and he/she has adequate insurance, the other driver’s insurance will be paying out damages to you. Lyft’s Insurance or your own personal insurance shouldn’t have to get involved. In most cases, it is recommended to report it to your insurance as they will help you track your claim and fight for your money. However, if you are not at fault and get into an accident, it is best not to report it to your own auto insurance company.

The other driver’s insurance will only pay out as much as that person has. If there is not enough for the full damages, then you can go to court and sue him personally. This is why liability insurance is so important because if you don’t have it, you could get sued and lose everything you own depending on the damages you incur.

If you are at fault:

You will be liable to pay for the damages to the third party, passengers, your own car, and your own medical bills (if you incurred any). Lyft’s commercial insurance will pick up your liability for damages to third parties and your passenger.

Damages of your car will be paid out by Lyft IF AND ONLY IF you have submitted those claims to your own personal auto insurance and they deny this claim. If they deny this claim, it is very possible that they will drop you as your insurer as you are using your vehicle for hire. You really can’t argue with them on this one as it is at their discretion to interpret what is for hire and what is not, even if you are working for Sidecar and they are on the donation model.

If your own personal auto policy denies your claim, Lyft’s insurance will cover your car, but only after a $2500 deductible. You will have to pay up to $2500 worth of damage before Lyft’s insurance pays for any of the damages to your own car.

If your own auto insurance already denied your claim for collision, they won’t be covering your medical bills either. Your fallback is your medical insurance. In the above accident, the Lyft driver was covered by the medical insurance.

How well are you insured? Have you thought about what to do in the case of a Lyft accident? Are you ready to pay up to $2500 to fix your own car? Do you have a plan that covers your medical bills?

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