That's a nice chunk but insufficient nowadays. (The 24-year old in that article might've been able to make several $million in his remaining career.) The Lyft driver could still end up on the hook.
Even many doctors don't have malpractice insurance above $1 million (depending on speciality and state) -- most policies are $100K-$300K/claim, $1MM-$3MM/all claims (http://jop.ascopubs.org/content/3/5/274.full). So Lyft is providing more liability insurance than many doctors carry.
If you're demanding absolute 0% risk for the Lyft driver financially, this would not cut it, but very little anywhere is absolutely no risk.