Ridesharing apps such as Uber or Lyft have become popular and convenient for getting rides around town. Most travelers just hop in when their ride arrives and assume the driver is competent to get them where they want to go.
However, what happens if your Uber or Lyft driver gets into an accident? Whose insurance applies and how does an injured passenger go about making a compensation claim? This blog describes who can be liable in an Uber or Lyft accident and how an injured passenger can pursue compensation for losses sustained.
Who is Liable for Injuries to a Passenger in an Uber or Lyft Accident?
The driver responsible for causing an accident is most often the party liable for the damage.
However, determining fault in a car accident can often be complicated. For example, when more than one driver may have contributed to the accident. Then liability will be shared according to each driver’s percentage of fault.
When a driver works for an employer, the employer may also be liable for the driver’s actions.
Rideshare Driver
Rideshare companies vet their drivers. Drivers must have at least one year of driving experience and, in most Texas cities, be at least 21 years old. They must also have driving records free of major traffic violations.
However, if a rideshare driver is negligent or breaks the law and causes an accident, the driver will be primarily liable for any damage to a rider or passenger.
Rideshare Company
Although still subject to some debate, rideshare drivers are generally not considered employees of rideshare companies. Rideshare drivers are independent contract workers. This means that rideshare companies are not legally responsible for the actions of their drivers.
Recognizing the need to ensure rideshare passengers are adequately compensated in the event of an accident, many states, including Texas, require rideshare companies to provide insurance that covers the liability of their drivers.
Another Driver or Other Person outside the Vehicle
One or more other drivers or persons outside the vehicle may have caused or contributed to the circumstances resulting in an Uber or Lyft accident. Each of these other persons may have some liability to an injured rideshare passenger.
Rideshare Passenger
It’s possible an Uber or Lyft passenger contributed to the circumstances, resulting in an accident or injury. For instance, Texas law requires rideshare passengers to wear seatbelts. If a rideshare driver has to make a sudden stop and an unrestrained passenger is injured, the passenger might be found to have responsibility for injuries that could have been prevented by wearing a seatbelt.
A passenger found to have fault for causing their injuries can still recover compensation for the liability of other parties as long as the passenger’s liability is no more than 50%.
Compensation for Injured Uber or Lyft Passengers and Who is Responsible for Paying It
A passenger injured in an Uber or Lyft accident is entitled to recover compensation for economic losses such as medical bills and lost wages and non-economic losses such as pain and inconvenience. Once a compensation amount is established and agreed on, the liable parties or their insurance companies pay the passenger the amount owed.
Rideshare Driver
Rideshare companies require drivers to maintain personal auto insurance coverage in at least the minimum amounts required by their state. However, most personal auto policies exclude coverage when the insured vehicle is used commercially.
Texas requires rideshare drivers to have higher insurance limits than those of typical drivers in the state. The requirements for a driver between rides but logged onto a rideshare app are:
- $50,000 per person bodily injury
- $100,000 per accident bodily injury
- $25,000 per accident property damage
Once a driver picks up and is transporting a passenger, the required insurance limits increase to:
- $1,000,000 aggregate liability for death, injury, and property damage
Rideshare drivers may purchase the additional coverage, or the company may provide it.
Rideshare Company
Rideshare companies are required to ensure their drivers have the necessary coverage. In Texas, these companies are called transportation network companies (TNCs). TNCs must ensure the above rideshare liability limits cover a driver during the respective time periods.
If the required liability insurance is not in place or does not provide the coverage required by law, the TNC will be held liable for providing the coverage from the first dollar of the claim against its driver.
Other Persons or Entities
If other persons or entities contributed to the circumstances causing an Uber or Lyft accident, the other persons or entities may have insurance that could be required to compensate an injured rideshare passenger.
Insurance coverage is written so that if multiple policies could apply to a given situation, they will apply in order. The coverage that applies first is primary, and coverage that applies only after primary coverage is secondary.
Rideshare company liability insurance is underwritten, so it applies only after all other available coverage—the personal liability insurance of the persons involved in an accident—has been exhausted.
What an Uber or Lyft Passenger Should Do After an Accident
If people are injured or there is significant property damage after an Uber or Lyft accident, someone needs to call 911. Uber suggests taking pictures of the damage and accident location and reporting the accident to the rideshare company as soon as it is reasonable to do so.
As soon as possible you should see a doctor acter the accident.
The injured person should keep a log of how their injuries affect them.
The passenger should also report the accident to their auto insurer to preserve any coverage that might be available.
How an Injured Uber or Lyft Passenger Can Make a Claim for Compensation
Settlement of a claim arising from an Uber or Lyft accident can involve negotiations with several insurance companies, all of which are doing their best to minimize their financial responsibility. For those unaccustomed to dealing with insurance company representatives and the claim settlement process, it can be a frustrating and less-than-satisfactory experience.
At the law firm of J.D. Silva & Associates, our rideshare accident attorneys are experienced negotiators who know what insurance companies are required to pay. We fight for the maximum compensation our clients are entitled to. With a Pearland car accident attorney from J.D. Silva & Associates, winning for you is the only option. Request a free consultation.