How often do you take an Uber or Lyft to work? When a ride-share car crashes, it can be hard to tell who must pay. It is not as simple as trading insurance cards.
Ride-share drivers use their own cars and usually work as independent contractors. Because of that, more than one insurance policy may apply. Which policy pays often depends on what the driver was doing in the app at the exact time of the crash.
Insurance coverage and Maryland law
Maryland Code, Public Utilities 10-405 sets unique insurance requirements for transportation network companies (TNCs) like ride-share operators. It also details specific coverage phases, limits and operational rules that operators must follow.
Under state law, coverage tiers change based on which operational phase the driver was in at the time of the collision.
Phase 1: Ride-sharing app is off
When all the ride-share apps are off, commercial ride-share insurance policies do not apply. The driver’s personal insurance policy is the only one available to cover any personal injury or property damage. When a driver turns the app off, commercial insurance policies will not cover liability.
Maryland does set minimum limits for personal auto insurance, but severe damage and permanent injuries can easily exceed these amounts. Maryland state law sets these minimum limits for personal insurance policies:
- $30,000 for bodily injuries per person
- $60,000 for injuries per accident
- $15,000 for property damage per accident
Lawyers and insurers commonly refer to this as the 30/60/15 rule. Personal policies typically exclude accidents from commercial activities. If an at-fault driver is in this phase, the TNC’s commercial insurance policy will not provide coverage.
Phase 2: App on, waiting for a ride request
If a driver logs onto the app to look for riders, but has not accepted one yet, the law requires ride-share operators to step in with primary coverage if the driver’s personal insurer denies the claim:
- $50,000 for bodily injuries per person
- $100,000 for injuries per accident
- $25,000 for property damage per accident
In this phase, the driver’s personal insurer may deny the claim because the driver is using the car for commercial purposes. If that happens, Maryland law mandates that the TNC’s coverage must pay from the first dollar of the claim.
Phase 3: Ride accepted, passenger onboard
The moment your driver accepts a ride request, TNCs maintain a minimum $1,000,000 primary commercial liability policy. This covers any third-party injuries, property damage, and includes mandatory Uninsured Motorist and Personal Injury Protection (PIP) benefits.
In ride-share crashes, timing is critical. Coverage can change minute by minute based on the driver’s app status. When in doubt, seek legal advice on how to deal with complex personal injury cases like these.