Nowadays, Rideshare services are a very convenient way to get from point A to point B. With the number of trips logged by Uber and Lyft Drivers steadily increasing, this puts you at risk for being involved in an accident while a passenger of either Uber or Lyft. What should you do if your Uber or Lyft driver gets into a car accident in New Jersey? Let’s learn about state mandated insurance requirements and how this impacts both drivers and passengers.

Automobile Insurance Requirement: NJ requires automobile insurance policies to have Personal Injury Protection (PIP) benefits. (39:6A-1 et seq.) This coverage is for medical treatment/expenses that are reasonable and medically necessary.
While this law requires that a driver maintain automobile coverage, Transportation Network Companies (TNC)s are themselves not required to maintain coverage as well. (39:5H-10) The law only requires that the driver, the TNC or a combination of both maintain the requisite insurance coverage.

DRIVER’S PERSPECTIVE

Primacy: The PIP coverage of a named insured shall be the primary coverage (39:6A-4.2); this means that your own insurance is the primary coverage for medical expenses. There is an exception provided as follows: policies issued or renewed on or after January 1, 1991 have the option for other health insurance coverage or benefits of the insured as the primary medical benefits coverage of the insured. If this option is chosen, the PIP coverage is liable for reasonable medical expenses not covered by health insurance or benefits up to the limit of the medical expense benefits coverage. (39:6A-4.3(d)) What this exception means is that if you, the insured, elected to have other health insurance as your primary medical coverage that health insurance takes the place of the PIP coverage, with the PIP coverage only covering those medical expense not covered by your health insurance.

Even though the primary PIP coverage is that of the named insured there is an exception that shares primacy with the TNC coverage. Coverage under an automobile insurance policy maintained by the TNC shall not be dependent upon a private passenger automobile insurer first denying a claim nor shall a private passenger automobile insurance policy be required to first deny a claim. (39:5H-10(e)) This would indicate that the coverage held by the TNC may become primary. For this exception to primacy to be utilized the driver must be logged onto the DN and not driving around for his/her own purpose. (39:5H-10(b)-(c))

Coverage: As specifically concerns the driver, the amount of coverage required for medical payment benefits is at least $10,000 per person per incident which shall only be applied to and provide coverage for the benefit of the driver when driver is providing a ride and logged into DN. (39:5H-10(c)(2)) This means that the PIP coverage for the driver is at least $10,000 for medical expenses and that this amount only applies to the driver when the driver is providing a ride.

The amount of PIP coverage is in accordance with 39:6A-4 when driver not providing a ride; logged onto DN and available to receive a ride. (39:5H-10(b)(2))

If the driver’s PIP coverage is lapsed or not the required coverage the TNC insurance shall provide the required coverage beginning with the first dollar of a claim and the TNC PIP provider shall have the duty to defend the claim. (39:5H-10(d)) This means that if for some reason the driver’s coverage is not adequate or has lapsed then the insurance provided by the TNC will provide coverage.

PASSENGER PERSPECTIVE OF NAMED INSURED OWN POLICY AND WHO LIVES WITH A FAMILY MEMBER WITH THEIR OWN POLICY BUT IS NOT NAMED

Primacy: The PIP coverage of a named insured shall be the primary coverage (39:6A-4.2); this means that your own insurance is the primary coverage for medical expenses. Additionally, any resident relative in the named insured’s household who is not a named insured is covered by the policy of the named insured. (Id.) Thus a child who is not a named insured but is living with a parent would be covered under the parent’s insurance.

There is an exception provided as follows: policies issued or renewed on or after January 1, 1991 have the option for other health insurance coverage or benefits of the insured as the primary medical benefits coverage of the insured. If this option is chosen, the PIP coverage is liable for reasonable medical expenses not covered by health insurance or benefits up to the limit of the medical expense benefits coverage. (39:6A-4.3(d)) What this exception means is that if you, the insured, elected to have other health insurance as your primary medical coverage that health insurance takes the place of the PIP coverage, with the PIP coverage only covering those medical expense not covered by your health insurance.

