Rideshare services like Uber and Lyft have completely changed the way we get around, making life a lot easier for you and millions of others across the globe.
To put it in perspective, ride-sharing revenue in the U.S. is expected to hit $61 billion by 2029 – whereas traditional taxi revenue is expected to fall under $19 billion.
As of this writing, Uber and Lyft services are still operated by humans, which means an Uber or Lyft accident can still be caused by human error. If you ever find yourself in this unfortunate situation, knowing the basics of how the law works for rideshare accident claims is very important in getting the highest settlement.
At Manning Herington Accident & Injury Lawyers, we’ve managed hundreds of rideshare accident cases – and they tend to be a bit more complicated than regular car accidents.
In this post, we will explain the 5 key differences between the two.
What Are the Common Causes of Ridesharing Accidents?
Before we get into the differences between ridesharing accidents and regular car accidents, we want to explain that all car accidents share similar causes. Accidents on the road can happen for a million different reasons. Some of the most common causes we see in rideshare accidents involve:
- Distracted Driving
- Traffic Congestion
- Driver Fatigue
- Inadequate Vehicle Maintenance
- Poor Weather Conditions
In the event of a rideshare accident, injury attorneys will work with you, insurance companies, authorities, witnesses, and any other party involved in the incident to establish the cause – then place liability on the at-fault party.
Who is Liable in a Ridesharing Accident?
Determining liability in a ridesharing accident can be tricky. Ridesharing services add a layer of complexity to accident cases – which may lead to more potential at-fault parties. Unlike standard car accidents – where liability typically falls to one or both drivers – ridesharing accidents involve several additional factors, like the rideshare company’s policies and insurance coverage.
Common Liability Scenarios in Ridesharing Accidents
The Rideshare Driver
If the Lyft or Uber driver was negligent — such as driving recklessly, speeding, or being distracted — they may be held liable for the accident. However, their personal insurance policy may not always cover accidents that occur while they’re actively working for a rideshare company, which adds another layer to insurance claims.
Another Motorist
If another driver caused the Lyft or Uber accident, their insurance policy would typically be responsible for covering damages to both you and the rideshare driver. Disputes over fault happen in most car accident claims (rideshare or not). In these cases, your insurance company may work with the rideshare driver’s insurance to gather evidence to place fault on the other driver.
The Rideshare Company
Rideshare companies, such as Uber or Lyft, may share liability depending on the driver’s status at the time of the accident.
The Passenger(s)
This is relatively rare in rideshare accidents, but it can happen. If a Lyft or Uber passenger is acting erratically and distracting the driver, they may be held liable in an accident. This is why many rideshare drivers have cameras inside their vehicles.
Determining liability is the common denominator in all rideshare accident claims. Having a rideshare accident attorney on your side makes a huge difference in untangling the details and fighting for the settlement you deserve.
How Rideshare Accident Claims Are Different from Regular Car Accidents
1. More Complex Insurance Policies
Nearly all rideshare accident claims boil down to negotiations with insurance companies.
When you’re in a standard car accident, you typically deal with the insurance companies of the drivers involved. With rideshare accidents, it can be a different story. Rideshare companies like Uber and Lyft provide insurance coverage to their drivers, but it’s not as straightforward as it sounds. The coverage may change depending on what the driver was doing at the time of the accident.
If the driver wasn’t logged into the Lyft or Uber app, their personal auto insurance generally applies. If they were logged in but hadn’t accepted a ride, the rideshare company’s contingent liability coverage might kick in. In the scenario where there was an active ride or the driver had a passenger, the company’s commercial insurance policy usually takes over.
When you hire an experienced Uber accident lawyer (or Lyft), they can help you sift through the insurance intricacies to hold the liable party responsible and make sure you are paid a rightful settlement for any injuries you sustain.
