The first fatal automobile crash in Lyft's two-and-a-half year history occurred this weekend and is set to test the company's $1 million insurance policy, reports SFGate.
Shane Holland was a passenger in a Lyft vehicle when its driver, traveling at 60 mph on Interstate 80 near Sacramento, Calif. during heavy rainfall, swerved to avoid a stalled car in the middle lanes and lost control of his 2014 Toyota Camry. The car hit a tree, spun, and hit another tree. Holland was killed in the crash, while the driver and another passenger suffered moderate injuries, says SFGate.
The accident also involved several cars that struck the stalled vehicle Holland's driver tried to avoid. It could take several weeks or months to determine who was at fault, a Calif. Highway Patrol offer told SFGate.
Lyft and its rivals Uber and Sidecar have been under scrutiny over their insurance coverage. Lyft offers $1 million in liability insurance and $1 million in uninsured/underinsured motorist coverage while a driver is providing a ride, or is on the way to pick up a passenger.
This only became primary coverage in July — previously, it was offered as "excess" that kicked in only after a driver's personal auto policy had been exhausted. Personal auto insurers complained their policies were not designed to cover commercial rides like those offered by Lyft, says SFGate.
It is believed Lyft's policy will cover the accident, whether or not the Lyft driver is found at fault.
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