Uninsured Motorists: Recovering Compensation When a Nebraska Lyft Driver Lacks Adequate Coverage

Rideshare services like Lyft have become increasingly popular in recent years, providing a convenient and affordable alternative to traditional taxis. However, when accidents involving Lyft vehicles occur, passengers may find themselves in a complex legal situation, especially if the driver lacks adequate insurance coverage. In this article, we will discuss the challenges of recovering compensation when a Nebraska Lyft driver is uninsured or underinsured and the steps you can take to protect your rights.

Understanding Lyft’s Insurance Policy

Lyft provides a $1 million liability insurance policy that covers passengers from the moment they enter the vehicle until they reach their destination. This policy is designed to protect passengers in the event of an accident caused by the Lyft driver. However, this coverage only applies when the driver is actively engaged in a Lyft ride, meaning they have accepted a ride request and are on their way to pick up a passenger or are currently transporting a passenger.

When the Lyft app is turned on, but the driver has not yet accepted a ride request, Lyft provides a contingent liability policy with lower limits. This policy covers up to $50,000 per person, $100,000 per accident for bodily injury, and $25,000 for property damage if the driver’s personal insurance does not apply.

It is crucial for passengers to understand the limitations of Lyft’s insurance policies and how they may be affected in the event of an accident involving an uninsured or underinsured driver. Passengers should also be aware that Lyft’s insurance policies do not cover medical expenses or lost wages, which can be significant in the aftermath of a serious accident.

The Problem of Uninsured and Underinsured Lyft Drivers

Despite Lyft’s insurance policies, there are still situations where passengers may find themselves without adequate coverage. One such scenario is when a Lyft driver does not have a personal auto insurance policy or has a policy with insufficient coverage limits.

In Nebraska, drivers are required to carry a minimum of $50,000 per accident and $25,000 per person in bodily injury liability coverage. $25,000 in property damage liability coverage is also required. However, these minimum limits may not be enough to cover the full extent of damages and injuries resulting from a serious accident.

Furthermore, some personal auto insurance policies may not cover accidents that occur while the driver is using their vehicle for commercial purposes, such as driving for Lyft. This gap in coverage can leave passengers without adequate protection if the Lyft driver is at fault for the accident.

Another issue that may arise is when a Lyft driver has a personal auto insurance policy but fails to disclose their rideshare activities to their insurance company. In such cases, the insurance company may deny coverage for the accident, leaving the Lyft driver personally responsible for any damages or injuries.

Uninsured and Underinsured Motorist Coverage

One way to protect yourself as a passenger in a Lyft vehicle is to carry uninsured and underinsured motorist coverage (UM/UIM) on your personal auto insurance policy. UM/UIM coverage provides protection when you are involved in an accident with a driver who has no insurance or insufficient insurance to cover your damages and injuries.

In Nebraska, insurance companies are required to offer UM/UIM coverage with limits equal to your policy’s bodily injury liability limits. However, you have the option to reject this coverage or choose lower limits. It is essential to carefully consider your coverage needs and opt for UM/UIM coverage to protect yourself in the event of an accident with an uninsured or underinsured Lyft driver.

When selecting your UM/UIM coverage limits, consider factors such as the potential cost of medical treatment, lost wages, and other damages that may result from a serious accident. Higher coverage limits will provide greater protection and peace of mind when using rideshare services like Lyft.

Navigating the Claims Process

If you are involved in an accident with an uninsured or underinsured Lyft driver in Nebraska, the claims process can be complex and challenging. The first step is to report the accident to Lyft and your personal auto insurance company, even if you do not believe you were at fault.

Next, you will need to determine the extent of the Lyft driver’s insurance coverage and whether your UM/UIM coverage will apply. This process may involve negotiations with multiple insurance companies and may require the assistance of an experienced personal injury attorney.

It is important to keep detailed records of the accident, including any medical treatment you receive and any expenses you incur as a result of the accident. These records will be essential in supporting your claim for compensation.

In some cases, the Lyft driver’s personal insurance company may deny coverage, or the available coverage may be insufficient to fully compensate you for your damages and injuries. In these situations, your personal UM/UIM coverage can provide a vital safety net, allowing you to recover compensation for your losses.

The Role of an Experienced Personal Injury Attorney

Navigating the legal complexities of an accident involving an uninsured or underinsured Lyft driver can be overwhelming, especially if you are dealing with physical injuries and emotional trauma. An experienced personal injury attorney can help you understand your rights, gather evidence to support your claim, speak with insurance companies on your behalf, and, if necessary, represent you in court.

When choosing a personal injury attorney, it is essential to look for someone with experience handling cases involving rideshare accidents and uninsured/underinsured motorist claims. Your attorney should have a thorough understanding of Nebraska’s insurance laws and be dedicated to advocating for your best interests throughout the legal process.

An experienced personal injury attorney can also help you navigate the complex interplay between Lyft’s insurance policies, the driver’s personal insurance, and your own UM/UIM coverage. They can work to ensure that all available sources of compensation are pursued and that you receive the maximum recovery possible for your damages and injuries.


Accidents involving uninsured or underinsured Lyft drivers in Nebraska can present significant challenges for passengers seeking compensation for their damages and injuries. By understanding Lyft’s insurance policies, carrying adequate UM/UIM coverage on your personal auto insurance policy, and working with an experienced personal injury attorney, you can protect your rights and increase your chances of recovering the compensation you deserve.

If you or someone in your family has been involved in an accident with an uninsured or underinsured Lyft driver in Nebraska, contact the experienced personal injury lawyers at Monge & Associates for a free consultation. We have 32 offices in 19 states including Nebraska, Ohio, and Utah.

Call today on (888) 477-0597.