New York Laws for Uber / Lyft Drivers & Passengers Hurt in Accidents

Monday, October 30th, 2017

There has been a lot of confusion about the insurance coverage afforded to drivers, passengers, and pedestrians injured in automobile accidents involving Uber or Lyft vehicles. If you’ve been involved in an Uber or Lyft accident in New York State, here is what you need to know:

The New York State Legislature recently passed the 2018 New York Fiscal budget, which contains explicit rules as they pertain to insurance coverage for “Transportation Network Companies,” such as Uber and Lyft. The Fiscal Year 2018 New York State Executive Budget for Transportation Economic Development and Environmental Conservation Article VII Legislation, Article 44-B Section 1693, titled “Financial responsibility of transportation network companies” mandates that companies providing ridesharing services, such as Uber and Lyft must provide the following insurance for drivers, passengers, and third parties:

  • A policy of at least $50,000 per person, $100,000 per occurrence when a driver is logged into the company’s digital network and is available to receive transportation requests, but is not engaged in a prearranged trip.
  • A policy of at least $1,000,000 while a driver is engaged in a prearranged trip. (Note: a “prearranged trip” is deemed to have started when a driver accepts a trip, and ends when the passenger is dropped off)

Importantly, the Bill dictates that if the insurance maintained by an Uber or Lyft driver has lapsed or does not provide the required coverage, then the policy maintained by Uber or Lyft must provide the requisite coverage. This means that Uber and Lyft can be held responsible if a driver has failed to procure the requisite insurance coverage.

Interestingly, rideshare companies are actually providing coverage that exceeds the minimum requirements imposed by the bill. For example, Uber provides $1.25 million in coverage (including uninsured and underinsured motorist’s insurance) for its drivers from the time a driver accepts a trip to the time that trip ends. While an Uber driver is online, but prior to accepting a trip, Uber provides $75,000 per person, $150,000 per occurrence for drivers and third-parties.

It is important to note that these minimum insurance requirements do not apply to Uber or Lyft vehicles operating within the five (5) boroughs. There is a carveout within the Bill for trips originating within the City of New York (see Article 44-B Section 1691(b)(i)-(viii)).

The trial lawyers at Block O’Toole & Murphy have a long history of representing those injured in automobile accidents. If you, or someone you know has been involved in an accident involving an Uber or Lyft vehicle, contact the lawyers at Block O’Toole & Murphy immediately for a free consultation. Simply call 212-736-5300 or fill out our Contact Form. Our law firm provides legal representation for Uber and Lyft drivers, passengers, and others hurt in a collision with an Uber or Lyft vehicle. Insurance requirements exist to protect everyone involved.

Our attorneys have one of the best records in New York State for motor vehicle accident victims. Notable verdicts and settlements include:

To learn more about our auto accident results, please visit our Motor Vehicles Verdicts and Settlements page.

For further reference on New York legislation regarding Lyft and Uber, please see the below links:

Questions about an Uber or Lyft accident? Call today: 212-736-5300


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