Ridesharing, or rideshare, has turned into one of the most popular forms of transportation internationally, especially in large U.S. cities like San Francisco, New York City, Atlanta, Philadelphia, and many more. In fact, rideshare companies like Uber and Lyft have collectively completed 11 billion rides in the United States since they were introduced in 2009 (Uber) and 2012 (Lyft). Uber completed 4.98 billion rides in 2020 alone, which is approximately 45 rides per second.
A study done by The University of Chicago's Booth School of Business shows that:
The unfortunate fact is that, like many forms of transportation, accidents are going to happen. And rideshare accidents are no exception.
According to Oxford Languages, ridesharing is an arrangement where a passenger travels in a personal automobile driven by its owner, for free or for a fee, usually set up using a mobile app or a website. Ridesharing often refers to carpooling, vanpooling, or peer-to-peer ridesharing.
A ridesharing company is a company that, by means of mobile apps and websites, matches passengers with drivers of a car for hire that, unlike taxis, cannot legally be hailed from the side of the road. The two biggest ridesharing companies are Uber and Lyft.
Ridesharing companies, such as Uber and Lyft, have become very popular recently, as individuals are searching for a more economical and fuel-efficient way to travel. With the increase in technology and the ability to reserve rides straight from your mobile device, this industry has proven to be easier for most people than the traditional method of hailing a taxi.
Uber and Lyft are now ever-present in the majority of U.S. cities, and Uber's imprint is international. Both Uber and Lyft's services are similar to that of taxi services, in which they do not operate, own, or manage the vehicles, and they also do not hire the drivers themselves. Instead, the drivers are contracted out through these companies to pick up individuals or passengers.
Unlike taxis, passengers cannot hail an Uber or Lyft; instead, they download the Uber or Lyft app to their mobile device and arrange for a driver to pick them up at a particular location by interacting with the app. Prices typically vary for rides; however, one controversial element of ridesharing is "surge" pricing, where costs are increased when the demand for trips increases.
Like any other form of transportation, accidents are going to occur. And rideshares are no different. Much like any other vehicle accident, the individual filing a claim needs to be able to prove two things: liability and damages. When you are involved in an accident with another chauffeur, and they are the ones at fault, you must start by submitting a third-party claim with the driver's insurance provider. But the question is, will their insurance cover damages?
When a driver is driving to make money, it becomes challenging. Unless the driver has a commercial insurance policy or has acquired a ridesharing "endorsement" (provided by Uber and Lyft in select states), the driver's personal car insurance policy will not cover the accident. This is because the policy specifically states that "the driver will utilize the car that is insured only for personal use," and ridesharing is not personal use. Do not be surprised when your car insurance carrier rejects any vehicle accident claim made under a personal policy if the accident occurred while a rideshare driver was carrying you (a passenger).
Due to the growing industry and unforeseen accidents, Uber and Lyft have reacted to this troublesome situation by offering their drivers' liability insurance coverage, which only starts when a driver's personal insurance provider denies the accident claim. It is crucial to keep in mind that even though a rideshare driver's personal insurance carrier will deny the claim, to still submit a claim with them first in order to use your liability insurance coverage. No matter the scenario, it is possible to hold Uber or Lyft financially accountable for any injuries you suffer when involved with a vehicle accident with a rideshare driver (it is likewise similar if you have been hurt while riding in a rideshare car).
The unfortunate fact is that when a vehicle is involved in a car accident, in this specific case Uber or Lyft cars, passengers can be severely hurt, or even worse, killed. Many of the steps you should take after being injured in a rideshare accident remain the same as any other car accident.
Typically, in any type of passenger injury claim after a car accident, the car insurance coverage of the person that caused the accident will apply to the passenger's injuries.
If the rideshare driver is at fault for causing the accident, the passenger would likely file a claim either through the rideshare driver's personal car insurance coverage or the liability coverage supplied to drivers by Uber or Lyft. The majority of the time, it will be the Uber or Lyft liability coverage that applies, but the rideshare driver could have a commercial insurance policy or a personal insurance policy with special endorsements that offer protection for accidents that take place when driving for a rideshare company.
The liability coverage that both Uber and Lyft offer to their drivers varies depending upon when the accident occurs:
If the non-rideshare driver caused the accident, the injured passenger would submit a claim with that driver's individual insurance policy. This claim would be submitted by means of a third-party automobile insurance claim against the driver who caused the accident's vehicle insurance coverage carrier or through an accident claim.
Nevertheless, it is possible that the non-rideshare driver who caused the accident does not have any car insurance coverage at all or lacks sufficient insurance coverage to pay for your injuries. If this is the case, the injured passenger can file a claim through the rideshare company's uninsured/underinsured motorist coverage.
If you are harmed as a rideshare passenger, your injuries will probably be covered by insurance, but the big question is, "Whose insurance policy applies to cover these expenses?"
Unfortunately, this is a legal gray area, and it's growing rapidly. Due to the fact that of the legal relationship between Uber/Lyft and their drivers, these companies typically do not hold legal liability for injuries that are the outcome of a rideshare accident, no matter who is at fault for the accident (financial liability is an unrelated issue).
