I Was Hit By an Uber or Lyft Driver—What Now?

Key liability and insurance issues if you're in an accident with a rideshare driver.

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  • If you get into a car accident with an Uber or Lyft driver, it's not always easy to understand how the rideshare angle will affect any car accident case you decide to bring. In this article, we'll cover:

    • the basics of the rideshare business model
    • whose car insurance will apply to your injury claim after an accident with a rideshare driver, and
    • how to protect your rights after an accident with an Uber or Lyft driver.

    Uber, Lyft, and the "Rideshare" Business Model

    Uber and Lyft are now ubiquitous in most cities in the U.S., and Uber's imprint is worldwide. Uber and Lyft are similar to many taxi services in that they do not own, operate, or control the cars, and they do not hire the drivers. Rather, the drivers contract with these companies to pick up passengers. Learn more about rideshare drivers and the independent contractor/employee issue.

    Unlike taxis, customers cannot hail an Uber or Lyft driver on the street. Instead, customers download the Uber or Lyft app to their smartphone and arrange for a driver by interfacing with the app. Pricing for a ride can vary. One unusual (and often controversial) aspect of the rideshare model is "surge" pricing, which boosts fare rates when the demand for rides increases.

    Who Pays If You're Hit By an Uber or Lyft Driver?

    In any car accident case, even one that's limited to the insurance claim process, the person bringing the claim must be able to establish two things in order to get compensation: liability (who was at fault for the accident) and damages (how badly the claimant was injured). When you're in a car accident with another driver who was at fault, you can start by filing a third party claim with the driver's car insurance carrier.

    But when the other driver is driving for money, the situation can get complicated. Unless the driver has a commercial policy, or has purchased a ride-sharing "endorsement" (available in a few states), the driver's personal car insurance policy will not cover the accident. That's because the driver's insurance contract specifies that the driver will use the vehicle only for personal use—and ride sharing isn't personal use. The carrier will likely deny any car accident claim made under a personal policy if the accident occurred while the rideshare driver was transporting a passenger.

    Fortunately, Uber and Lyft have responded to this problematic scenario by offering liability insurance to their drivers, which will kick in when the driver's carrier denies the claim (drivers must submit the claim first to their own insurance carriers). So, legal responsibility aside, it's entirely possible to hold Uber or Lyft financially responsible for your car accident injuries when you're in an accident with an Uber or Lyft driver. (It's a similar story when you're injured while riding in a rideshare vehicle. Learn more about Uber/Lyft passenger injury lawsuits.)

    Uber/Lyft Drivers and Car Insurance

    Both Uber and Lyft provide liability coverage for their drivers, and the companies have adopted very similar policies, with coverage that varies depending on when the accident occurs:

    • Period 0: When the driver is not logged into the Uber/Lyft app, Uber/Lyft provides no coverage
    • Period 1: When the driver is logged into the app but has not yet accepted a ride request, Uber/Lyft provide liability coverage for any accident that is the fault of the driver, up to $50,000 per person injured in an accident, and $100,000 total injury liability per accident, and $25,000 property damage liability.
    • Period 2: When the driver has accepted a trip and is on the way to pick-up, liability coverage increases to $1 million.
    • Period 3: When the rider is in the car, ending at drop-off. Liability coverage of up to $1 million, plus limited coverage for damage to the driver's car, and uninsured motorists' coverage.

    What to Do After an Uber/Lyft Accident

    The first thing to do after a car accident is get the names, contact information, and insurance details of everyone involved, and ask any witnesses for their contact information, too. Next, take as many pictures of the accident scene, the vehicles, and anything else relevant to the accident—from as many angles as you can—before you leave the scene.

    You should also call the police from the accident scene. Many states have a law requiring that law enforcement be alerted to any car accident that causes bodily injury or more than minor property damage, but, in any accident involving an Uber/Lyft driver, you will generally want the accident officially investigated as soon as possible, so that you'll have a police report to back up your claim.

    Can I Sue Uber or Lyft?

    Uber and Lyft—and the rideshare-by-app marketplace—are well-established, but legal issues related to these services are still being worked out in the courts.

    If the ride sharing driver was responsible for the accident, you can try to argue that the ride sharing company shares some level of blame for the crash, but this is a murky strategy. Uber and Lyft have worked extremely hard to maintain that Uber and Lyft drivers are independent contractors, not employees, but it's unclear whether or not these companies can continue to shield themselves behind this argument, especially in the face of legislative efforts to have drivers classified as employees.

    In California, for example, a law known as "AB5" is meant to protect Uber and Lyft drivers (and other so-called "gig workers") and make it more difficult for companies to argue that rideshare drivers and deliverypersons are not employees. (More: Are Uber drivers employees or independent contractors in California?)

    In any case, keep in mind that because recovery against Uber or Lyft insurance coverage is probably an option for you—whether through the company's $1 million liability coverage, or through its $1 million UIM coverage—if you're injured in an accident where the ride-share driver was at fault, going after the company directly is probably a last (and hopefully unnecessary) resort.

    If you're involved in a traffic accident with an Uber or Lyft driver, especially if your losses are significant, you might want to discuss your situation with a car accident lawyer.

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