Phase two begins when the Lyft driver opens the app and waits for a ride request. During this phase, the Lyft driver’s insurance policy is the first source of coverage. However, Lyft’s insurance policy will provide additional coverage in the amount of $50,000 per person/$100,000 per accident. This coverage is third-party coverage, meaning that it applies to all accidents in this category, meaning that it will cover passengers, pedestrians or other motorists who are injured due to the Lyft driver’s negligence.
All motorists must purchase bodily injury liability coverage of at least $25,000 per person/$50,000 per accident in Illinois. However, personal insurance policies typically contain exclusions for accidents that occur while the insured is transporting a passenger for a fee. Thus, Lyft drivers can (and should) purchase rideshare insurance. However, not all drivers opt to take on this additional expense.