Death of Lyft Passenger Raises Questions About Insurance

The California Highway Patrol confirmed that a 24-year-old man was killed while he was a passenger in a Lyft driver's vehicle on Nov. 1. Both the passenger and the driver in the vehicle were wearing seat belts while they were traveling along Interstate 80 in Roseville. In an attempt to avoid colliding with a stalled vehicle in the road, the driver swerved and hit a tree.

According to reports, the death of the passenger on the morning after Halloween is the first fatality to take place in a Lyft vehicle. Taxi companies have reportedly been critical of companies like Lyft because critics say ridesharing services do not offer passengers sufficient protection in case of potential car accidents.

The California insurance commissioner claims that many ridesharing passengers actually have more insurance coverage than passengers in a taxi do. Ridesharing companies Lyft and Uber each carry liability insurance of $1 million. Insurance requirements for taxi companies, which are regulated by counties and cities, may only be $250,000. Limos are required to have $750,000 in insurance. Both Uber and Lyft added special insurance coverage in July that will pay for any injuries that are caused by a driver while the driver is waiting for a passenger.

Family members of a deceased car accident victim are entitled to claim financial losses from the liable party's insurance provider. After the accident, however, the insurance provider may attempt to downplay the damages so that the family receives less than the full value of their claim. Representation from an attorney may help the family to recover the maximum amount of financial compensation that they have the right to claim.

Source: CBS Sacramento , "Lyft Passenger’s Death Raises Concerns About Insurance Coverage Of Ridesharing Services", November 03, 2014

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