Rideshare services like Uber and Lyft have transformed transportation across North Carolina, South Carolina, and Georgia. Millions of people use these services for everyday commuting, airport rides, nights out, and more. But as rideshare usage has exploded, so have rideshare-related accidents. When an accident involves a rideshare vehicle, the legal and insurance issues become significantly more complex than a typical car accident case.

The Rideshare Insurance Problem

The core challenge in rideshare accident cases is determining which insurance policy applies. Rideshare drivers are not traditional employees; they are classified as independent contractors. This means the rideshare company's insurance coverage varies depending on what the driver was doing at the time of the accident:

App Off

When the driver's rideshare app is turned off, they are considered to be driving their personal vehicle. Only their personal auto insurance applies. The rideshare company provides no coverage.

App On, Waiting for a Ride Request

When the driver has the app turned on and is available for ride requests but has not yet been matched with a passenger, the rideshare company typically provides limited liability coverage. Uber and Lyft generally provide $50,000 per person bodily injury, $100,000 per accident bodily injury, and $25,000 property damage during this period.

En Route to Pick Up or During a Ride

Once the driver has accepted a ride request and is either driving to pick up the passenger or actively transporting a passenger, the rideshare company's full commercial insurance policy applies. Both Uber and Lyft provide $1 million in third-party liability coverage and $1 million in uninsured and underinsured motorist coverage during this period.

Who Can File a Rideshare Accident Claim?

Several categories of people may be entitled to compensation after a rideshare accident:

  • Passengers: If you were a passenger in a rideshare vehicle that was involved in an accident, you have a strong claim for compensation regardless of who was at fault, since you were merely a passenger.
  • Other drivers: If a rideshare driver caused an accident that injured you, you can file a claim against the rideshare company's insurance.
  • Pedestrians and cyclists: If you were struck by a rideshare vehicle while walking or cycling, you can pursue a claim against the driver and the rideshare company.
  • Rideshare drivers: If you are a rideshare driver injured by another motorist, you can pursue a claim against the at-fault driver. You may also have coverage under the rideshare company's policy depending on the circumstances.

Challenges in Rideshare Accident Cases

Rideshare accident cases present several unique challenges. Insurance companies may dispute which policy applies based on the driver's app status at the time of the accident. The rideshare company may try to distance itself from liability by emphasizing the driver's independent contractor status. Multiple insurance policies may be involved, each with different coverage limits and terms. Evidence about the driver's app status may need to be obtained through the rideshare company's records.

What to Do After a Rideshare Accident

If you are involved in a rideshare accident, call 911 and report the accident, note whether the rideshare app was active on the driver's phone, take screenshots of your rideshare trip details if you were a passenger, document the scene and collect driver information, seek medical attention promptly, and contact an attorney who has experience with rideshare accident claims.

Contact Dr. Ted Injury Law at (800) 555-HURT for a free consultation about your rideshare accident case.