Lyft Updates Insurance to Primary, Collision Still Secondary
Now when you get into an accident in the middle of a Lyft, Lyft will be your primary insurance for liability. However, you will need to report it to your insurance company if you want to get your own car fixed under collision coverage.
Previously, both Lyft and UberX’s insurance served as the secondary insurance. This means that if you get into an accident in the middle of a trip, you will need to report the accident to your personal auto insurance. If your personal auto policy doesn’t cover it or doesn’t cover all of the damages, Lyft or Uber will cover the rest.
However, now when you are in an active Lyft and get into an accident, you can now report the accident directly to Lyft and their insurance will handle the liability portion of the claim.
There is no need to report it to your personal auto insurance! This is a huge change in the insurance policy. You will need to report it to your own insurance company for collision coverage in order to fix your own car, if you have collision coverage. If your insurance doesn’t cover your car for that incident, then Lyft’s coverage will apply.
If you are in the middle of an active Lyft (including going to pickup the passenger)
- Liability: Lyft Primary
- Collision: Lyft Secondary
If you are not in the middle of an active trip:
- Liability and Collision: Secondary
You can read about the full details here: http://community.lyft.com/2014/07/14/lyft-insurance-policy-update/
UberX’s policy is still secondary so if you do get into an accident, you will need to go through your personal auto insurance first. If they find out you were logged into Uber, then the insurance will deny your claim and may drop your coverage with them. Lyft’s change in insurance policy has wide implications and I hope this motivates Uber to change their policy or even motivate them to cover both liability and collision of your vehicle.
[Updated 7-22]: Uber updates insurance to primary coverage for liability and secondary for collision with a $1k deductible if you get into an accident during a trip on Uber. Read this post for more details.
See the below blog post about how the insurance policy works in all phases of a Lyft or Uber trip.
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