Who Pays For A Crash Done By An Uber or Lyft Driver?
Uber and Lyft has innovated the way commuting works. Who would have thought that you could just use your smartphone to order a car and pay for the ride – all without having to hail a cab or drive your own car?
But as with any new technology or business model, there are always growing pains. And one of the issues that Uber and Lyft are currently facing is what happens when their drivers get into accidents. Who pays for a crash done by an Uber or Lyft driver? The driver? The passenger? Uber or Lyft? This article will discuss how these companies handle rideshare accidents, and who ultimately foots the bill.
Getting into an Uber or Lyft accident is not a pleasant experience. But the good news is that you may be entitled to receive compensation after the rideshare accident. If you are in Florida, contact Hallandale Beach Accident Attorney Jared Spingarn to schedule a free consultation and be guided on how to go about the legal process.
Understanding Liability
It’s important for rideshare drivers to know that they don’t work for Uber or Lyft as a regular employee. Instead, they provide their services to these rideshare companies as an independent contractor. For this reason, people injured in rideshare accidents can’t automatically file claims against these companies after an Uber or Lyft Accident. However, note that this is on a case-to-case basis. You may be eligible to file an insurance claim under the personal auto insurance of the rideshare driver, or file a claim against these rideshare companies.
These rideshare companies also offer insurance policies for passengers and drivers in case a rideshare accident occurs. The coverage will begin once you activate the app. While looking for passengers, Uber drivers will have additional coverage for their vehicles on top of the usual insurance policies. Insurance premiums dramatically increase when passengers meet with their drivers or book a ride request.
Key Liability Insurance Claim Issues if You’re in an Accident involving Rideshare Drivers
Both Uber and Lyft have been connecting drivers with millions of people since their inception. How does this impact pedestrian and bicycle traffic? One study published by the Becker Friedman Institute in 2020 reported ride sharing had a 2% to 4% increase in fatal accidents between 2015 and 2016.
If you have been hit by Uber drivers or Lyft drivers, you may want to ask who pays for a crash done by an Uber or Lyft driver? What compensation can be obtained to recover damages? Do drivers have to pay medical bills to get their licenses recertified? Is Uber or Lyft liable?
Timing Matters
A key element to answer who pays for a crash caused by an Uber or Lyft Driver is the timing when the incident took place. Rideshare companies differentiate their insurance coverage for drivers who were logged in at the time of the Lyft or Uber accident vs. drivers who were not.
Drivers are not covered by the rideshare company while offline. In case an auto accident happens during this situation, the driver’s personal insurance coverage should pay for the damages.
If the driver is online and waiting for a ride request through the app, Uber and Lyft may be held liable for an accident where the rideshare driver is at fault. Additionally, the liability insurance coverage of Uber and Lyft dramatically increases once the drive is en route to pick-up a passenger or the passenger is already onboard.
In legal cases, a subpoena for the driver’s electronic records is typically filed to find out whether the driver is logged in or not in the rideshare app at the time of the accident. To know more about the legal options for an accident involving rideshare drivers, contact Jared Spingarn, P.A. He is an experienced accident and personal injury attorney in Hallandale Beach, Florida.
Uber and Lyft Insurance Coverage for Qualified Cases
Driver is logged-in, waiting for a ride request:
Uber
- Bodily injury: $50,000 coverage per person, $100,000 per accident
- Property Damage: $25,000 coverage per accident
Lyft
- Bodily injury: $50,000 coverage per person, $100,000 per accident
- Property Damage: $25,000 coverage per accident
Driver is logged-in, en route to pickup a passenger:
Uber
- Third-party liability insurance: $1 million coverage
- Uninsured/underinsured motorist bodily injury coverage
- Contingent comprehensive and collision coverage up to the actual cash value of car with $1,000 deductible
Lyft
- Third-party liability insurance: $1 million liability coverage
- Uninsured/underinsured motorist bodily injury and/or first-party coverage
- Contingent comprehensive and collision coverage up to the actual cash value of car with $2,500 deductible
Driver is logged-in, passenger is on-board:
Uber
• Liability coverage: $1 million
• Bodily injury coverage for uninsured or underinsured motorist
• Contingent comprehensive and collision coverage: up to actual cash value of car with $1,000 deductible
Lyft
• Liability coverage: $1 million
• Bodily injury coverage for uninsured or underinsured motorist and/or first-party coverage
• Contingent comprehensive and collision coverage: up to actual cash value of car with $2,500 deductible
Do Lyft and Uber provide insurance for passengers?