In order for Uber or Lyft to be held legally liable for a passenger's injuries, primary or vicarious liability need to be present.
However, because rideshare drivers are considered independent contractors for Uber/Lyft, not employees, the application of vicarious liability is not an adequate fit when the rideshare driver caused the accident.
This contrast makes a big difference for Uber and Lyft because they can avoid legal responsibility for their driver's habits and save tons of money by paying fewer taxes, providing practically no benefits to their drivers, all while preventing the workers' compensation insurance scheme.
That is on the legal side; however, on the practical side, if a passenger winds up hurt while ridesharing, Uber or Lyft will more than likely be held financially responsible for their injuries. Most states require rideshare companies to provide insurance coverage to compensate those that are hurt in a rideshare accident. Although, how much insurance coverage depends upon when the accident occurs and whether you were an Uber or Lyft passenger or a passenger in another car.
If you have been injured in an accident and are a paying rideshare passenger at the time of the mishap, the maximum protection you will receive from Uber or Lyft car insurance coverage, as stated above, is up to $1 million.
On the other side, if you are a passenger in a vehicle that is not rideshare but are struck by a rideshare driver, the amount of insurance coverage you will receive from Uber or Lyft vehicle insurance will depend upon the working status of the rideshare driver:
An essential thing to note is that insurance protection offered by Uber or Lyft is dependent on the rideshare driver also having a personal vehicle insurance policy. It is vital to keep in mind that if the rideshare driver caused the accident, you need to first file a claim with their personal automobile insurance company. But in the majority of cases, no other coverage will be applied because unless a driver has a rideshare endorsement, their personal car insurance policy will not cover accidents that occurred while a driver is performing commercial activities, such as driving for a rideshare company such as Uber or Lyft.
The value of a personal injury claim comes from the extent of the hurt individual's injuries and other losses they have experienced. Losses (or damages) as a hurt rideshare passenger normally consists of the following elements:
Lost earnings play a role in identifying the value of a hurt person's claim because, in most cases, injuries prevent people from working, otherwise restricting someone's capability to earn a living for themselves. If injuries prevent someone from working for, say three months, then the lost earnings element of a claim will equal the earnings an individual would have made had they worked for those three months.
Generally speaking, previous and future medical costs are straightforward—an injured person receives financial compensation for any medical bills they sustained as a direct result of the accident. Things can become complex when the severity of an injury is unclear, and in some circumstances, there can be disputes over whether a few of the medical expenses are the result of pre-existing injuries.
For example, say a person has a neck injury that has existed prior to them being injured in a rideshare accident. Then this person declares part of the rideshare accident medical expenses included treatment for their neck. There is the possibility that an insurance provider will argue that they will not include compensation for medical costs associated with neck treatment. When something occurs like this, it is important to have an experienced vehicle accident lawyer on your side.
Pain and suffering damages are the most complex to determine in an injury claim because it is difficult to put a monetary value on those kinds of losses.
It is not necessary to submit a rideshare passenger injury claim; however, it will depend upon the approach the vehicle insurance provider will take on the claim. For the most part, the reason someone decides to submit a personal injury claim is that the insurance company (Uber/Lyft) is not making a reasonable settlement offer.
The fact of the matter is that it is uncommon for a rideshare passenger injury claim to result in a lawsuit. Typically, both sides are motivated to settle the claim because they understand the expenses that come with going to court along with the unforeseeable results. However, in the rare chance a lawsuit is necessary, it is important to consider hiring an experienced lawyer to help you navigate the complicated legal process.
In the instance that you do file a claim and have already hired an attorney of your choice, it is a good idea to come to the first meeting prepared. A few of the relevant documents you need to bring include:
Although the legal process can be overwhelming, the right attorney can assist in making it less stressful. Our attorneys at The Cochran Firm are ready to fight for the payment you deserve during this difficult time. Contact us today for a free, no-obligation initial consultation regarding your rideshare accident claim.
The attorneys at The Cochran Firm are among the nation’s most successful and tenacious attorneys. When navigating through the legal process, you deserve to have an experienced attorney by your side. The Cochran Firm attorneys know how to fight for you.
Here at The Cochran Firm, our experienced attorneys are ready to help you or someone you love that has been involved in a ridesharing accident that resulted in injuries. Our attorneys work closely with each of our clients using pooled resources and their access to legal expertise to ensure the most effective legal representation available is provided.
You need the help of an experienced attorney who has proven successful results in other similar cases to guide you through the process and help you to receive the monetary damages you are entitled to under the law. Our attorneys have won over $30 Billion in verdicts and settlements for our clients. At The Cochran Firm, we have the offices, the experience, the results, and the resources to aid clients throughout the United States.
If you’re looking for an experienced rideshare accident attorney to help you pursue justice for your medical costs, lost work, lasting injuries, and more, please contact our attorneys at The Cochran Firm today for your free, no-obligation initial consultation today. We serve the entire country with offices in many major U.S. cities.
