What Are Rideshare Coverage Tiers and Why Do They Matter?

If you’ve ever used a rideshare service like Uber or Lyft, or driven for one, understanding their insurance coverage is crucial, especially if an accident happens. Both New Jersey and Pennsylvania have specific rules for rideshare insurance coverage that apply to drivers, passengers, and even other motorists involved in a collision with a rideshare vehicle.

Speaking with an experienced Bucks County personal injury attorney can help you get clarity and confidence about your next steps if you’ve been hurt in an accident. Legal professionals are available to help clients navigate the complexities of rideshare insurance claims.

 The Three Tiers of Rideshare Insurance Coverage

In both New Jersey and Pennsylvania, rideshare insurance is divided into three coverage tiers based on the driver’s status in the app. Each tier affects what kind of coverage is available in the event of a crash.

• Offline (personal insurance coverage). When a rideshare driver is not logged into the rideshare app, only their personal insurance is active. In this phase, if an accident happens, Uber or Lyft’s insurance does not apply at all, which means the driver’s own policy is responsible for covering damages.
• Available for hire (limited coverage). Once a driver is logged into the rideshare app and is waiting for a ride request, they are covered by limited liability insurance from Uber or Lyft. But this coverage may not include collision or comprehensive coverage, which can be problematic if the driver’s personal insurance excludes rideshare activities.
• En route and during rides (full coverage). When a ride is accepted, a driver is on their way to pick up a passenger, or is actively transporting one, full coverage under Uber and Lyft policies kicks in. This tier offers the highest level of protection.

Moving through or between insurance tiers while trying to heal can be daunting. There are professionals to assist you with the legal complexities of rideshare accidents in Pennsylvania and New Jersey.

Why These Coverage Tiers Matter to Passengers and Drivers

For passengers, you’re generally covered by the rideshare company’s $1 million liability policy if the accident occurs during the trip. For drivers, these tiers determine when a rideshare company’s insurance applies and to what extent. Since personal auto policies often exclude coverage for commercial activities, having rideshare company coverage in place often makes the settlement process smoother.

After a PA or NJ rideshare accident, whether you were involved as a passenger, driver, or another motorist, it’s wise to consult with a Bucks County personal injury attorney. Rideshare accidents can involve multiple insurance policies and complex liability issues, especially if it’s unclear which tier of coverage applies. An attorney can help you understand your rights, identify the responsible parties, and ensure that you’re pursuing all available avenues for compensation.

Where were you when you sustained a rideshare injury? Being aware of the type of insurance that will apply to your situation is part of protecting your rights. Have a conversation with the legal team at Kevin L. Hand, P.C. to learn more. Call 215-968-6602.