Lyft Driver Injured in a Car Accident? Claims, Insurance Issues

Lyft drivers may be entitled to compensation if they’re hurt in an accident. Each state has different laws that apply to Lyft driver accidents.

This article focuses on a Lyft driver’s claim for an accident in Florida.

This article doesn’t focus on Lyft passengers’ claims against another driver in Florida. Here, I won’t talk about cases where a Lyft driver’s negligence caused your accident.

Unless I say otherwise, assume that I am referring to Lyft drivers and accidents in Florida.

Will Lyft pay a Lyft driver’s medical bills from an accident in Florida?

Maybe. It may depend on one or more of the following factors:

Date of the accident
Type of insurance coverage
Who is at fault.

Let’s look at the different types of insurance coverage that may apply.

Currently, Lyft Drivers Always Get Lyft’s PIP Insurance

Currently, Lyft drivers get up to $10,000 of Personal Injury Protection (PIP) insurance in Florida.

If Engaged in a Ride, Lyft Likely Won’t Have PIP Starting on July 1, 2017

However, starting on July 1, 2017, while a Lyft driver is engaged in a ride, Lyft only has to provide auto insurance that meets the minimum coverage amounts required of a limousine. Florida Statute 627.748(7)(c)1.b.

In Florida, limousines aren’t required to have PIP. This means that Lyft won’t have to provide PIP to its drivers while they’re engaged in a ride.

However, Lyft has chosen to keep PIP on its insurance policy.

When Logged Onto App, But Not Engaged in a Ride, Lyft Driver Gets Lyft’s PIP

If the Lyft driver gets into an accident while logged on to the app but before accepting a ride, Lyft’s PIP insurance applies. The same is true if the accident happened after the rider exited, so long as the app is on.

Will a Lyft driver’s personal car insurance pay for medical bills from a crash?

It depends on several factors.

If the Lyft driver has personal auto insurance, and gets into an accident after accepting a ride but before the rider exits, his personal PIP will deny coverage. The same result will likely apply even if the Lyft driver has personal car insurance with rideshare coverage.

Companies like Farmers Insurance have begun selling insurance for rideshare drivers. (Foremost, and Bristol West Insurance Group, are part of Farmers.)

If the Lyft driver has personal car insurance with rideshare coverage, and gets into an accident while logged onto the app but before accepting a ride, his personal PIP insurance should apply. The same is true if the accident happened after the rider exited.

If the Lyft driver has personal car insurance without rideshare coverage, and gets into an accident, it will deny coverage. The reason for the denial will be that the vehicle was being driven primarily for work purposes.

Will a Lyft Driver’s Health Insurance Pay His or Her Medical Bills?

A Lyft driver’s health insurance will pay for medical expenses according to the terms of the contract.

If a Lyft driver’s health insurance pays his medical expenses, he will likely need to pay back the health insurer from the settlement (with the at fault parties).

The health plan may be required to reduce its reimbursement claim by attorney’s fees and costs.

If they are required to reduce by attorney’s fees and costs, this is an added benefit that a Lyft driver won’t get without a lawyer.

Who Will Pay a Lyft Driver’s Lost Wages from a Car Accident?

Determining who pays a Lyft driver’s lost wages will depend on the state where the accident happened. To illustrate, I’ll use a Lyft accident in Florida.

Since day 1, Lyft has had PIP on its cars in Florida. Thus, Lyft drivers are covered for 60% of their lost wages with Lyft’s PIP. This is true whether or not the Lyft driver was engaged in a ride at the time of the crash.

Lyft is not required to have PIP insurance on its cars when the driver is engaged in a ride. Florida Statute 627.748(7)(c)1.b.

However, Lyft still has PIP on its cars in Florida. Lyft is generous in this regard.

The Lyft driver can claim the remaining 40% of his lost wages against the other driver. This assumes that another driver’s negligence caused the crash.

If the at fault vehicle is uninsured, the Lyft driver can make a claim through Lyft’s uninsured motorist (UM) insurance. Lyft’s UM insurance is with Greenwich Insurance Company. York Risk Group handles Greenwich’s UM claims for Lyft drivers.

Lyft’s insurance used to be with Zurich American Insurance Company.

However, if Lyft driver was logged onto the app, but not engaged in a ride, Lyft’s PIP insurance should pay 60% of the Lyft driver’s lost wages. Lyft’s insurance won’t pay more than $10,000 in medical bills and lost wages.

Is a Lyft Driver Entitled to Compensation for Pain and Suffering?

Yes, if someone other than the Lyft driver caused the crash. If the Lyft driver was engaged in a ride, he won’t have to meet the tort threshold in order to get compensation for pain and suffering.

This will make it easier for the Lyft driver to get a pain and suffering payout.

If the Lyft driver wasn’t engaged in a ride, but was using the app, he will likely need a threshold injury in order to get money for pain and suffering. In most cases, this will make it harder for the Lyft driver to get a pain and suffering payout.

What Compensation Can a Lyft Driver Get for a Crash?

Assuming that another driver’s negligence caused the crash, a Lyft driver may have a claim for compensation for:

Past Lost Income
Future lost income reduced to present value
Past out of pocket medical expenses or medical liens
Future medical expenses
Replacement value of lost personal property (e.g. damage to your car, broken glasses, watch, etc.)
Funeral expenses
Reimbursement for mileage to and from medical appointments
Past Pain and suffering
Future Pain and Suffering
Disability
Scarring and disfigurement
Mental anguish
Loss of capacity for the enjoyment of life.
Punitive Damages (in rare cases)

Is Lyft’s Insurance Company Fair to Lyft Drivers in Accidents?

My experience with Lyft’s old insurer, Zurich, was good. However, I represented a Lyft passenger in my $45,000 settlement with York (Zurich). The entire case settled for $70,000.

I think that the settlement would’ve been the same if it was the driver who was injured.

Is Lyft’s new insurer, Greenwich Insurance Company, fair?

Time will tell.