Rideshare apps such as Uber and Lyft are an enormous industry. With more than 15 million rides shared per day, there are bound to be a few accidents. When that happens, it’s good to know who pays for a rideshare accident.
Who Holds Liability?
Uber and Lyft drivers are not classified as employees. Rather, they fall under “independent contractors.” This makes it difficult to file a lawsuit against rideshare companies directly. However, both Uber and Lyft now offer liability insurance that benefits both riders and drivers in the event of an accident.
Typically, rideshare companies apply their liability insurance when a driver’s personal insurance cannot cover the damages fully. However, the exact amount they offer depends on whether a passenger was in the vehicle.
Why Timing Matters
Rideshare companies divide a driver’s time into periods. The amount of liability insurance offered highly depends on where the driver is in the rideshare process.
Period 0: The app is turned off
The driver gains no additional insurance from the rideshare companies and must use their personal insurance for all accidents.
Period 1: Looking for a rider
The driver gains third-party liability coverage, totaling roughly $175,000.
Period 2: Matched with a rider
Once matched, the driver gains an additional $1,000,000 in third-party liability coverage.
Period 3: Passenger in the vehicle
Once the rider is in the car, the ride gains uninsured motorist liability and collision protection in addition to the previous third-party liability coverage. This coverage applies until the passenger leaves the vehicle, at which point the driver returns to Period 1 protection.
Rideshare accident liability can be difficult to understand, especially if the Uber driver is the one at fault. That’s why you may want to speak with an attorney after your accident as they can handle complicated paperwork and negotiate with the insurance companies.
If you suffered injuries in a rideshare accident, you might be entitled to rightful compensation. If you’d like a Miami auto injury attorney from Julian Rudolph Law to evaluate your case, please send us an email or call (305) 300-2702.