There are many conveniences to living in a large city; parking is not one of them. Due to the lack of space for a vehicle, ridesharing services have become extremely popular. Since many residents do not have their own vehicles, these other methods of transportation have proven invaluable.
Ridesharing apps, such as Uber and Lyft, launched in 2011 and 2012 respectively, are now worth billions of dollars. Although their success as start-ups has been somewhat unprecedented, they are not without their own set of issues. One such issue: accidents.
Involvement in Ridesharing Accidents
Since Uber’s and Lyft drivers sometimes find themselves involved in an accident, the question of what passengers should do in these situations remains ever-present. Generally, the at-fault driver is assigned the financial responsibility, but in certain circumstances, the ridesharing company has its own car insurance coverage, which may come into play.
In theory, the ridesharing driver’s car insurance would be applied to passenger injuries. However, this is only if he or she has either a commercial policy or a personal car insurance policy, along with a provision providing for insurance when engaged as a ridesharing driver. Unfortunately, most ridesharing drivers do not have such policies.
Liability Insurance Coverage
Uber or Lyft’s third-party liability insurance coverage pays up to $1 million for personal injuries and property damage per accident. This is the first thing that passengers will go to. This insurance policy would take effect only if the ridesharing driver’s policy, if applicable, fails to fully compensate you.
In a situation where a third-party driver is at fault, you would look to recover from the third-party driver through their car insurance policy or a personal injury lawsuit.
UI/UIM Insurance
If this still fails to fully compensate you, the ridesharing company’s uninsured/underinsured (UI/UIM) insurance coverage would then apply. This coverage usually also provides $1 million in coverage per accident.
Since Uber and Lyft drivers are legally held as independent contractors, these ridesharing companies are in no way directly liable for the negligence of their drivers. This makes it much harder to go after them directly, rather than through their liability of UIM coverage.
With so many complex legal issues still at play, it is important to consult with a knowledgeable and experienced Texas Personal Injury Attorney who can explain your options and your rights and help you to achieve the best outcome.
The Attorneys at Arizona Lawyers Can Help Those Who Have Been Injured in a Ridesharing Accident
At Arizona Lawyers, our Personal Injury attorneys have years of experience working with victims of auto accidents and negotiating with insurance companies. You should never have to pay the price for the negligence or recklessness of another. To learn more or to schedule a free consultation, contact us today!