In today’s modern age, how people get around is changing. As rideshare apps like Uber and Lyft have grown in popularity across the country in recent years, we are, quite literally, a “tech-driven” world. However, with this increase in the use of these kinds of rideshare services, it is unsurprising that the number of lawsuits arising from motor vehicle accidents occurring during a rideshare situation has also grown.
The growth in rideshare accidents has brought to the attention of the legal community a wave of consumers’ questions regarding liability when an accident occurs while utilizing an app like Uber or Lyft to get around. Put simply, these types of accidents can be complicated, and are highly fact-specific, as, depending on the precise factual circumstances, liability can drastically change.
Complicating matters is the fact that Uber and Lyft drivers are generally not considered employees of the company they are driving for, with these companies typically claiming no legal responsibility for their drivers. However, in light of recent and ongoing litigation, a rideshare driver’s status as an independent contractor versus an employee is far from a settled issue. Even so, most major ridesharing companies still perform driver safety education, driver background checks, and motor vehicle checks.
Similar to the commercial carrier insurance required for taxi services, both Uber and Lyft offer up to $1 million in liability insurance coverage, but generally the policy has limitations as to when it applies and to whom it covers.
Consider the following information provided by Uber’s website, which outlines
three different factual scenarios effecting coverage:
A. Uber Driver has the APP ON and is waiting for a ride request
While the Uber driver is signed onto the Uber app, but before the driver accepts a ride request, the driver is covered for his liability to a third party if he is in an accident and at fault. Coverage includes the Uber driver’s liability to pay the injured party’s medical bills or to pay for property damage
.
Coverage Limits vary by state, but are at least:
- $50,000 per person/$100,000 per accident for bodily injury
- $25,000 per accident for property damage
B. Uber Driver has ACCEPTED the ride request and is either on his way to pick up a rider or is actively on driving the passenger to the destination
Before the Uber driver has picked up the rider, but after having already accepting a ride request, or during the actual Uber trip itself, Uber’s insurance policy is now in effect and covers three things:
- Third party liability coverage – This insurance covers the driver’s liability for damages to any third party such as another driver, pedestrian, or property in case of an accident when they’re at fault. Coverage limits vary by state but are at least $1,000,000 per accident.
- Uninsured or underinsured motorist bodily injury coverage – This insurance covers the driver and anyone else in the vehicle in case of an accident where another driver is at fault but does not have sufficient insurance. This also covers hit and run accidents where the at-fault driver cannot be identified. Coverage limits vary by state but are at least $1,000,000 per accident.
- Contingent collision and comprehensive coverage – This insurance covers the rideshare driver in case of an accident whether it was his fault or not, as long as the driver maintains auto insurance that includes collision coverage for that vehicle while not on an Uber trip. Coverage limit is up to the actual cash value of your vehicle. There is a $1,000 deductible.
C. Uber Driver has the app OFF and is driving his car for personal use
In this scenario, since the Uber driver is not actively utilizing the app and is driving the vehicle in his personal capacity, he is not covered by the insurance Uber maintains for driver-partners; therefore, accidents that occur while the Uber driver is not driving on the Uber platform are covered by the driver’s personal auto insurance.
Lyft’s coverage of their drivers changes depending on the factual circumstances of the rideshare situation in a very similar fashion to Uber, and thus, the facts in these matters, specifically regarding the status of the driver at the time (either on but waiting, accepted or en route, or driving personally) can change the legal calculus a great deal.
Therefore, if you a passenger in a rideshare vehicle, or you are hit by a ridesharing vehicle that was in service at that time, you should be covered by the rideshare company’s policy. If, however, you are hurt in a collision with a car which is “off the clock”, that driver’s personal insurance company should provide liability coverage.
Reckless driving by a rideshare driver who was actively in service at the time can be problematic. Even though the rideshare company’s coverage would be in effect at the time, the rideshare company’s insurance may attempt to deny claims because of the driver’s recklessness, bolstered by the fact that rideshare drivers are generally considered independent contractor. Thus, in cases of reckless driving by the rideshare driver, it may fall to the rideshare driver’s personal auto insurance to pay for the claim if he or she hurts a passenger or hits a pedestrian as a result of reckless driving, however, most personal insurance policies exclude coverage if the driver was acting for profit at the time of the accident, presenting a sticky situation for the injured passenger.
In any case, sorting out liability and which insurance company or individual is responsible for covering your claims is often a lengthy, complicated, and highly technical process. Very often, rideshare companies have teams of lawyers hired to ensure the company pays out as little as possible in connection with an insurance claim. Therefore, if you have been involved in a rideshare accident, either as the rideshare driver, a rideshare passenger, or someone hit by a rideshare vehicle, it is strongly encouraged that you seek legal representation to help ensure you receive just compensation for your injuries and future expenses related to them. Lento Law Group, P.C., is more than happy to help and our team of experienced attorneys are very knowledgeable regarding motor vehicle accidents involving rideshare scenarios. Call today – 1-833-LENTO LAW.
