Uber and Lyft Must Carry $1.5 Million of Insurance Coverage for Accidents

uber accident perth amboy

The Cost of Owning a Vehicle in the United States

Most people in New Jersey cannot even imagine life without a car.  Two popular ride-sharing services, Uber and Lyft, have gotten some people to reconsider whether they really need a car.  In 2013, the average cost of owning a car in America, according to AAA, was about $9,000.00Surely that number has gone up in the six years since.

One college student reported saving a substantial amount of money by selling his car and using Uber all the time for his transportation needs.  According to a 2018 internet trends report by venture capital firm Kleiner Perkins Caufield Byers, taking an Uber could be cheaper than owning a car in the cities of New York City, Los Angeles, Washington D.C., and Chicago.

Uber and Lyft Insurance Coverage

You’ll have to decide for yourself how to best meet your transportation needs. If you own a vehicle in New Jersey, you will have the additional expense of maintaining insurance on it. On the other hand, if you decide to get around using Uber or Lyft, not only will you save money on insurance, gas and maintenance but if you have the misfortune of being in an accident, Lyft or Uber are required by New Jersey law to provide a fairly substantial amount of insurance coverage. The required level of coverage might well be more than you would want to maintain on your own for your own vehicle. Lyft and Uber must carry commercial insurance policies with $1.5 million coverage limits, which cover passenger injuries when rideshare accidents occur. In addition, while you might feel the squeeze to buy a verbal threshold policy in order to save money, a Lyft or Uber driver cannot rely on the verbal threshold defense. When the so-called verbal threshold applies, the injured person must show that she or he has sustained a serious permanent injury in order to sue.  

But what if the Uber or Lyft driver wasn’t at fault?  You might not believe that your Uber or Lyft driver was at fault, but the driver of the other car will likely say, and try to prove, that the Uber or Lyft driver was at fault. Talk to one of the experienced Uber and Lyft accident attorneys at Courtlaw about why you might need to sue all of the drivers involved in the crash, even if you don’t think the rideshare driver was responsible.  You should also know that if you were a passenger in a Uber or Lyft vehicle and you believe your driver wasn’t responsible for the crash, the Uber or Lyft driver must still carry $1.5 million in Uninsured Motorist and Underinsured Motorist coverage.

Contact a Perth Amboy Personal Injury Lawyer About Your Uber or Lyft Accident in New Jersey

The skilled attorneys at Courtlaw represent clients injured in Lyft or Uber accidents in Perth Amboy, East Orange, Woodbridge, Paterson, and throughout New Jersey. Call 866-632-4211 or fill out our online contact form to schedule a free consultation about your case. We have an office conveniently located at 163 Market Street in Perth Amboy, New Jersey 08861.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly. 

For over a decade, Karim Arzadi has represented me and my family on matters related to car accidents and personal injury cases. I am extremely satisfied with the work he has performed. In addition, his staff is professional, friendly and efficient. I highly recommend him to those seeking a good lawyer.
I am very pleased for the great legal support that Karim Arzadi has provided to me and my family throughout the years we have been clients of his firm. I highly recommend Mr. Arzadi and his team of attorneys.
Mr. Arzadi and his staff were supportive to me and my family and provided excellent representation in my car accident case from the beginning of the case to the successful settlement. I highly recommend the Law Offices of Karim Arzadi to anyone who needs an excellent and caring attorney. He fights hard for his clients.

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