Rideshare companies like Uber and Lyft do not employ their drivers. They are contracted as independent contractors. Under current circumstances, many insurance companies may deny coverage if the driver is driving “for profit.” Uber and Lyft drivers carry “excess insurance coverage,” beyond the coverage that the driver carries for him or herself. This means if you are injured in the backseat of a rideshare car, the liability insurance the company carries covers for damages, even if your claims are denied by the driver’s own liability insurance.
Taxi Companies vs. Rideshare Companies
Although taxicab companies have been advertising that Uber and Lyft do not carry adequate insurance to cover passenger injury, in practice, this is not the case. According to Uber and Lyft, the rideshares carry up to $1 million in coverage. Taxicab companies’ coverage varies from state to state, usually between $250,000 and $500,000. This comes to about $30,000 maximum coverage for each case. The maximum coverage for collisions in a taxicab is around $60,000 for all passengers involved in the accident.
Uber and Lyft drivers are required to carry their own personal insurance policies. The rideshare companies carry a million dollar personal liability coverage policy and one million dollars in uninsured/underinsured property damage coverage. However, it gets more complicated; rideshare drivers are simply private drivers using their own vehicles. If you have an accident while the driver is not formally logged into the Uber or Lyft system, only the driver’s personal insurance will cover you and these claims are often denied. If the collision happens while the driver is logged in, but waiting for a ride request (is in an on-call mode) the driver’s personal insurance will have primary responsibility, but the rideshare company may provide some additional coverage. The full insurance policy of Uber or Lyft will apply only if the driver is en route to pick up a passenger or has a passenger in his or her car.
What Has to Be Done in Case of Accident?
Accidents are complicated from the standpoint of the Uber or Lyft driver as well as their passenger. In a normal accident, what happens is pretty clear-cut. The at-fault party is liable for property damages, medical bills, and other liabilities. However, for the Uber or Lyft driver, they have a passenger to worry about. They have to keep in mind Uber’s or Lyft’s terms and conditions. They have to consider what state they are driving in. They have to follow procedures in the aftermath of the accident.
- Assess any injuries and call emergency services (911).
- Photograph damage to both cars.
- Collect information from witnesses if possible.
- Call the company’s hotline.
- Call their personal insurance company.
- They must never admit they are at fault. Even if they believe they are, they must not say so.
- They must never escalate the situation by acting angry or threatening.
Accidents in rideshare vehicles are complicated. If your Uber or Lyft driver has an accident which injures you, it’s important that you treat the collision as a legal matter.
- Consult an Uber Accident Attorney or Lyft Accident Attorney or Rideshare Accident Attorney.
- Seek necessary medical attention and save the medical documents.
- Obtain all of the driver’s insurance information including both the Uber policy and the driver’s own personal insurance.
- Take pictures and the accident scene and your injuries.
- Find out exactly what the driver’s log-in status was at the time–try to document it.a
- Inform law enforcement and file a police report.
Freeman & Freeman are rideshare accident attorneys who know the nuances of ridesharing laws in California. There are many benefits to having an experienced personal injury attorney on your side. Please contact us to learn more.