Rideshare services have become extremely popular in recent years. If you’re in an accident that involves a driver who is working for Uber or Lyft, though, what happens? Who is responsible for damages? And how does the insurance work?
The short answer is that the person at fault is responsible. The long answer is that it’s a complicated situation, with many entities involved. So, let’s look at a few different scenarios.
- If you’re driving and get into an accident caused by an Uber or Lyft driver: Sometimes, the rideshare driver’s personal insurance is not sufficient to cover the damages. In the past, the rideshare companies have tried to escape responsibility by saying that the drivers are independent contractors. After losing some court battles, though, they’re held to a stricter standard than that. Currently, many rideshare companies provide a $1 million insurance policy to cover drivers and passengers hurt in accidents. These policies provide compensation for injuries, medical costs, and deaths from accidents caused by rideshare drivers. Additionally, Uber and Lyft drivers must also carry state-mandated minimums for their own personal insurance.
- If you’re a passenger in the Uber or Lyft driver’s car: You’re protected by the rideshare driver’s personal insurance, as well as the policy held by the rideshare company, if the rideshare driver was at fault. If the driver of the other vehicle was at fault, that driver is liable for your injuries. Sometimes, determining fault can be a difficult and lengthy process. You may have to go to court and prove that negligence like distracted or impaired driving, speeding, or violations of traffic laws, or fatigue caused the accident. Generally, there may also be first party coverages such as Uninsured Motorist Coverage which apply.
- If you’re an Uber or Lyft driver: The First Party policies mentioned above may protect rideshare drivers who are hurt in an accident caused by another driver. Some rideshare drivers have complained about carrying the required insurance or have had trouble purchasing a policy. Recently, however, many major insurance companies have begun providing insurance policies specifically designed for rideshare drivers. If you’re in an accident, it’s important to contact both your insurance company and your rideshare company with the facts about the situation..
It’s important to keep track of all the facts in an automobile accident because you may be facing costly medical and other bills. It’s also important to have someone on your side who knows the law and can help make sure you’re treated fairly. At Taps and Associates, we provide personal attention to every case we handle, giving professional advice based on extensive experience. We believe that the biggest reward for us as attorneys is helping our clients and protecting them from those who would take advantage of them. To schedule a free consultation with an attorney you can trust, contact us through our website, or call 404-492-8746,