Commercial liability auto insurance in Texas was never required drivers who work in the network of ridesharing programs, Uber and Lyft being the most popular. That was because drivers had, up until late 2014, when Houston legalized ridesharing companies. Prior to the passing, drivers were “unlicensed taxi drivers;” many of them were also using their own personal cars as well as personal auto insurance.
New Legal Insurance Requirements
According to section 46-508 of the ordinance, Uber and Lyft drivers are now required to carry commercial liability auto insurance of at least one million dollars for every accident. Prior to this, drivers who operated privately had to rely on their personal auto insurance. In the event of an accident and a lawsuit, the driver would not be covered, as insurance would not cover drivers who receive payment for transporting another person.
The law also requires private drivers to have the following minimums:
- $30, 000 per person
- $60, 000 per accident for any injuries
- $25, 000 for property damage
Ridesharing companies and apps make it easy and convenient for the average person to have a ride. Up until these were legalized, both driver and rider took an immense risk. Now that drivers can breathe easy and feel much safer. Yet the laws are still not perfect. Certainly, there may still be some snags in the plan.
There Are Still Some Drawbacks
If an Uber were to get involved in an accident while waiting for the next passenger, they would not be eligible to make a claim under their commercial auto insurance plan and Uber would not be held responsible. This is because, technically, the driver is not working directly for the company in that interim. They would hold that the driver’s personal auto insurance would be on the hook. There are many other ways drivers would not be covered under Uber’s insurance.
Because ridesharing laws are still being put into place and disputes may continue for some time, it is important that anyone who is injured in an Uber or Lyft accident, reach out to an attorney who can fully represent your interests.
If you have questions about insurance law and ridesharing companies, or if you sustained an injury from an accident, call our San Antonio car accident attorney at Daspit Law Firm to assist you with your claim.