Who Is Liable for an Uber/Lyft Car Accident?

Rideshare services have become a staple on the roads by offering a convenient transportation option. People have found the freedom to travel when they can’t drive themselves. Rideshare apps have also appealed to individuals looking to make some extra money with the vehicle they already own. Unfortunately, with more motorists working for rideshare apps, the number of Uber/Lyft Accidents has also increased. This raises the question of who is liable.

Common Rideshare Accident Scenarios and Liability Issues

There are several possible situations when auto accidents involve a rideshare driver. A rideshare driver could get into an accident while driving their vehicle for personal reasons. This would be treated like a regular car accident because the driver isn’t acting in a rideshare capacity.

Another possibility is that the driver gets into an accident while logged into the rideshare app but not actively transporting a passenger. In this situation, the rideshare driver needs to have the correct insurance to cover the accident. The rideshare app may also offer some liability coverage for the accident claim.

Finally, a rideshare driver could get into an accident while commuting to a passenger to pick them up or while driving a passenger. This is when the driver is actively engaged in rideshare activities. In all of these scenarios, the rideshare driver could be wholly, partially, or not at fault for the accident.

“There are three typical scenarios that we see when it comes to Uber, Lyft, or ride-sharing accidents,” says Jason Turchin, a personal injury lawyer representing clients injured in rideshare accidents in Weston, Florida. “We have claims made by the driver when somebody else is at fault, but the driver is working at the time of the accident. A second [scenario] is where another vehicle is at fault, and you’re a passenger in the vehicle. The third is when your own driver is at fault.”

How Rideshare Driver Classification Affects Liability

Uber and Lyft drivers are independent contractors, not employees. This means that third-party liability, or vicarious liability, which typically holds an employer liable for an employee’s actions, does not apply in this situation. Rideshare companies use this distinction to avoid liability in accident cases.

There are three typical scenarios that we see when it comes to Uber, Lyft, or ride-sharing accidents. We have claims made by the driver when somebody else is at fault, but the driver is working at the time of the accident. A second [scenario] is where another vehicle is at fault, and you’re a passenger in the vehicle. The third is when your own driver is at fault.

What Should I Do After a Rideshare Accident?

As with any accident, health and safety are the priority. If possible, move all vehicles and individuals to the side of the road. Alter emergency services to get medical attention for those injured. This will also notify law enforcement to have a police officer come to the Lyft/Uber accident scene.

The police officer will prepare an accident report that includes everyone’s contact information, a record of the driver’s actions, and witness statements. Save this report to submit with your insurance claim. Take pictures and videos of the property damage and accident scene.

Once you leave the accident scene, you will notify your insurance company of the accident. Then, report the accident to Uber, Lyft, or the rideshare company the driver was working for at the time of the accident. You can also seek out a personal injury attorney. A lawyer experienced with rideshare accidents will be able to explain your legal rights and the next steps in seeking compensation for your injuries and property damage.

Car Insurance Coverage for Uber/Lyft Drivers

While Uber and Lyft provide liability coverage, rideshare drivers should not depend solely on this coverage. Drivers need to purchase a commercial insurance policy.

Uber and Lyft each have tiered liability coverage policies that cover injuries suffered in accidents caused by their drivers. These policies only cover drivers in specific situations. They will not cover drivers who have their apps turned off and are driving for personal needs.

The policy will provide coverage when the driver has the app on, and they are waiting for a ride request. Generally, this coverage is $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $25,000 for property damage. Coverage increases up to $1 million when a rideshare driver is en route to pick up a passenger or actively driving a passenger. These policies can include comprehensive coverage, but only if the driver included this coverage in their personal insurance policy.

Turchin explains that rideshare companies have changed insurance providers and policies over the years, which can affect the coverage available to drivers. “Uber and Lyft typically provide their drivers, who are working at the time while the app is on, with insurance. The first step is really finding out what insurance the vehicle had. It may have changed over the past several years, depending on which policy Uber or Lyft has in place at the time of the accident.”

Insurance companies specifically ask if a vehicle will be used for rideshare purposes when buying a personal auto insurance policy. If a driver is dishonest and says no, the driver’s personal insurance policy will not cover any insurance claim originating from a rideshare accident. The driver is essentially uninsured.

Who Is Liable If a Passenger Is Injured in a Rideshare Accident?

The party liable for injured passengers in a rideshare vehicle will depend on the facts of the accident and the state in which the accident occurred. Some states, like Florida, are no-fault states. Injured passengers would file a claim under their own insurance policy. However, many passengers do not have car insurance because they do not own a vehicle, which is why they are using a rideshare service. In this case, they would need to seek compensation from the at-fault party. This may or may not be the rideshare driver.

The majority of states are at-fault states. In these states, injured rideshare passengers will file a claim with the at-fault driver’s insurance provider.

Turchin explains that liability is just one hurdle injured victims must overcome. Choosing the right jurisdiction to bring your lawsuit can be a challenge in itself. “[Jurisdiction is] fairly unclear because we’re dealing with the laws of different states. There’s a question of which state law might apply to the situation and which insurance might have jurisdiction over the case. We really hadn’t had to deal with [this issue] before with rental car or taxi accidents.”

Who Is Liable if a Rideshare Driver Hits Me?

As with other car accidents, determining liability after the accident can get complicated. Liability can be even more confusing when one of the drivers is a rideshare driver.

Potential liability will change based on who they were driving for at the time of the accident. If they were driving for personal reasons, it doesn’t matter much that they are a rideshare driver. The driver’s own insurance will handle the claim. If they were logged in and working through the rideshare app, the rideshare’s liability insurance could be liable for compensation.

Can You Sue Uber/Lyft After a Rideshare Accident?

Yes, you can sue a rideshare app after a car accident where a rideshare driver hits you or your vehicle. However, this is not as straightforward as it seems.

Rideshare companies hold themselves out to be technology companies and not in the business of transportation. They also have drivers be independent contractors and not employees. These things are done to insulate the company from liability. However, this does not mean that rideshare companies are totally immune from lawsuits. Turchin explains how someone may have a claim against a rideshare company: “I think in the typical car accident, we’re dealing with the negligence case against the driver. But if there are aggravating factors where the rideshare company itself was negligent, I think that there would be a claim that could be made against them”

A common reason for filing a claim with the Lyft or Uber driver’s rideshare insurance is if their personal policy wasn’t enough to cover your damages. In this situation, the rideshare insurance acts like a secondary insurance that steps in when the first policy is maxed out. An experienced car accident lawyer will have experience with the common defenses used by rideshare companies. They can prepare for these with your car accident case. While this won’t guarantee recovery, it can help.

Find an Experienced Personal Injury Lawyer

It can be difficult to seek compensation when you experience an accident with an Uber/Lyft driver. Rideshare accidents can quickly become legally complex because insurance companies consider them commercial drivers. If they don’t have the right insurance policy coverage, it may not cover your injuries and damages. Working with an experienced rideshare accident attorney to get a case evaluation can help you understand your legal options.

Visit the Super Lawyers directory to search for a rideshare accident attorney who can help you pursue a personal injury lawsuit.