Fatal accident puts more focus on ride share insurance coverage
A fatal car accident in California may put ride share company Lyft’s auto insurance to the test. The company has been under heavy scrutiny recently regarding its insurance coverage. Some lawmakers have questioned whether Lyft’s coverage was adequate enough to cover accidents and any damage that would be caused by such events. Some had introduced new legislation that would hold ride share companies to higher insurance standards, and these companies had been heavily resistant to such legislative efforts in the past.
Lyft’s insurance policy should be enough to cover the damage caused by the accident
Late last week, Shane Holland lost his life when the Lyft car he was riding in was involved in an accident. Another passenger and the vehicle’s driver were also injured in the event. This is the first fatal accident in the company’s 2 year history and has placed Lyft under more scrutiny. The matter is currently under investigation in order to determine where fault lies, but the company’s insurance policy may be able to cover the accident entirely.
_________________________Random Quotes to Remember ~ “The best investment is in the tools of one’s own trade.” – Benjamin Franklin
Lyft policy offers $1 million in liability coverage and $1 million in uninsured/under-insured coverage
Lyft currently offers $1 million in liability coverage for its drivers, as well as $1 million in uninsured/under-insured coverage. State law requires that drivers carry no less than $30,000 in coverage for injury and death of multiple people. The company’s policy should be enough to cover everything involved in the accident, even if the party found at fault does not have the insurance needed to cover the accident.
Legislation holding ride share companies to higher standards goes into effect next year
New legislation that holds Lyft and companies like it to a higher auto insurance standard will go into effect on July 1, 2015. According to this legislation, a ride share company’s auto insurance coverage will go active when a driver is logged into their company’s mobile applications. This coverage will be active even before a driver is matched with a rider. Ride share companies had opposed this law before it was passed, but many of these companies rescinded their oppositions when changes were made to the legislation.