First of all, it is important to state that rideshare drivers do not drive without full coverage. This means not only having the standard Lyft insurance package but adding a second one, a more comprehensive rideshare friendly insurance policy, which will be explained in this article.
Rideshare drivers know what periods are, but for the average passenger and reader as well as new driver these terms can be confusing. So here is a basic breakdown of periods and what is covered and by whom.
Period 1 is the period in which a driver is parked or driving without a passenger and a request. This can be at the start of a shift or after a drop-off.
Period 2 is the period starting from the moment a driver gets a request to the moment they pick up the customer.
Period 3 is the period that starts from the moment a passenger sits in the cab to the moment they are dropped off at the designated destination.
Lyft covers drivers during periods two and three for collision and liability only. They cover period one with limited liability only. This means that period 1 is the most dangerous time for a driver since they have no proper coverage. The period 1 coverage covers $50K for the person (bodily injury), $100K for the accident (bodily injury) and up to $25K for property damage.
If a driver is involved in an accident, they are covered but have a $2,500 deductible, which means the driver has to pay out of pocket this amount before the insurance will cover the rest, and the insurance coverage will only be according to the amount set in the policy. This is set at $1 million.
Lyft is not an insurance company; this means that after you contact Lyft with a claim, they will pass you onto Marsh Risk and Insurance Services which will pass you onto York Risk Services Group which are their insurance adjusters.
This means that no matter what happens, it won't happen quickly.
Let's take a look at the process and the timeframe for a claim.
Insurance Claim Timeline
These calculations are based on a real-time case.
June 14: The driver is involved in a rear-end collision with another vehicle. The immediate driver contacts the Lyft Hub about insurance coverage.
July 24: York Risk Services Group (YRSG) the insurance adjusters provided by Marsh Risk and Insurance Services contacts the driver with the initial settlement amount. The driver responds with a counteroffer but receives no reply.
July 29: The driver sends a second request for the counterclaim. Still no reply.
August 6: The driver tries again, and still there is no reply
August 16: York Risk Services Group give the driver a negative reply.The driver responds with a request for the process and also to get the settlement payment offered. Guess what, no response.
Analysis of the Claim
During a regular drive, with no casualties, the driver was involved in an accident, which occurred on June 14th. The driver contacts Lyft, and Lyft passed the situation on to their insurance agents Marsh Risk and Insurance Services.
Marsh Risk and Insurance Services passed the treatment to their insurance adjusters York Risk Services Group, and only after five weeks responded to the drivers claim to state that the car was a total loss. The driver, during all this time, complied with all requests and dealt with any requests immediately.
The actual settlement was not offered to the driver until July 24th which is over a month from the time of the accident. The driver knew of replacement cars pricing issues and sent his counter offer based on his research.
After requesting a reply three times, and only after seventeen days had passed by di the driver receive a reply, which in this case was a negative one. Upon which the driver decided to take the original claim amount and did not get a reply for over three weeks.
When contacted, Lyft gave a standard corporate reply which goes along the lines of; Lyft is not an insurance company, it does offer insurance services through a third party as part of their overall service to drivers. Lyft cannot help the driver during the process since it is the driver and the insurance company.Lyft does want their drivers to receive a prompt service and get back on the road fast. After which they gave the driver the same contact info he already had for York Risk Services Group.
What can Drivers do to assure this doesn't happen to them?
The driver made a formal complaint to the State's Department of Insurance as well as updating social media and other drivers of the situation. He is also explaining to them how long an insurance claim takes, which is more than beyond what is expected, for far longer.
- Don't rely on one company, make sure you have extra coverage above Lyfts.
- Be patient, getting irate and frustrated only works against your health and doesn't provide results other than a headache and stomach complaints.
- Always have copies of all documents and reports, and make sure you have a dash cam installed and keep a copy of the recording of the accident. Also, take as many witness statements you can.
- Don't give up and be persistent; you are not a nuisance when following up a claim. It is your right to get as much help as possible in a reasonable period.If you are not getting replies, or if the replies are ambiguous, make sure you get a properly detailed response. Keep records of all interactions.
- Use social media and share your story with as many drivers and interested partied that you can find online, as well as in real life.