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Lyft and Uber drivers may need extra insurance coverage

Bbonez

Well-Known Member
http://www.fox9.com/news/lyft-and-uber-drivers-may-need-extra-insurance-coverage

Lyft and Uber drivers may need extra insurance coverage

Fox 9 News, St Paul, MN Jan 15, 2019

The St. Paul chill is no match for the sting single-mother Kelly Muñoz feels as she stares at deflated airbags, a jacked front tire, and major front end damage to her 2018 Jeep.

"It's not drivable," she explained.

The totaled SUV is parked in her friend's garage collecting dust.

"It's just so devastating," said Muñoz.

The full-time social worker and part-time Lyft driver's frustration is still palpable two months after she was struck by 23-year-old David Acosta-Rosario of St. Paul Park. Acosta-Rosario was later charged with speeding, driving without insurance and driving with a revoked license following an impact that wasn't without injury.

"I received a concussion, back and neck pain and currently still getting treatment for my lower-back pain," said Muñoz. "I'm currently seeing a physical therapist and chiropractor that I have to see three times a week."

Adding insult to injury, Muñoz is forced to rely on her own coverage for the $28,000 she owes on the Jeep.

"I've been battling back and forth with both insurances," she said.

While Lyft agreed to cover Muñoz's medical expenses, she says, it wasn't until after the crash that she learned she wasn't completely covered. At the time of the crash, Muñoz was logged into the Lyft driver app, but she didn't have a passenger with her and hadn't been matched with one yet. She also didn't have a "rideshare endorsement" included in her plan through American Family Insurance. Without a passenger and without the endorsement, neither company will accept her auto claim.

"Despite the fact that American Family Insurance is one of the top 10 insurance companies in this country, they don't even offer it to drivers of Lyft vehicles in Minnesota," said Muñoz's attorney, Howard Sussman.

"I believe Lyft has the most responsibility, because they were obligated to explain to Kelly in great detail both in writing as well as training their drivers, including Kelly, to make sure that there weren't any gaps in coverage," Sussman said.

Click the link above to read the rest of the story.
 
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Bbonez

Well-Known Member
  • Thread Starter Thread Starter
  • #4
If she didn't have a PAX she shouldn't have claimed it happened while the app was on, she would have been ALOT better off...
Most drivers are just ants and have no clue. If she followed your advice she could possibly be convicted of insurance fraud and get up to 10 years in prison along with fees, fines, & restitution in excess of the the value of her car. Is that a gamble most people are willing to take, maybe. But I have rideshare endorsement and will not be faced with that decision.
SmartSelect_20190115-111451_Samsung Internet.jpg
 

uberdriverfornow

Well-Known Member
If you are using your own car and it's more than $3000 or so, expect the worst, and the worst being someone hitting you while you're online with no pax which means Uber and Lyft's insurance won't cover your car and get rideshare insurance.

She can go after the pax, but normally when they don't have insurance that means they won't have any assets to go after. However, if she gets a judgment the license of the driver will be suspended until they pay the judgment.
 

Bbonez

Well-Known Member
  • Thread Starter Thread Starter
  • #6
She can go after the pax, but normally when they don't have insurance that means they won't have any assets to go after. However, if she gets a judgment the license of the driver will be suspended until they pay the judgment.
Is PAX still short for passenger? Fist of all she didn't even have a PAX in the car, but if she did I'm not sure how the PAX would be liable.
 

2Cents

Well-Known Member
They have the best of both worlds. They don't have to pay for vehicles on the road, You Pay for that. You pay for your own gas and insurance. They don't have to provide you with any benifits because you don't work for them oh and back to that insurance thing, well technically they didn't tell you to comit insurance fraud. You're supposed to have commercial insurance when you're engaged in commercial activities with your vehicle, but don't worry about that , their going to give you commercial insurance on that pick up that you're doing for them since you're paying for it out of your "booking fee"?

Ponz Much?
 

uberdriverfornow

Well-Known Member
They have the best of both worlds. They don't have to pay for vehicles on the road, You Pay for that. You pay for your own gas and insurance. They don't have to provide you with any benifits because you don't work for them oh and back to that insurance thing, well technically they didn't tell you to comit insurance fraud. You're supposed to have commercial insurance when you're engaged in commercial activities with your vehicle, but don't worry about that , their going to give you commercial insurance on that pick up that you're doing for them since you're paying for it out of your "booking fee"?

Ponz Much?
Most of that is true but this article details the fact that Uber and Lyft's insurance only doesn't cover your car during period 1, which is when you are online but not paired with a rider. Uber and Lyft's insurance does have great uninsured motorist insurance at 1 million dollars which is incredible because most people don't even have that to begin with.

However, they only cover your car during period 2 and 3 when you also have collision and comprehensive with your own insurance so you all better have it if you have an expensive car. I wouldn't be doing this gig with a brand new car to begin with unless you have actual rideshare insurance that covers your car during period 1.

Keep in mind that Lyft's deductible for your car during period 2 and 3 used to be $2500 but they just reduced it down to $1000 where Uber's has been.
 

SEAL Team 5

Well-Known Member
"I believe Lyft has the most responsibility, because they were obligated to explain to Kelly in great detail both in writing as well as training their drivers, including Kelly, to make sure that there weren't any gaps in coverage," Sussman said.
Where does it state that Lyft is obligated to inform anyone of any law? Another perfect example of passing the blame.

I'm sure that Minnesota has a free public law library just as every other state in the country does and Ms Munoz didn't bother to research anything before she decided to get her side hustle on. The precedence of Caveat Emptor will be stated and Kelly Munoz will be, how shall I say, Poop out of luck.
 

uberdriverfornow

Well-Known Member
Most drivers are just ants and have no clue. If she followed your advice she could possibly be convicted of insurance fraud and get up to 10 years in prison along with fees, fines, & restitution in excess of the the value of her car. Is that a gamble most people are willing to take, maybe. But I have rideshare endorsement and will not be faced with that decision. View attachment 289892
Make sure you know what your rideshare endorsement covers. Some only cover the deductible, some apply your entire coverage to rideshare as well, some only cover the portion that Uber and Lyft don't cover.
 

IthurstwhenIP

Well-Known Member
Was clearly David A fault . She should case him not Lyft. He likely would flee the country but let’s try holding accountability where it belongs versus always putting the tax back on companies.
 

TomTheAnt

Well-Known Member
Not trying to blame the victim here, but while I do agree that U/L should mention that people should check with their insurance company whether they are covered for rideshare or not, it should be just common sense for you to verify it yourself. Maybe I'm wrong...

I just started with U/L not too long ago and after checking with my insurer (AAA), I learned that they don't offer rideshare coverage, so I'm now in the process of moving my vehicle to Progressive. They offer the coverage and I already have my motorcycle insurance with them.
 
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