Ridesharing services like Uber and Lyft have grown rapidly in recent years. These services give riders an inexpensive and convenient way to travel without driving. However, proving liability in an Uber or Lyft accident can be complicated. If you are injured while using a rideshare service, you need to understand how liability works.
Rideshare services operate similarly to taxis, but they follow different rules. The company does not provide the cars or drivers directly. Instead, it connects riders with independent drivers who use their own vehicles. This structure affects how accidents are handled and who may be responsible.
Who Is Responsible in an Uber or Lyft Accident?
Many people assume the rideshare company automatically bears responsibility. In reality, liability depends on driver classification. Uber and Lyft drivers are independent contractors, not employees. Taxi drivers are usually employees, so taxi companies must cover accidents their drivers cause on duty. Because rideshare drivers are contractors, Uber and Lyft generally avoid direct liability. However, both companies maintain extensive insurance policies.
Rideshare Insurance Coverage
Insurance coverage depends on whether the driver is carrying a passenger, waiting for a passenger, or unavailable for rides.
Unavailable for Rides
If a driver is off-duty and not accepting riders, their personal insurance applies. The rideshare company’s insurance does not cover accidents during this time. For example, if you ride with a friend who drives for Uber or Lyft off-duty and they cause an accident, you can file a claim against your friend’s insurance, not the rideshare company.
Available for Rides
When a driver waits for passengers but has no riders in the car, rideshare insurance applies under certain conditions. The driver’s personal policy must pay up to its limit before the company’s coverage begins. The driver must request this coverage.
Carrying a Rider
Once the driver accepts a ride, the rideshare company’s $1 million policy becomes primary coverage until the ride ends. The driver’s personal commercial rideshare policy may also provide coverage. The policy protects third parties, including pedestrians and bicyclists.
Even with coverage, insurance companies may deny claims. Drivers who act recklessly or under the influence make it difficult for riders to secure compensation. Riders can file a lawsuit against the company, the driver’s personal insurance, or the driver directly. Each option has challenges and limitations.
Get Help With Your Claim
Our Rhode Island car accident attorneys can help you fight for the compensation you deserve. Taking on a large rideshare company requires experience and strategy. At Inman & Tourgee, our attorneys guide clients through every step. With over 125 years of combined experience, we provide skilled legal representation and personalized service. Contact us today to schedule a free case evaluation. Call (401) 823-9200.
