Rideshare apps such as Uber and Lyft have become extremely popular in the last decade. Not only is ridesharing a common mode of transportation for users, but it’s also an easily accessible source of income for drivers. However, car accidents are inevitable even with rideshare services. No matter if you are the rideshare driver, rideshare passenger, or another driver, it’s important to know what to do in this situation. Continue reading to learn what happens if you’re involved in a rideshare accident.
You’re in an accident while driving for Uber or Lyft:
As a driver for a ridesharing app, there are several factors you must consider after getting into an accident.
- When the rideshare accident occurred
Determine if the rideshare company’s policy is in effect and what insurance coverage will be applied.
If the rideshare app is off, the rideshare driver’s personal car insurance policy will be used.
Suppose the rideshare app is on but is waiting to accept a ride with a passenger. In that case, the rideshare company’s policy will provide third-party liability protection up to the legal requirement of the state. This liability protection typically includes $25,000 per accident for property damage, $50,000 per person for injuries, and $100,000 per accident for injuries. It’s important to note that this is only liability coverage, meaning the rideshare driver’s own injuries and vehicle damage is not covered. Also, this coverage will only be utilized if the driver’s personal policy is not applicable or insufficient.
If the rideshare driver is actively transporting a passenger or is on the way to pick up a passenger, the rideshare car insurance policy will go into effect. This insurance policy should include uninsured/underinsured coverage, contingent collision & comprehensive coverage with a $2,500 deductible, and third-party liability coverage up to $1,000,000. The uninsured/underinsured coverage will apply to the rideshare driver in the event the accident is at the fault of the other driver and the other driver does not have proper car insurance coverage.
- Where the rideshare accident happened
The state where the rideshare accident occurs decides if there are specific car insurance coverage requirements that need to be met by the rideshare company.
- Who was at fault in the rideshare accident
The driver at fault will determine what claims process needs to be followed. If the other driver is at fault, the rideshare driver will need to file a claim with the at-fault driver’s insurance company. Even if the rideshare driver resides in a no-fault car insurance state and has personal insurance protection, the rideshare driver will still need to file a claim with the at-fault driver’s insurance company. If the claim results in an insufficient payout, the rideshare driver can then submit an uninsured/underinsured claim with the rideshare company.
If the rideshare driver is at fault and needs compensation for injuries or damage, the rideshare driver needs to file a claim with their personal car insurance company. However, this claim is likely to be denied unless the rideshare driver has a rideshare policy or a rideshare endorsement since the driver was participating in commercial activity at the time of the accident.
If you were hit by a Lyft or Uber driver:
A car accident will be handled differently if it involves a rideshare driver.
If you’re hit by a rideshare driver, the driver’s personal insurance policy will not cover the accident unless the driver has a commercial policy or a ride-sharing endorsement. The personal car insurance policy will not cover damages since the driver is engaging in commercial activities when the accident occurred, not personal use which is what the insurance policy is made to cover. However, the rideshare company should offer liability insurance to their drivers in the event of an accident. This allows you to hold the rideshare company financially responsible for any injuries and damage you sustained in the accident.
After the accident, you need to get the name, contact information, and insurance information of the rideshare driver, just as you would after a regular accident. Then take photos of the scene, the vehicles, and any other relevant information. Be sure to call the police to file an accident report so you have documentation to back up your claim against the rideshare company.
No matter if you have been hit by a rideshare driver or you are a rideshare driver that has been involved in a car accident, it’s helpful to have an experienced attorney on your side. Our lawyers at Glass & Robson are happy to help navigate your case to help you achieve the best outcome possible. Schedule your consultation today.