Ridesharing companies Uber and Lyft have become a popular alternative to taxis and public transportation. Whether you are visiting a new city, commuting to work, or have been out all night drinking with friends, you can request a ride through a smartphone app and wait a few minutes until the driver arrives to take you to your destination.
But what happens when you are involved in a car accident with an Uber or Lyft driver—whether you are a passenger or driving another vehicle? In most cases, injured victims must file a claim with the at-fault driver’s insurance company.
According to these ridesharing companies, their drivers are considered independent contractors, rather than employees. So, if you are injured in a collision caused by an Uber/Lyft driver while riding as a passenger or driving your own car, you must file your claim to the ridesharing driver’s insurance company—if he/she has a special provision in their personal coverage concerning ridesharing services or has a commercial insurance policy.
However, most Uber/Lyft drivers do not have this type of coverage or provision which will cover your injuries. Additionally, their personal coverage doesn’t often include a “business use exception,” meaning it won’t cover your damages and injuries since the at-fault driver was driving for business purposes.
Fortunately, Uber and Lyft carry third party liability insurance coverage. Keep in mind, these policies will take effect once the ridesharing driver’s won insurance has been depleted—if they have the right type of coverage.
The following are the policies provided by Uber and Lyft in the event of a car accident, if the driver:
- When the driver hasn’t logged on the Uber/Lyft app – Ridesharing companies will not provide coverage.
- When the driver is logged on but hasn’t accepted a request for a ride yet – If the driver collides with another vehicle, the ridesharing companies provide up to $50,000 per person involved, $100,000 per accident, and $25,000 in property damage liability.
- When the driver has accepted a ride request – Ridesharing companies provide $1 million worth of liability coverage.
If you have been involved in an Uber or Lyft accident in Fort Worth, our experienced legal team at the Law Office of James M. Stanley can guide you through the complexities of your case, protect your rights, and maximize your entitled settlement.