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Lyft is charging me a $2,500 deductible. I don't have it!

Question:

I was driving for Lyft. Other car that hit me was uninsured. Lyft is telling me I have to pay the first $2,500 of the repair costs. I don’t have it! What can I do?

Answer:

Sorry to say it, but you are likely out of luck. You, like most drivers, find out the hard way that Lyft’s insurance policy has a $2,500 collision deductible. What that means: if your car is repairable, and you go through Lyft’s insurance company for the repair of your car, you’ll have to pay the first $2,500 of the repairs. Lyft will pay the balance. If your car is totaled, Lyft’s insurance company will pay you the fair market value of the vehicle just before the accident, less $2,500.

Most Lyft drivers don’t have an extra $2,500 lying around. If they did, they probably wouldn’t be trying to pick up a little extra cash by driving for Lyft. That $2,500 can be a big problem for most Lyft drivers.

You can’t look to your personal auto insurance on your property damage claim, because they won’t cover you for the accident if you were signed onto the Lyft app at the time of the accident. The only way to avoid the $2,500 deductible is to go through the at-fault driver’s insurance company on your property damage claim.

But you will run into roadblocks if:

  • The other driver was uninsured; or
  • It was a multi-car accident and the at-fault driver’s property damage policy limit is insufficient to pay for everyone’s damage; or
  • There is a liability dispute. In this situation, the other driver’s insurance company will likely refuse to make a final liability determination until the police report is ready (if there was one). In the meantime, you’re stuck without a car.

Bottom Line: The only way to avoid the $2,500 deductible is to go through the other driver’s insurance on your property damage claim. Otherwise, you’re stuck with it. Uber, by the way, has a $1,000 property damage deductible. Better, but still tough for most rideshare drivers.

If you have been involved in a car accident while driving for Lyft or Uber, give us a call. Even if we can’t take your case, we are happy to give you free advice.

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