It is no longer necessary to stand on a street corner and hail a cab. Instead, simply download an app on your smartphone, hit a few buttons and your Uber or Lyft driver appears out of nowhere. Modern technology is almost like having a genie in a bottle.
But is all of this as magical as it seems? Is catching a rideshare without risk? As anybody who has been in a car accident with Uber or Lyft will tell you, recent advances in technology also create new legal risks that we all need to be aware of.
Who Is at Fault?
When a rideshare driver gets into an accident, figuring out who is at fault is a daunting task. Do not assume for one moment that you can just walk away and be done with it.
At a minimum, you will be asked to detail your version of events leading up to the wreck, so that insurance companies and law enforcement can determine liability. A Roundup lawsuit was filed against Uber and Lyft alleging that the companies knew or should have known that the glyphosate in Roundup was linked to cancer and failed to warn their drivers and passengers of the risks. If you are injured, be patient and don’t automatically settle. Remember insurers for companies like Uber are notorious for offering low-ball settlements.
If a Passenger Is Hurt, Uber Will Pay, Right?
If you are in an accident involving Uber, you may automatically assume that the company will pay for your injuries. Think again.
Most drivers are not employees, but instead, work as independent contractors. These contractors usually use their own personal automobile insurance rather than insurance that would be in place if you were using a traditional taxi. This means that to receive compensation for your injuries, you must battle with the driver’s insurance company. After suffering injuries in an accident with an Uber or Lyft driver, you may be entitled to compensation, and consulting with an experienced motorcycle accident attorney can help you understand your legal options and pursue a claim.
There are a multitude of reasons why Uber’s policies might fail to meet your needs. The driver’s insurance policy often does not cover driving for profit, which means an automatic denial for you. This is shocking, but it is true.
In addition, the driver is often under-insured, so even if you do get compensation, it is not enough. You may logically go to your insurance company to fill in the gaps. The sad news here is that very few drivers have large under-insured policies, making the payout so low that it only covers a fraction of expenses. A personal injury lawyer can help you understand your rights and options and fight for the compensation you deserve if you are injured in an accident.
How Does Insurance Work for Rideshare Drivers?
It’s not only passengers that face problems because of rideshare services’ insurance conundrum. Sometimes drivers are not adequately compensated after a wreck. As an example, while a driver is on assignment, Uber’s insurance covers the following:
- Personal Liability/Accident – $1 million
- Underinsured/Uninsured Motorist – $1 million
- Contingent Collision Coverage, if you’re already covered by your personal policy
And if you have no assignments, but your app is active:
- Liability Per Injury – $50,000
- Liability Per Accident – $100,000
- Property Damage – $25,000
Uber does offer optional injury protection, but the driver is required to pay for the extra coverage, resulting in additional out-of-pocket costs.
Personal injury protection (PIP) is not available in the state of Illinois. PIP gets medical payments taken care of regardless of who is at fault, but is only available in no-fault states.
Battle Goliath and Win
Rideshare technology has given rise to constantly evolving rules and unprecedented legal hurdles. Car accident attorneys are your best allies, and often have case histories to draw upon that are similar to your own.
6.9 billion trips were taken using Uber in 2019. Yes, that’s billion with a “b.” That’s a lot of money to pay a whole roster of lawyers. Fortunately, you don’t have to battle Goliath yourself, but can instead enter the battlefield armed with everything you need to win your case.