The answer is yes, but these companies are not always liable. Uber and Lyft have insurance coverage for drivers, passengers, and third-parties. However, for them to enforce this, the passenger must be able to prove that:
- He/she has an active booking and is en route to his/her booked destination when the accident happened.
- The Lyft or Uber driver is at fault during the accident.
Having to prove that the Lyft or Uber driver is the one at-fault during the car accident is typically the tricky part in this type of case. If the rideshare driver is not at fault, then, the accident victim should file a claim against the other driver’s insurance company, just as what would normally happen if the passenger is driving their own car. Contact Jared for a free legal consultation to get the best course of action if ever you are involved in this kind of situation.
What if the driver is offline but does not have a personal auto insurance policy?
As mentioned, if the accident happens when the rideshare driver is not logged-in, their personal insurance coverage shall cover the damages. But what if the rideshare driver does not have an insurance policy?
In such case, the liability can fall on the rideshare company involved – Uber or Lyft. It is mandatory for their independent contractors to have a personal auto insurance policy that covers them when logged out of the app. The state law of Florida mandates these drivers to carry a personal injury protection (PIP) with a coverage amount of at least $50,000 per person or $100,000 and a property damage liability coverage of at least $25,000. As a result of the failure to enforce and ensure this, the rideshare company can be compelled to assume liability towards the damages brought by their drivers during their personal time.
However, keep in mind that this may be a case to case basis. If you are involved in such situation, schedule a free consultation with Jared Spingarn – a reliable personal injury lawyer in Florida, to know your legal options.
Other FAQs on Accidents Involving Lyft or Uber Drivers
1. Who pays for non-economic damages such as pain and suffering after a Lyft or Uber accident?
In cases involving Uber and Lyft passengers seriously injured in crashes, the negligent party will be held liable for both economic and non-economic damages sustained by the car accident victims. If the accident was fatal, the immediate relatives of the deceased may seek damages in connection with the loss of life from the rideshare operator. If another driver causes the crash, the injured Uber or Lyft passenger could claim damages from that driver.
2. What is the liability for pedestrians and bicyclists?
What if you are a pedestrian or cyclist and were struck by an Uber or Lyft car? You can hold the driver, as well as the rideshare company, liable for damages. Who is most likely to be at fault will depend on the circumstances of each case. If the Uber or Lyft accident was caused by poor weather conditions, it would be difficult to prove that the driver or company was at fault. If, on the other hand, the accident was caused by the negligence of the driver, such as texting while driving, then you would be able to hold both the driver and company liable.
3. Do I need a lawyer if I am involved in an Uber or Lyft car accident?
Yes, an experienced lawyer from Jared’s Law Firm will be able to guide you through the process of filing a rideshare accident claim and ensure that you are fairly compensated for your injuries. They will also be able to deal with the insurance companies on your behalf and negotiate a fair settlement. If you are unable to reach an agreement with the insurance company, then your lawyer will be able to take your case to court.
If you have been involved in an accident with an Uber or Lyft driver, contact Jared Spingarn for a free consultation. He has extensive experience dealing with these types of cases and will be able to advise you on the best course of action.
Conclusion
There are many different scenarios that can play out when it comes to who pays for a crash done by an Uber or Lyft driver. The timing of the accident is at the core of this discussion. The liability of the insurance company will start to come at play if first, it is proven that the Uber or Lyft driver is actively logged-in to their app and is, therefore, on duty. If not, then the driver’s personal insurance will have to cover the damages done. However, if the driver does not have any insurance, then the liability can fall back on the rideshare company.
It is important to note that this is just a general guide and that each case is unique. If you have been involved in an accident with an Uber or Lyft driver, it is best to speak to our personal injury lawyers to discuss your legal options. Jared Spingarn can give you a free consultation so you will understand your legal options as soon as possible.
>> If you’re involved in a rideshare accident in Florida, don’t hesitate to reach out to Jared Spingarn, Accident Attorney at 1-954-781-2316 for a Free Case Review or drop a message on their Contact Us page.
