# Too Risky To Drive For Lyft



## Maven (Feb 9, 2017)

Please answer the poll. Is it too risky to drive for Lyft if you do not have commercial insurance or a rideshare-rider/endorsement on your personal auto insurance policy? Drivers have greater risk because they spend more hours driving more miles often during more dangerous times (when bars close).

Do you realize that while online, before accepting a trip, there is no collision, no comprehensive, and no UM/UIM? After accepting a trip there is a *$2,500 deductible* for both comprehensive and collision. Lyft will not pay a penny if damage to your car is under $2500! Worse still, there is *no coverage for lost wages* (weeks) until your car is being repaired/replaced! Of course, neither Lyft or Uber mentions these facts during new driver signup, a lie by omission.

Many Lyft drivers also lie (by omission), by not informing their insurers they do rideshare. Most of those insurers will not cover any accident while online with Lyft (or Uber) and will drop coverage immediately if they even suspect you do rideshare. A few who allow rideshare will not cover drivers when online, getting a rude (expensive) awakening after having an accident. How many drivers understand how Lyft's insurance works?










*Lyft's auto insurance policy SUCKS!!!* Is even worse than Uber's, that has a $1000 deductible during Phase 2&3, compared to a *$2500 deductible for Lyft*. To review, for both Lyft and Uber, during Phase-1, online, but not on-trip, there is:

No Collision
No Comprehensive
No Uninsured/Under-insured motorist (UI/UIM)
Even if you have been honest with your current insurer about doing rideshare, most will not cover you on a personal (non-commercial) policy when online with either Uber or Lyft unless you have a rideshare rider/endorsement on your policy (few do).

If you have not already done so, I strongly suggest reviewing the policy for your state. There are differences from state-to-state. Unfortunately, those not familiar with insurance documents may find translating those difficult.

*Bottom line: you may be without any effective insurance coverage (from Lyft, Uber, or your personal policy) when online and waiting for a ping. What you have after accepting a ping, with a $2500 deductible, is essentially worthless.*

Here's an example to help you understand. For an accident where your car has $4500 damage (not as hard as you may believe) and you have personal (non-commercial) auto insurance without a rideshare-rider/endorsement

If offline then covered by your personal policy after your deductible.
If online, not on a trip then no coverage. You pay $4500 out-of-pocket.
If on a trip then Lyft pays $2000 ($4500-$2500) and you pay $2500 out-of-pocket.
Regardless, you get nothing ($0) for lost wages while the car is being repaired/replaced.
Lyft's insurance is written by

MARSH RISK & INSURANCE SERVICES, CALIFORNIA LICENSE NO. 0437153
345 CALIFORNIA STREET, SUITE 1300, SAN FRANCISCO, CA 94104
or
Marsh Risk & Insurance Services
Entertainment Practice
777 S. Figueroa St., 23rd Fl., Los Angeles, CA 90017
Phone (213) 624-5555 Fax (213) 346-5922


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## circle1 (Sep 17, 2016)

I'm amazed at the risks people take to chase a few dollars!

Commercial insurance is in the neighborhood of $200-400/month. If you set aside, say $200 every month for this scenario, then after one year with no accidents, you can know that there'll be $2,400 waiting for you. Multiply that by X-number of years and it looks like you could be your own risk insurance fund!


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## DidIDoThat (Jan 9, 2017)

I have rideshare endorsement... was cheap...


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## Puffballs (Jun 2, 2017)

DidIDoThat said:


> I have rideshare endorsement... was cheap...


But it doesn't cover the $2500 deductible, does it?


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## DidIDoThat (Jan 9, 2017)

My personal policy is in full effect during the whole time I am driving as a TNC driver. My deductible for my policy is $500, and my only real area of concern is during phase 1, since there is no collision or comprehensive coverage at that time.

Also remember the comprehensive and collision is dependant on your own insurance having that coverage. If you don't carry that coverage on personal policy then you won't have that coverage from Uber or Lyft period.


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## fairsailing (May 16, 2016)

Lyft constantly says what a driver friendly company they are. Until they agree to match the driver's policy deductible, they are just blowing smoke.

I bet the number of drivers who quit after a $2,500+ accident is near 100%.

Lyft's dirty little secret, but heh, they allow tips (oh wait, but now so does the competition).


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## Wiseleo (Feb 8, 2017)

I am fully aware of the actual policy language in effect while I do rides for Lyft. Moreover, I completed pre-license training to sell auto insurance. I can take a test and be a licensed broker tomorrow. Therefore, I can understand the actual policy language.

I do not need comprehensive/collision coverage. Deductible comes into play when I am at fault. I can collect from the other driver's insurance if I am the victim. I do not carry that coverage on my personal policy, which means Lyft does not cover me for car damage in the event I total my vehicle. That is the risk I am willing to accept, which causes me to drive extra carefully.

If you need that coverage and at a lower deductible, your insurer will happily sell you a rideshare endorsement. You are basically paying extra money to reduce your deductible.


