Rideshare services like Lyft and Uber have become an integral part of people in San Diego. It provides an income to drivers and convenience for the passengers. However, when crashes occur, the accident victims usually witness a web of insurance problems and irritating delays.
Some insurers deny claims the moment a driver is not able to prove that they work for a rideshare service. It will leave the injured people caught between corporate and personal policies. It is here that an expert car crash lawyer in San Diego helps to resolve this situation. They can recognize the applicable coverage, the challenges in insurer denials, and fight to offer the victims the compensation that they deserve.
The way Rideshare insurance functions
Simply put, the rideshare insurance coverage is based on what the concerned person was doing during the crash.
- App off – In this case, the personal auto policy of the driver applies.
- No passenger, app on – It provides restricted liability coverage from a rideshare company that might be applicable when the personal insurer removes commercial use.
- En route and passenger onboard – This provides complete commercial coverage with an increased liability limit along with UIM/UM protection.
Both Lyft and Uber define these timeframes in their respective insurance coverage policies. It indicates that the coverage is subject to change depending on whether or not the driver was on duty officially. A San Diego car accident lawyer can bring more clarity here with their years of experience and solve this.
Why do insurers refuse claims when drivers fail to reveal rideshare use?
At times, drivers aren’t able to reveal their rideshare activity because the majority of personal auto policies don’t include ‘for-hire’ or ‘commercial use’. In case a driver lists their car as personal but keeps using it for paid rides, the insurers might claim:
- Material misrepresentation: There is an essential fact that the drive didn’t share while getting coverage.
- Exclusion of commercial use: This policy doesn’t cover any rideshare driving.
In certain cities in the United States, the insurers can even decide to withdraw the policy. However, courts have the power to reject this withdrawal in case the insurer had accepted this risk.
The repercussions of the denial for an injury victim
If you get bruised in a car accident and the driver’s personal insurer refuses the coverage because of invisible rideshare driving, you may face any one of the following:
- Lyft or Uber might disclaim coverage in case the driver didn’t log in to the app.
- The victim might have to depend on their underinsured or uninsured coverage. They can also accuse the driver at fault directly and choose to pursue the defendants who are available.
Therefore, to understand the entire situation and make more sense of it, you need the help of an expert car accident lawyer. To know more about this, you can check out HHJtrialattorneys.com/ and have your queries answered. The lawyers are experienced and know how to tackle a complex situation like this and provide you with the guidance so that you receive the compensation.
Summing it up
In San Diego, the insurer can refuse to pay the injury claim in case an Uber or Lyft driver fails to disclose the use of the vehicle. Also, the same is possible if they are not transparent about the use of the vehicle. Hence, this situation needs to be managed with the help of a lawyer who can guide the victims accordingly.
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