Insurance options for rideshare passengers

On Behalf of | Aug 15, 2020 | Car Accidents |

Rideshare accidents are among the most complicated crash cases in Georgia. The complexities tend to revolve around who to hold liable. Should the driver pay? Should the rideshare company? While insurance companies and courts argue over this, injured passengers fight to get compensation for their injuries.

Several startups are trying to remedy the problem by providing rideshare insurance for passengers. Fox News reports that one company intends to partner with Chubb, an underwriter, to provide a rideshare insurance policy.

Rideshare-sponsored insurance

Fox points out that rideshare companies already provide insurance that covers drivers and passengers. Lyft and Uber both provide liability coverage up to $1 million, though, Fox does not specify if this is per accident or per person.

Unfortunately, rideshare companies and their insurance providers are not always keen on paying what passengers should receive. In fact, there are some strict criteria that incidents need to meet before rideshare companies foot the bill. This may cause many injured passengers to pay out of pocket anyway.

Startup insurance

The startup aims to connect with the Lyft and Uber account to ensure automatic coverage of each ride. At the time of the Fox news article, the company provided 24 hours of coverage for just $2.40 in 38 states.

According to Inc. magazine, $2.40 provides $10,000 for medical bills and $100,000 for dismemberment or death. The company also wants to expand into other types of services that put consumers at risk, such as e-scooters.

There are several other startups following the same premise. These micro-insurance companies also insure many other non-traditional items, such as stamp collections.


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