In California all drivers of TNCs (transportation network companies), such as Uber, are required to have a rideshare insurance at all times when the app is on. When the app is switched on, the Uber driver’s time is divided into three periods. Uber then decides when its insurance is applicable based on the period the accident happened. Uber's insurance coverages work different ways depending on which "period" the coverage falls under as it may impact your Uber accident claim. The rideshare app is off: The driver's personal insurance is active, which must meet California's minimum auto insurance requirements.
California law has the following minimum auto insurance requirements while rideshare app is on but the driver hasn’t been paired with a passenger.
Uber’s rideshare policy isn’t applicable for accidents that take place before a driver accepts a passenger, since Uber considers drivers contractors rather than employees. Consequently, they are not responsible for what happens while the driver isn’t on duty.
Once there is a ride request from a passenger and the driver accepts it, this puts the driver in “on duty” status and Uber’s insurance coverage starts. But in case the driver gets in an accident before he picked up the passenger, it follows that the passenger would have to cancel the ride. This adds a layer of difficulty when claiming the insurance coverage.
The third period is the easiest one to claim insurance coverage from Uber. The passenger is in the Uber car, the driver is “on duty” and the Company must cover whatever happens during this period. Consequently once the driver has been paired with a passenger and after the passenger has entered the Uber car, the company is required to carry a $1 million liability insurance policy. Uber provides its drivers with $1 million of uninsured and underinsured motorist bodily injury coverage. It also provides comprehensive and collision coverage with a $1,000 deductible as long as the driver has collision coverage on his personal auto insurance policy. California law requires the driver to be covered by an auto insurance policy at all times. But since the TNC can help meet that requirement, not all rideshare drivers in California need to purchase rideshare insurance for driving legally. But, the driver may want to purchase an individual rideshare policy which will let to maintain some coverage, such as comprehensive, collision and medical payments, during the First period. Otherwise, the driver would have to pay the costs himself if he is injured or the vehicle is damaged in that period.
It is in your best interest to consult with a Los Angeles Uber accident lawyer about your claim before speaking with Uber or an insurance adjuster. This way you will have more leverage in settlement negotiations with Uber and Uber's insurance adjusters to get the compensation you deserve rather than getting lowball settlement offers. If you or a loved one have been injured in an Uber or Lyft accident we invite you to get in touch with our office. We are available 24 hours a day, 7 days a week.
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The rise of the app-based sharing economy has led to many insurance challenges. States like California have taken steps to protect consumers. From homesharing to ridesharing, the U.S. population is embracing the sharing economy. People frequently rent cars through platforms like Turo or use ridesharing services such as Uber and Lyft.
California Public Utilities Commission Regulating Ridesharing
California was the first state to regulate ridesharing services. It requires companies to obtain a license from the California Public Utilities Commission, provide a minimum of $1 million in insurance, conduct vehicle inspections, and offer driver training programs.
Liability Issues with Rental Sharing Economy Apps
When an accident occurs involving a vehicle rented through an app like Turo, liability issues may arise. California's AB 1871 bill specifically addresses liability for car-sharing. Under this law, Turo is considered the vehicle owner during the rental period. The law also prevents your insurance company from canceling your policy due to participation in car sharing.
Is Turo Liable for Insurance Purposes During the Rental Period?
The AB 1871 bill makes Turo liable for insurance instead of your personal coverage. Once the $1M insurance limit is exceeded, Turo becomes responsible. Turo must also indemnify you in any civil action, replacing your personal insurance unless the incident results from willful negligence. Turo’s Third-Party Automobile Liability Insurance includes property damage claims and Uninsured/Underinsured Motorist (UIM/UM) coverage.
California Turo Car Rental Accident Lawyer
If you’re involved in a peer-to-peer car rental accident in California, contact our experienced Turo car rental accident lawyer. Our attorneys have extensive experience securing significant settlements from insurance companies known for denying claims. We’ll thoroughly review your case to gather the necessary evidence. To schedule a free consultation, call KAASS LAW at (310) 943-1171 or contact us via our online appointment form.