Who Is Liable in a Rideshare Car Accident?

Mega-rideshare companies like Uber and Lyft have revolutionized the way we travel, both on vacations and business trips away from home and within our own communities. The appeal of a convenient private ride available at the swipe of an app is greater than a crowded city bus or a long wait for an expensive taxi service; however, a University of Chicago study shows an overall rise in car accidents by as much as three percent since rideshares became popular.

After the initial trauma of a rideshare accident, many injury victims assume that they’ll recover ample compensation from Uber or Lyft. After all, large rideshare companies should be more than able to provide compensation, right? Unfortunately, our Atlanta personal injury attorneys explain this is a common misconception.

Rideshare Companies Are Rarely Liable for Accidents

Both Uber and Lyft companies protect themselves from liability for car accidents by using independent contractors as drivers rather than direct employees. They maintain their status as tech companies that only sell a product—an app for connecting drivers with passengers. This insulates them from any direct fault and liability for damages if an independent contractor has an accident. Fortunately, they do require contracted drivers to carry special rideshare insurance. This multi-tiered insurance provides compensation to injury victims depending on the stage of the rideshare experience when the accident occurred.

How Does Rideshare Insurance Work?

When a rideshare driver isn’t at fault for an accident, injured passengers may recover compensation for their damages like medical expenses and lost wages from the at-fault driver’s insurance policy. If the rideshare driver causes the accident, an injury victim who was a rideshare passenger at the time of the accident, an injury victim in another vehicle in a collision caused by the rideshare driver, or a pedestrian hit by a rideshare driver may recover compensation through a claim against the rideshare driver’s insurance. Coverage depends on the stage of the rideshare at the time the accident occurred. Under the unique way that a rideshare driver’s insurance works, the injury victim may recover compensation in the following way:

• From the driver’s personal auto insurance if the driver was using their vehicle for personal reasons and not as a rideshare vehicle when the accident occurred
• From the lower-tiered rideshare insurance coverage if the driver had their app turned on and the accident occurred while they were awaiting a passenger to request a ride. This coverage provides up to 25,000 in property damage, $50,000 per person in personal injury coverage, or $100,000 total per accident
• From the top-tier policy once the driver books a passenger and during the drive to the pickup location. Then throughout the rideshare journey with the passenger, the top-tier coverage is in place with up to $1 million per accident

Although Uber and Lyft companies are not liable for a car accident victim’s damages after an accident, the insurance coverage available through rideshare driver’s insurance helps cover common damages.

What Are Common Damages an Accident Victim Recovers From a Liable Driver After a Rideshare Accident?

Depending on the circumstances of the accident, whether the liable party is the rideshare driver, another driver, or—less commonly—the manufacturer of a defective auto part or a negligent road planning or road maintenance agency, an injury victim commonly recovers economic and non-economic damages. This can include property damage, medical expenses, lost wages, and compensation for pain and suffering. In some cases, additional non-economic damages apply like disfigurement, loss of limb, loss of one of the senses, or diminished quality of life.

An experienced Altanta car accident lawyer helps injury victims recover the most compensation available to them by investigating the accident to provide compelling evidence in a claim against the appropriate insurance policy.