Uber, Lyft and other TNC drivers are now covered by the company’s liability insurance at all times when they’re on duty — but could still be saddled with costly collision damages.
In response to new laws going into effect in 19 states July 1, Uber and Lyft both recently bumped up their liability insurance coverage to primary — meaning it steps in first, before other policies — for that on-duty-but-unmatched period, a no-man’s-land they had resisted covering for years.
That’s good news, but it still leaves many drivers partially uncovered. That new insurance is only for liability and doesn’t cover collision or other damages to the driver’s car.
Forbes article here