Even though the primary PIP coverage is that of the named insured there is an exception that shares primacy with the TNC coverage. Coverage under an automobile insurance policy maintained by the TNC shall not be dependent upon a private passenger automobile insurer first denying a claim nor shall a private passenger automobile insurance policy be required to first deny a claim. (39:5H-10(e)) This would indicate that the coverage held by the TNC may become primary. For this exception to primacy to be utilized the driver must be logged onto the DN and not driving around for his/her own purpose. (39:5H-10(b)-(c))

Coverage: The amount of coverage for the named insured provided depends on the choices made when purchasing automobile insurance. (39:6A-4, 39:6A-4.3, 39:6A-8, 39:6A-3.1, 39:6A3.3) The standard coverage is not to exceed $250,000 for medical expenses. (39:6A-4) The basic alternative coverage is not to exceed $15,000 per person per accident with an excess coverage not to exceed $250,000 for serious injuries. (39:6A-3.1(a)) The special alternative coverage is defined y the federal Medicaid program. (39:6A-3.1(b)(1))

As specifically concerns the driver, the amount of coverage required for medical payment benefits is at least $10,000 per person per incident which shall only be applied to and provide coverage for the benefit of the driver when driver is providing a ride and logged into DN. (39:5H-10(c)(2)) This means that the PIP coverage for the driver is at least $10,000 for medical expenses and that this amount only applies to the driver when the driver is providing a ride.

If the driver’s PIP coverage is lapsed or not the required coverage the TNC insurance shall provide the required coverage beginning with the first dollar of a claim and the TNC PIP provider shall have the duty to defend the claim. (39:5H-10(d)) This means that if for some reason the driver’s coverage is not adequate or has lapsed then the insurance provided by the TNC will provide coverage.

PASSENGER PERSPECTIVE WITHOUT OWN POLICY

Primacy: Even though the primary PIP coverage is that of the named insured there is an exception that shares primacy with the TNC coverage. Coverage under an automobile insurance policy maintained by the TNC shall not be dependent upon a private passenger automobile insurer first denying a claim nor shall a private passenger automobile insurance policy be required to first deny a claim. (39:5H-10(e)) This would indicate that the coverage held by the TNC may become primary. For this exception to primacy to be utilized the driver must be logged onto the DN and not driving around for his/her own purpose. (39:5H-10(b)-(c))

Coverage: The driver, the TNC or a combination of both must maintain uninsured and underinsured motorist coverage to the extent required by 17:28-1.1. This coverage is only available while the driver is logged onto the DN and is not providing a ride. (39:5H-10(c)) This means that if the insured (driver TNC or both) elect to have uninsured and underinsured motorist coverage will be $250,000 each person and $500,000 each accident for each accident for bodily injury. (17:28-1.1(b))

The amount of uninsured and underinsured coverage must be at least $1.5 million. This coverage only applies if the driver is logged onto the DN and providing a ride. (39:5H-10(b))

If the driver’s coverage is lapsed or not the required coverage the TNC insurance shall provide the required coverage beginning with the first dollar of a claim and the TNC PIP provider shall have the duty to defend the claim. (39:5H-10(d)) This means that if for some reason the driver’s coverage is not adequate or has lapsed then the insurance provided by the TNC will provide coverage.

APPLICABILITY OF LIMITATION ON LAWSUIT

What it is: Limitation on Lawsuit (LOL) provides an exemption from liability for noneconomic loss resulting from bodily injury from an automobile accident. Bodily injury does not include death; dismemberment; significant disfigurement or significant scarring; displaced fractures; loss of a fetus; or a permanent injury within a reasonable degree of medical probability. Permanent injury means the body part or organ, or both has not healed to function normally and will not heal to function normally with further medical treatment. (39:6A-8(a))
This exemption from liability is a choice the insured makes when choosing their automobile policy. This is not a requirement for automobile coverage. (39:6A-8)

Applicability: A driver or a TNC cannot assert LOL in any action for damages from a ride. A driver or TNC cannot assert LOL against any party receiving PIP benefits in any action for damages from a ride. (39:5H-10(j))

WHO CAUSED THE ACCIDENT???

At the Law Office of Peter Briskin, our NJ car accident lawyers will guide you accordingly and answer all of your questions if you have been injured while a passenger or a driver in an Uber, Lyft or other rideshare company car accident. We will fight to recover money for injuries sustained in your car accident in New Jersey or New York and make sure your rights are protected.

Contact us any time of day or night at 908-279-7979 for a FREE case evaluation.