2. Multiple Parties Involved
Unlike a typical car accident, where you might only deal with the other driver, rideshare accident claims commonly involve several different parties. These may include:
- Rideshare driver
- The company they drive for
- Other motorists who might be involved
- Passengers
Each party involved might have different insurance policies and liability levels, which can make the claims process feel like you’re piecing together a puzzle.
Here’s a complex example: the vehicle’s braking system malfunctions; the driver did not perform the required maintenance on the car; the rideshare company did not confirm the inspection had been done; the passenger panicked and grabbed the driver; the vehicle hits another driver who was making an illegal turn.
In this crazy scenario, every party could be liable for the accident.
Negotiating with multiple parties can be extremely challenging. A rideshare accident attorney can help manage all these moving parts, making sure that every responsible party is held accountable and your claim is handled smoothly.
3. Rideshare Company Liability
In rideshare accidents, you might think the company would be directly responsible for covering damages. This is true in some cases, but there are several variables that come into play. In Colorado, rideshare companies generally classify their drivers as independent contractors rather than employees.
This status limits the company’s liability in accidents. Liability can only be placed on the rideshare companies in a couple of scenarios, including:
Driver Waiting for a Ride Request
If the driver is logged into the app and waiting for a ride request, the rideshare company typically provides limited liability coverage. The driver’s personal insurance may still play a role in the proceedings. These accidents do not typically involve passengers – and the disputes are generally between the driver and the rideshare company.
Driver En Route to Pick Up a Passenger or Transporting a Passenger
When the driver is actively fulfilling a ride request, the rideshare company’s insurance coverage is generally in full effect. This coverage may include up to $1 million in liability for bodily injury and property damage.
Even though rideshare companies provide insurance under specific conditions, figuring out when and how this coverage applies adds a big layer of complication of accident claims.
4. Different Legal Requirements
Rideshare drivers have specific legal requirements they must meet, and these can impact rideshare accident claims.
For starters, drivers need to:
- Have a valid driver’s license
- Pass background checks
- Keep their vehicles maintained to certain standards
If a driver or the rideshare company doesn’t meet these requirements, it might change who’s liable in an accident and how your claim is processed. For example, if the rideshare company fails to perform a proper background check, they are held partially (or fully) liable for an accident caused by the driver.
Another example would be due to insufficient maintenance. Rideshare companies have standards for vehicles used and require drivers to pass periodic inspections. If the driver did not perform the inspection – and the rideshare company didn’t enforce it – both parties may be liable.
These regulations can dictate insurance coverage levels or set standards for driver conduct.
5. Potential for Higher Settlements
Since rideshare companies like Uber and Lyft have substantial insurance policies in place, claims related to rideshare accidents can sometimes result in more compensation compared to regular car accidents. This means there’s a greater chance of covering medical expenses, lost wages, and other damages.
However, these insurance companies do not part with their money easily. Securing a fair settlement isn’t just about the size of the insurance policy. It requires a deep understanding of the rideshare industry and strong negotiation skills.
In other words, trying to negotiate a fair settlement without a skilled attorney is very difficult – and in some cases, nearly impossible.
This is why a rideshare accident lawyer is so important in these claims. They can help maximize your settlement by making sure that all aspects of your case are thoroughly examined and that you receive the compensation you deserve.
Speak to a Denver Rideshare Accident Attorney
Rideshare accident claims have a unique set of challenges that set them apart from regular car accidents. From complex insurance policies to multiple parties involved, the process can become very intricate during the negotiation phase.
Having a skilled rideshare accident attorney on your side makes all the difference in getting the settlement you deserve for medical bills, property damage, lost wages, etc.
At Manning Herington Accident & Injury Lawyers, we specialize in rideshare accident claims in Colorado and have helped hundreds of people manage the claims process. We offer FREE consultations to victims of these accidents – and we don’t charge any out-of-pocket fees unless we win the case.
Call 720-649-4747 or fill out the form on our website to speak with a Lyft accident lawyer/Uber accident attorney.