On-Demand Ridesharing Startup Lyft Adds Insurance Between Rides

This could have interesting implications for people who have retired from driving and need to identify alternative transportation solutions.


In the modern transportation market, companies like Lyft, Uber, and Sidecar have emerged to help get users from point A to point B. But with current regulations, there are questions about who is protected against potential liabilities when something goes wrong. Tonight Lyft sought to alleviate some of those concerns with the announcement that its insurance will cover drivers even when they aren’t actively driving a passenger that requested a ride on its platform.

Lyft had previously obtained insurance that covered any incident when a passenger was in a car. But the company’s liability was unclear at times in which drivers had signed on to accept rides but had not yet picked someone up. That differs from the typical taxi structure, in which drivers are generally covered so long as they are in a marked car.

For Lyft that means obtaining insurance between the time a contracted driver logs on…

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One thought on “On-Demand Ridesharing Startup Lyft Adds Insurance Between Rides”

  1. Ive seen the pink mustache cars designating Lyft cars and I’ve used Uber to get a ride. It’s great that transportation option are being expanded. Prior to reading this article I never considered the legalities associated with these program, this opens my eyes to how complex this situation is. I’m glad to see that insurance coverage is increasing.


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