Insurance policies will vary by company; however, all rideshare drivers are required to have their own insurance in order to be eligible to work for a ridesharing company. In addition to the driver’s insurance, Lyft carries up to $1 million of liability company insurance. However, this coverage is only in effect when at certain times: Lyft App is OFF: Only the driver’s personal insurance is in effect. App is ON and Driver is “Available”: In addition to driver’s insurance, Lyft’s contingent liability coverage can now be accessed. This includes up to $100,000 for injuries. Driver is on Lyft Trip: Company’s full commercial insurance coverage is in effect. This includes $1 million in third-party liability and $1 million in uninsured and underinsured coverage.

Typically, all a person needs to become a Lyft driver is an active driver’s license and proof of insurance. Lyft is not as heavily regulated as traditional taxi services, and Lyft drivers are not expected to complete a certified licensing program. After meeting a few company-based requirements, drivers are free to transport clients without any additional training, on-boarding, or experience Initially, this resulted in many of these services being banned as unlicensed taxi companies. However, bans have since been lifted, leaving the companies free to operate.

Ridesharing companies have worked pretty hard to distance themselves from their drivers, at least in terms of legal responsibility. Lyft, for example, has fought against litigation that would give its drivers' employment status under the law. Instead, Lyft has pushed to keep its drivers listed as independent contractors in order to limit the company’s liability for any negligence displayed by their drivers. When confronted with litigation, rideshare providers like Lyft will attempt to claim they only facilitate fares and are not responsible for their driver’s actions. It is then up to the plaintiff’s attorneys to prove the company’s liability.