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## Maven (Feb 9, 2017)

Wiseleo said:


> I am fully aware of the actual policy language in effect while I do rides for Lyft. Moreover, I completed pre-license training to sell auto insurance. I can take a test and be a licensed broker tomorrow. Therefore, I can understand the actual policy language.
> 
> I do not need comprehensive/collision coverage. Deductible comes into play when I am at fault. I can collect from the other driver's insurance if I am the victim. I do not carry that coverage on my personal policy, which means Lyft does not cover me for car damage in the event I total my vehicle. That is the risk I am willing to accept, which causes me to drive extra carefully.
> 
> If you need that coverage and at a lower deductible, your insurer will happily sell you a rideshare endorsement. You are basically paying extra money to reduce your deductible.


Just because you happen to be knowledgeable regarding insurance does not mean that most drivers are too. In fact, most new drivers do not realize that they are exposed because Uber/Lyft do not tell them. Most insurers do not have a rideshare endorsement/rider, but require more expensive commercial insurance. In fact, in the new NYC-Suburbs market there do not appear to be any. For such a driver, without either a rideshare endorsement or commercial insurance:

Collision during phase 1: No coverage from Uber/Lyft, or their personal policy. They pay entire repair cost.
Collision during phase 2&3: Only coverage from Uber/Lyft, not their personal policy. They pay $1000 or $2500 deductible if
at fault
cannot find other driver (hit and run)
other driver's insurer disputes fault. May or may not eventually recover deductible after many months.

The horrid reputation of Uber/Lyft insurers includes being hard to contact, slow to payout, and undervalue vehicle compared to other insurers.


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## circle1 (Sep 17, 2016)

Maven said:


> Just because you happen to be knowledgeable regarding insurance does not mean that most drivers are too. In fact, most new drivers do not realize that they are exposed because Uber/Lyft do not tell them. Most insurers do not have a rideshare endorsement/rider, but require more expensive commercial insurance. In fact, in the new NYC-Suburbs market there do not appear to be any. For such a driver, without either a rideshare endorsement or commercial insurance:
> 
> Collision during phase 1: No coverage from Uber/Lyft, or their personal policy. They pay entire repair cost.
> Collision during phase 2&3: Only coverage from Uber/Lyft, not their personal policy. They pay $1000 or $2500 deductible if
> ...


It's best to get the endorsement, go with the lowest premium, then save lot$ each month. Then YOU'RE in control! [obviously this is directed at the full-timers . . .]


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## Wiseleo (Feb 8, 2017)

Maven said:


> Just because you happen to be knowledgeable regarding insurance does not mean that most drivers are too. In fact, most new drivers do not realize that they are exposed because Uber/Lyft do not tell them. Most insurers do not have a rideshare endorsement/rider, but require more expensive commercial insurance. In fact, in the new NYC-Suburbs market there do not appear to be any. For such a driver, without either a rideshare endorsement or commercial insurance:
> 
> Collision during phase 1: No coverage from Uber/Lyft, or their personal policy. They pay entire repair cost.
> Collision during phase 2&3: Only coverage from Uber/Lyft, not their personal policy. They pay $1000 or $2500 deductible if
> ...


You asked for survey responses. We can discuss the details in a separate thread to avoid diluting this one, but I am giving you a valid data point. From my perspective, the insurance part is covered well. Now, since I was involved in a shooting where bullets struck my vehicle while on trip, I would argue that driving for Lyft is risky from personal safety perspective but you can't buy insurance against that unless you wish to deal with life insurance.


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## Maven (Feb 9, 2017)

Wiseleo said:


> You asked for survey responses. We can discuss the details in a separate thread to avoid diluting this one, but I am giving you a valid data point. From my perspective, the insurance part is covered well. Now, since I was involved in a shooting where bullets struck my vehicle while on trip, I would argue that driving for Lyft is risky from personal safety perspective but you can't buy insurance against that unless you wish to deal with life insurance.


I think that we agree more than not. I am glad that you, personally have sufficient insurance.  Aren't bullet holes that hit a car, but not a person, covered under comprehensive?


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## Arb Watson (Apr 6, 2017)

Maven said:


> Please answer the poll. Is it too risky to drive for Lyft if you do not have commercial insurance or a rideshare-rider/endorsement on your personal auto insurance policy? Drivers have greater risk because they spend more hours driving more miles often during more dangerous times (when bars close).
> 
> Do you realize that while online, before accepting a trip, there is no collision, no comprehensive, and no UM/UIM? After accepting a trip there is a *$2,500 deductible* for both comprehensive and collision. Lyft will not pay a penny if damage to your car is under $2500! Worse still, there is *no coverage for lost wages* (weeks) until your car is being repaired/replaced! Of course, neither Lyft or Uber mentions these facts during new driver signup, a lie by omission.
> 
> ...


Sounds like it's too risky to live....


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## Boom611 (Nov 8, 2016)

Wiseleo said:


> You asked for survey responses. We can discuss the details in a separate thread to avoid diluting this one, but I am giving you a valid data point. From my perspective, the insurance part is covered well. Now, since I was involved in a shooting where bullets struck my vehicle while on trip, I would argue that driving for Lyft is risky from personal safety perspective but you can't buy insurance against that unless you wish to deal with life insurance.


What time of the day did the shooting occur? Thx


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