Have you ever used a ridesharing service, such as Lyft, Uber or Sidecar? If so, you know that these increasingly popular services allow consumers to quickly and conveniently schedule a local ride from a private driver. Most people who take advantage of ridesharing services probably assume that they will be covered in the event of an accident when it comes to medical bills and injuries. That is exactly the assumption that numerous states are currently warning consumers about.

At present, 14 states and the District of Columbia have issued public warnings about the risk that ridesharing services may not actually carry adequate coverage for passengers in the event of a motor vehicle accident. In addition, passengers’ own insurance may not pick up the slack in such cases. 

The ridesharing company Uber has defended against this contention by pointing out that it carries a $1 million policy, and sources say that Lyft and Sidecar have similar insurance coverage. Still, those considering ridesharing services are being cautioned to make sure they understand the company’s policy and when coverage applies, as well as whether their own coverage would apply if they were to be involved in a car accident with a ridesharing service.

Insurance coverage is an important aspect of recovering from serious car accidents, and those who run into problems with coverage may need to find additional ways to be compensated. When pursuing personal injury litigation, it is important to work with an experienced attorney to ensure one builds the best possible case.

Source: NBC News, “States Warn of Rideshare Risks for Passengers,” Ben Popken, June 2, 2014.