Confused by this. Did the Lyft driver have only personal insurance with State Farm…and was he also insured under Lyft’s driver contract agreement? Was he driving while on a Lyft call? Does his personal insurance cover Lyft or Uber driving? Does his personal insurance have an exclusion on livery service driving? In other words, was he properly insured? Did he make a statement or just walk away from the incident uninvolved, and hence the action against his personal insurer, State Farm? The negligence action in Texas is against the insured, and the insurance carrier acts to defend, if applicable by the contract, which, in the case of Uber and Lyft type driving is generally excluded unless a coverage option (with subsequent rate and underwriting considerations applied.) Lyft and Uber are responsible financially, and should have their own coverage.
The problem is that Lyft and Uber consider their drivers 1099 independent contractors, not W-2 employees. If they considered their drivers as employees, then they would have to be/act responsible and purchase their own Auto coverage. But they make the drivers buy their own coverage. Lyft and Uber want the best of both worlds: 1099 drivers, so no overtime must be paid and no Workers’ Compensation must be bought, but also treat them like employees and force them to buy their own Auto coverage. Sorry, Uber and Lyft, but you can’t have it both ways. This is why CA legislated a gig worker law which Uber just lost in June, 2024 (see link): https://calmatters.org/economy/2024/06/ab-5-california-uber/
The strike and cry out, “Why do our insurance premiums keep rising” as they continue to file suit after suit resulting in more and more legal fees, medical bills, settlements, etc.
UBER and LYFT are dumb business ideas in my mind. Taxi Cabs have a purpose and clear to folks who need rides. How many folks must die in these autos, HOW MANY? I do not understand how these companies are allowed to continue to operate. In my city, a small northern city, it decimated the taxi companies… I hope Lyft and Uber go away SOON.
Georgia has always been creative in finding ways to increase the costs of auto insurance, such as being the first state to mandate “loss of value” compensation on first party property claims. Insurance companies typically make their profit from investment reserves, and I am sure the actuaries at State Farm can readily determine the necessary premium increases to cover this new risk. More premium = more potential investment income. Win for all insurers.
Leave it to State Farm to make bad case law. First Mabry, now this. I realize Big Red has lots of money and lots of attorneys but every time they dig their heels into the sand and don’t pay something, we end up with worse case law than we had before here in the judicial hellhole that is Georgia, esp the Atlanta Triangle. Just shut up and pay the claim. Amazon just learned the hard way what happens when you don’t settle the case when you had the chance. I don’t care how annoying it is, paying always beats making crummy legal outcomes like this one that hurt everyone and raise premiums.
Confused by this. Did the Lyft driver have only personal insurance with State Farm…and was he also insured under Lyft’s driver contract agreement? Was he driving while on a Lyft call? Does his personal insurance cover Lyft or Uber driving? Does his personal insurance have an exclusion on livery service driving? In other words, was he properly insured? Did he make a statement or just walk away from the incident uninvolved, and hence the action against his personal insurer, State Farm? The negligence action in Texas is against the insured, and the insurance carrier acts to defend, if applicable by the contract, which, in the case of Uber and Lyft type driving is generally excluded unless a coverage option (with subsequent rate and underwriting considerations applied.) Lyft and Uber are responsible financially, and should have their own coverage.
Let the money flow baby. More lawsuits, higher prices. Higher prices, higher commissions.
The problem is that Lyft and Uber consider their drivers 1099 independent contractors, not W-2 employees. If they considered their drivers as employees, then they would have to be/act responsible and purchase their own Auto coverage. But they make the drivers buy their own coverage. Lyft and Uber want the best of both worlds: 1099 drivers, so no overtime must be paid and no Workers’ Compensation must be bought, but also treat them like employees and force them to buy their own Auto coverage. Sorry, Uber and Lyft, but you can’t have it both ways. This is why CA legislated a gig worker law which Uber just lost in June, 2024 (see link): https://calmatters.org/economy/2024/06/ab-5-california-uber/
The strike and cry out, “Why do our insurance premiums keep rising” as they continue to file suit after suit resulting in more and more legal fees, medical bills, settlements, etc.
UBER and LYFT are dumb business ideas in my mind. Taxi Cabs have a purpose and clear to folks who need rides. How many folks must die in these autos, HOW MANY? I do not understand how these companies are allowed to continue to operate. In my city, a small northern city, it decimated the taxi companies… I hope Lyft and Uber go away SOON.
Georgia has always been creative in finding ways to increase the costs of auto insurance, such as being the first state to mandate “loss of value” compensation on first party property claims. Insurance companies typically make their profit from investment reserves, and I am sure the actuaries at State Farm can readily determine the necessary premium increases to cover this new risk. More premium = more potential investment income. Win for all insurers.
Leave it to State Farm to make bad case law. First Mabry, now this. I realize Big Red has lots of money and lots of attorneys but every time they dig their heels into the sand and don’t pay something, we end up with worse case law than we had before here in the judicial hellhole that is Georgia, esp the Atlanta Triangle. Just shut up and pay the claim. Amazon just learned the hard way what happens when you don’t settle the case when you had the chance. I don’t care how annoying it is, paying always beats making crummy legal outcomes like this one that hurt everyone and raise premiums.