A passenger who is injured in a New Jersey automobile accident always has recourse for damages against any insurance policy covering any responsible vehicle in the accident. (This is a separate issue from coverage for medical expenses, which is initially covered by any auto insurance policy of the passenger, and if none, then any insurance policy of a family member with whom the passenger resides.)
The coverage for damages under any New Jersey insurance policy might be as little as zero under a basic policy. However, the good news is that the New Jersey Legislature has spoken to protect ridesharing passengers such as Uber or Lyft with minimum coverages.
For any passenger injured in a rideshare vehicle, the required coverage is $1.5 million. That coverage must also include $1.5 million for uninsured and underinsured motorist coverage. So for example, in case of a hit and run vehicle negligently colliding with the rideshare vehicle, the rideshare vehicle provides $1.5 million in coverage. If the rideshare driver’s insurance is not in effect, then the rideshare company (Uber, Lyft, etc.) must provide the $1.5 million in coverage.
If neither the passenger nor anyone in her household has any auto insurance at the time of the accident, then the rideshare driver’s insurance must also pay her medical expenses incurred in the accident.
In New Jersey, your right to sue may generally be limited if you elected the verbal threshold on your auto insurance policy. However, N.J.S.A. 39:5H-10(j) prevents a ridesharing company or its drivers from claiming the verbal threshold as a defense in an accident involving a ridesharing vehicle.
Although being injured in an accident is always an unhappy experience, at least the New Jersey Legislature has provided enhanced protection for those hurt in ridesharing vehicle accidents involving companies like Uber and Lyft.
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