Lyft, a popular ride-sharing application, has announced that it is increasing the auto insurance coverage for its drivers. Currently, the law in California only requires ride-sharing companies, like Lyft, Uber and Sidecar, to carry one-million dollars in car accident liability insurance. This is the insurance coverage that covers people who are injured in an accident caused by a driver working for one of these companies.
The law does not, however, require that the companies provide collision coverage, which is used to repair the vehicle damaged in a car accident, or uninsured motorist coverage, which would cover the driver and passengers of the vehicle, if the other driver causes the car accident and does not have coverage or does not have adequate coverage for the serious injuries suffered.
According to the Los Angeles Times, Uber has said that they have been providing collision and uninsured motorist coverage since December. Lyft is now offering its drivers the option of carrying collision coverage and uninsured motorist coverage. If covered, it is unknown how much uninsured motorist coverage these companies will provide for their drivers and customers.