5 Things You Need To Know About Chicago Rideshare Insurance Coverage

chicago rideshare insurance policies coverage

Drivers who use their cars to pick up or drop off passengers for a ride-hailing company are classified as "commercial carriers". This is because they use their vehicles to transport other people, the company doesn't employ them, and they run a business. The rideshare insurance coverage available to them is an individual policy that covers accidents that happen while on a trip where the driver is carrying passengers. Those involved in a rideshare accident have the same rights to collect compensation for their injuries as passengers in any other accident. Still, you should know 5 main things to ensure you get the right amount of coverage in your insurance policy. 

The 5 Things You Need to Know About Chicago Rideshare Insurance Coverage 

1. Rideshare Drivers Are Not Automatically Covered By The Company's Insurance 

Rideshare companies have insurance policies covering accidents while drivers are transporting riders. However, they only cover incidents while the driver is engaged in a trip. If the accident occurs when they are driving to pick someone up or dropping them off, they will be personally responsible for paying any medical bills or repairing any damage to their car. 

2. The Rideshare Insurance Coverage That You Are Eligible For Is Dependent On The Company 

If you drive with Uber or Lyft, you are eligible for rideshare insurance from The General. If you go with Getaround, WazeCar, Chariot, Sidecar, or Gettolleksen, these companies have policies that cover passengers during trips when drivers are transporting them. 

3. You Are Only Covered For Injuries And Property Damage Incurred In The Accident 

Rideshare accidents will be covered by the rideshare insurance coverage available to drivers. It is essential to remember that covering injuries and property damage is an important consideration when choosing a rideshare policy. The value of each driver's assets will be included in the calculation of any amount the company decides to pay as compensation for your injuries or damage. Uber, Lyft, Sidecar, and Getaround are among the companies that have been sued by drivers claiming they were unfairly denied compensation after accidents. 

4. You Must Notify The Company About The Accident Within 24 Hours Of It Happening 

If you are a driver and you are involved in an accident, you will have to report it to your rideshare company as soon as possible. Your car insurance policy will not cover injuries or property damage unless you file a claim with your rideshare company immediately after the accident. If you wait more than 24 hours to file, your insurance coverage will kick in, and you will begin paying a portion of any medical bills or damages. 

5. You Are Only Eligible For A Lump Sum Payment Or A Daily Benefit If You Are Covered Under The Company's Insurance 

Suppose your policy covers you, and you have had an accident during a trip. In that case, your rideshare coverage will only pay for injuries and property damage during the journey. Drivers are not eligible for additional compensation if they collect from the company's insurance or their personal policy. Those who use their car to pick up passengers for companies such as Sidecar, Get around, and Chariot will not be eligible for any additional compensation beyond the value of their vehicle. 

Rideshare drivers who are currently carrying passengers are classified as carriers for their insurance. The ridesharing companies' policies cover them, but this does not guarantee them compensation for damages in the event of an accident. After an accident, they must notify their rideshare company within 24 hours, and they are only eligible for a lump sum payment or daily benefit if the company's insurance covers them.

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