Uber and Lyft drivers should have insurance to cover any injuries incurred in an accident they caused. Rideshare companies require their drivers to use their personal vehicles and carry a personal auto liability policy while also providing additional coverage under certain circumstances.
Both Uber and Lyft provide at least $1 million in liability coverage for drivers when they are picking up a rider or have a rider in the vehicle with them. However, a rideshare driver’s personal insurance policy may be the determining factor if the app was off when the accident occurred. Navigating these types of accident cases can be challenging. Our team can help.
There Should Be Insurance to Cover Your Accident Losses
While sorting out insurance coverage following a rideshare accident is notoriously complex in some cases, there should always be a liability policy in place that provides for your covered losses.
There are large liability policies, contingency policies, and personal auto insurance policies that could cover your injuries and expenses, but which one applies depends on what the driver was doing when the crash occurred.
When you work with a personal injury lawyer from our law firm, we can help you determine the best way to proceed with an insurance claim involving a personal injury policy or a commercial policy. Our team regularly deals with rideshare accident cases and can guide you through the nuances of your case.
What If the Driver Was Not on the App?
If the rideshare driver who caused your accident was not logged in on the rideshare app at the time, their personal car insurance policy is your only option for coverage. The rideshare insurance policy typically does not apply to this situation.
This type of case should proceed like a typical car accident claim. The driver’s personal auto policy kicks in, and you will pursue compensation for your bodily injury and other losses through the driver’s personal auto insurer.
If the driver does not have auto insurance, you may be able to recover compensation through your own insurance provider via uninsured motorist coverage or underinsured motorist coverage.
Contingent Coverage Is Available When the Driver Was on the App But Not Matched
If the driver was working at the time of the accident but was not currently matched with a rider, their personal policy will provide the primary coverage for your claim. However, under some circumstances, a contingency policy provided by the rideshare service company may be in effect. For example, this could occur if:
- The driver’s personal policy denies the claim.
- The driver is an uninsured motorist or underinsured motorist.
- The driver does not have adequate insurance coverage.
If the app is on, a driver is waiting to receive a ride request, Lyft and Uber both offer limited liability coverage. However, the driver may have to file a claim under his or her personal car insurance policy before pursuing compensation through the rideshare policy. If the driver has a rideshare endorsement, this will also provide coverage.
Uber and Lyft’s rideshare policies provide the following coverage:
- $50,000 a person for bodily injury
- $100,000 an accident for bodily injury
- $25,000 an accident for property damage
When the Rideshare Company’s Liability Policy Applies
As soon as a driver agrees to pick up a rider and heads their way, the rideshare company’s liability policy becomes the primary coverage. It remains the primary insurance coverage until the driver drops off the rider. This policy generally covers up to $1 million in damages.
Uber and Lyft both have the following coverage limits:
- $1,000,000 third-party liability
- First-party injury insurance and uninsured/underinsured motorist bodily injury
- Contingent comprehensive coverage and collision coverage, including compensation for the value of the vehicle after a $2,500 deductible
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For a free legal consultation, call (800) 537-8185
Past Concerns Still Cause Confusion for Rideshare Accident Victims
In the early days of Uber and Lyft, accident victims often struggled to recover compensation following rideshare collisions. Many drivers learned the hard way that their personal auto policy would not cover damages that occurred when they were using their car for ridesharing. Moreover, rideshare companies did not provide the coverage available now.
These difficulties and the issues they caused for accident victims are why many municipalities, counties, and states changed their rules for rideshare companies. These changes led to the companies providing the minimum of $1 million in liability coverage and the contingent policy during other parts of the rideshare cycle.
However, the accident must still meet the circumstances outlined above to qualify for coverage from the rideshare company’s insurer. Depending on the specifics of your accident, you may have to deal with multiple insurance companies to recover compensation.
Can I Sue the Rideshare Company for Compensation?
Rideshare drivers are not employees. Instead, they are independent contractors. Though this may not seem like a big difference, it makes it difficult to sue Uber or Lyft for injuries from an accident that one of their drivers caused. These companies are generally not vicariously responsible for these collisions.
You may be able to sue the rideshare driver if necessary. However, this does not happen in most cases. Because the liability insurance coverage limits are so high, negotiating an out-of-court settlement is often possible. Working with a Birmingham personal injury attorney from our firm who knows how to navigate this process can make it easier.
Let Our Uber and Lyft Accident Lawyers Help You
Understanding the type of coverage available in your case can be confusing. Sometimes, the rideshare insurance company covers losses, and sometimes the driver’s personal car insurance policy is in effect. If the driver has a rideshare insurance endorsement, this will affect the case. There can also be coverage gaps between the driver’s personal car insurance policy and the commercial insurance policy maintained by the ridesharing company.
In the midst of all this insurance confusion, you may be dealing with medical bills, ongoing medical expenses, property damage, and other losses. Let us help you navigate this complicated situation and pursue the financial compensation you need.
Speak with Our Team About Your Accident as Soon as Possible
When you hire a lawyer from our team, we will fight to protect your rights and gather evidence to prove your case. We want to help you recover a payout for your injuries and losses.
To begin, our firm offers every caller a free consultation, so you can discuss your legal options with someone right away. This is important because you only have a short time to get started. Evidence begins to disappear quickly. The rideshare driver will be in a hurry to get their car repaired, witnesses may forget what they saw, and local businesses could record over video of the collision.
There are also deadlines for filing a lawsuit that could range anywhere from one to three years after the collision. Our team can identify these deadlines to preserve your right to file.
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Morris Bart, LLC, Will Review Your Case for Free
You can speak with an attorney from the Morris Bart law firm today for free. We represent victims of rideshare accidents in Alabama, Arkansas, Louisiana, and Mississippi.
Call our office now to get started with your complimentary consultation. We will assess your case, determine how we may be able to help and explain how our contingency fee agreement works.
Questions? Call us today to find a Morris Bart office near you.
Questions?Call (800) 537-8185
to find a Morris Bart office near you.