If you’ve been in an accident involving an Uber or Lyft vehicle, the claims process can be confusing. It doesn’t matter if you’re a passenger in a rideshare vehicle, a Lyft or Uber driver yourself, or an innocent bystander. If a ridesharing vehicle is involved, the legal waters get murky.
The confusion is understandable. The ride-sharing phenomenon is relatively new. We aren’t necessarily thinking about the driver or the rideshare company’s auto insurance coverage when we call for an Uber or Lyft. An Uber or Lyft ride is generally the beginning or end of an evening out. Not a time to think about who is or isn’t liable if there’s a car crash.
That said, accidents come out of nowhere. They’re not anticipated. And, with so many Uber and Lyft cars on the road these days, we’re seeing an unprecedented number of ridesharing car accidents.
If you’re in an accident with a ridesharing car, do you know…
Who will pay for your injuries – the driver or Lyft and Uber?
If the driver is technically an employee of Lyft or Uber?
How the laws or insurance guidelines are currently written when it comes to rideshare accidents?
There’s no shame if you can’t answer these questions. Most people don’t think of them until they’re involved in an accident with a rideshare vehicle.
In this blog post, the Los Angles area car accident attorneys at M.R. Parker Law P.C. answer a few questions people commonly have when they’re in an accident with an Uber or Lyft vehicle.
Can Uber or Lyft Be Sued Directly?
This is a common question after an accident with a rideshare vehicle. It makes sense. Uber and Lyft are publicly traded companies worth billions. They have way more money to pay out than Larry the Lyft driver. There’s more money to pursue by suing them directly. So, can Lyft or Uber themselves can be liable for injuries and property damage? Let’s say, for instance, if its found they didn’t properly screen the driver representing them?
Unfortunately, directly suing Uber or Lyft isn’t an option for most. This is because drivers for these and similar ridesharing companies are classified as independent contractors – not as employees of these companies. This means the companies themselves can’t be held liable for an individual driver’s negligence or even their own.
Clearly, this isn’t coincidental. These ridesharing companies do this to protect themselves from crash-related lawsuits. Not to mention it’s also a means for them to skirt around numerous labor laws.
There’s good news though. This doesn’t mean your payout is limited to the driver’s personal auto insurance coverages. These companies carry their own auto insurance coverage. High-limit coverage that’s well beyond the coverages on a driver’s policy. Every vehicle transporting passengers for these companies carries the company’s auto insurance. This is in addition to the driver’s individual auto insurance coverage.
The tricky part is which coverage applies in what scenario.
Understanding Insurance Coverage for Uber and Lyft Crashes
Any reputable ridesharing company will require its drivers to carry their own auto insurance coverage. Prominent ride-share companies like Uber and Lyft also have additional insurance policies in place to better protect the driver and passengers if there’s an accident.
Whether or not these coverages can be applied to your accident depends on the driver’s status on the Uber app at the time of the accident. Here’s a breakdown:
- NOT AVAILABLE: A driver’s personal auto insurance policy applies if they had their Uber/Lyft app off and weren’t working at the time of the accident. For instance, even if you’re in an accident where the car that hit you has an Uber sign in its window, only that driver’s personal auto insurance policy can be applied if the driver is using their vehicle to run personal errands and weren’t signed into the app and accepting rides at the time.
- AVAILABLE BUT NO PASSENGER: The rideshare company’s insurance will pay up to $50,000 per person for bodily injury, $100,000 per accident total for bodily injury and $25,000 per accident for property damage if the driver’s app is running and in driver mode but there’s no active ride at the time of the accident. NOTE: This only applies if the driver’s personal auto coverage has lower coverage limits than the aforementioned.
- AVAILABLE & CARRYING A PASSENGER: If the accident occurs at any point from the time the driver accepted the ride request to the time they dropped off the passenger, the rideshare company’s insurance will pay liability and uninsured/underinsured motorist coverage up to $1 million per accident for injuries. Contingent collision and comprehensive coverage up to the cash value of the vehicle or its repair cost, whichever is less, is applied to property damage.
Here’s what you need to remember. Lyft and Uber’s insurance is out to pay as little as possible in claims. They’ll very commonly find reasons to deny a claim. There are all kinds of loopholes protecting them from paying out. The big one is ridesharing companies not classifying their drivers as employees and the driver’s status on their app at the time of the accident.
A driver’s personal auto insurance will also commonly finds reasons to deny a ridesharing claim. One common workaround for them is language in the insurance policy prohibiting the insured driver from driving for work purposes or transporting passengers – ie using their car as a taxi. Anyone looking to add income by driving for Lyft or Uber ABSOLUTELY MUST notify their auto insurance company first.
Can I file a Lawsuit After a Lyft or Uber Crash?
Just like any other automobile accident, an experienced attorney can improve the likelihood of you getting a fair settlement from Uber, Lyft, or the driver’s auto insurance company.
To better your case, be sure to keep a detailed record of any medical bills or expenses you’ve accumulated that can be directly tied to injuries from the accident. Have consistent details from the accident – your own or those of witnesses you talked to – ready. You should speak with an attorney before talking to any insurance company. Remember, the insurer will try to trip you up so there are holes in your story. This is their way to minimize your claim and payout as little as possible. This applies to any car accident-related lawsuit – not unique to just Uber or Lyft accident claims.
You can try a DIY approach but do you really know the intricacies of Lyft & Uber accident claims like a seasoned attorney who has taken giants like these companies and their insurers on and won? Do you have the time for all the procedural work necessary to file a lawsuit? Can you keep track of all the paperwork and filing deadlines?
While this isn’t implying that it’s impossible to get fair compensation after a Lyft or Uber accident without an attorney, these can be complex cases. Not having legal representation is a recipe for unknowingly settling for less than you deserve.
LOOKING FOR A LOS ANGELES LYFT OR UBER CAR ACCIDENT ATTORNEY?
Contact M.R. Parker Law, PC if you’ve been injured in an accident involving an Uber or Lyft vehicle in or around Los Angeles. The consultation is free and we can take most cases on a contingency fee basis – meaning you won’t pay an attorney fee until we get money for you! Please call us today at (818) 334-5711 or fill out our online contact form to schedule your free consultation today.
