Uber Accident Compensation

Answer:

Any motor vehicle accident in New York State where there is a shared ride, such as Uber or Lyft, both the driver and the vehicle that you’re in are governed by New York State law. Uber has decided to provide the drivers of the vehicles with increased insurance capabilities. However, it isn’t really insurance — it’s something that’s covered by Uber itself through a third-party administrator.
The reason they’re doing that is because if you want to be an Uber driver, your insurance company contractually has indicated that they’re not going to cover you. In other words, if I have an insurance policy through Allstate, and I am an Uber driver, my Allstate policy may have language in there that excludes them from having to provide me, or anyone who I get into an accident with, with coverage. This means that an Uber driver in the scope of that employment, who gets into an accident, would not have coverage through their car. This is why Uber has stepped in to provide that coverage and make sure people are not forgoing using the Uber vehicles because they’re concerned about not having any type of insurance benefits when they’re in those vehicles.