One of the most disruptive and perhaps the most famous transport inventions in recent years has been ride-sharing services like Lyft and Uber. This service offers users unmatched affordability and convenience compared to public transport or traditional taxis. However, despite the unmatched convenience and flexibility when using these services, it is important to note that just like any other motorist, rideshare vehicles and drivers can get into accidents. If you are involved in such an accident in California and sustain injuries, you may be left wondering who is liable for covering your medical expenses and other damages. This article will delve into who is to be held liable in case you are involved in an Uber or Lyft accident and insurance coverage that will apply in different situations.
Uber and Lyft Insurance Coverage
Before exploring different liability scenarios it is important to understand what these rideshare insurance coverages entail in California. Uber and Lyft offer different insurance coverages depending on the point that the service is at. Here is a detailed look at these coverages.
When the driver is logged into the app and is waiting to be paired with a customer Lyft and Uber offer lower liability limits. In this case both Uber and Lyft rideshare insurance provide $50,000 of bodily injury per person involved in the accident. Additionally the companies provide $100,000 of bodily injury total per accident and $30,000 of property damage per accident. Lyft offers $200,000 in excess liability coverage.
Once the driver has been paired with a passenger and is enroute to pick the passenger or has picked the passenger and is driving to destination the 1 million dollar insurance policy coverage per incident applies. This coverage will apply to the driver of the vehicle and any other passengers in the vehicle or anybody else injured in the accident including pedestrians and other motorists or vehicles.
For Uber the 1 Million dollar insurance policy will cover the damages if the Uber driver was at fault for the accident. This policy may also be applicable if the Uber driver was not at fault for the accident, but the other driver who caused the accident is uninsured or underinsured or if the policy that they are subscribed to does not have enough insurance to cover all the medical expenses and damages incurred in the accident.
Other than the insurance coverage provided by the rideshare company, drivers are also required to obtain the minimum liability coverage required by the state in which they operate. Additionally, drivers are required to keep abreast of the company’s insurance coverage and understand the limits of liability. The auto policy provided by Uber does not cover drivers if they were not actively using the app during the ride or if they were using the app but not actively working.
Rideshare Liability Policy When the Driver is at Fault
For Rideshare services like Lyft and Uber, the liability policy will cover you in case the accident results in injuries and damages, and the driver is at fault. Here are some cases where the driver may be at fault for the accident:
Distracted driving: When the driver is distracted during the trip, such as when using a phone or not focusing on other external activities rather than focusing on the road.
Reckless driving: This entails activities such as overspeeding, disobeying traffic rules, or failing to obey traffic signals.
Driving under the influence: When the driver is driving under the influence of drugs or alcohol or is actively using these substances during the trip.
Fatigued driving: for a successful trip the driver must have the physical and mental capacity to focus on the road. This may not be the case with fatigued drivers which may hence lead to accidents.
The liability policy, in this case, will cover the medical expenses, pain and suffering, lost wages, as well as other damages. The claims should be filed against the rideshare company’s insurance rather than the driver’s personal insurance.
Despite the seemingly straightforward process of filing claims, it is important to note that there may be some complications in the course of filing those claims. For example, your damages may exceed the $1 million ceiling set by the rideshare company. In other cases, there may be some technicalities that can prevent you from being rightfully compensated. As such, it is important to have an attorney who is well-versed in the legal proceedings of such cases and can help you with any legal or technical mishaps you may encounter.
What Happens When the Other Driver is at Fault?
In case you are involved in an accident when in a rideshare vehicle and the other driver is at fault, then their personal insurance will be liable for covering your injuries and damages. The extent to which the auto liability insurance will cover the damages will depend on the policy limits of the said plan. In cases where the policy limits are too low, all your medical expenses and other damages may not be covered.
If this is the case and you are, then you can file a claim for the uninsured or underinsured policy coverage. This policy will cover damages of up to $1 million. The uninsured or underinsured policy will also cover cases where the driver at fault cannot be identified or cannot be found, for example, in cases of hit and run.
Cases Not Covered by Rideshare Companies
While most common accidents will be covered by the rideshare company’s insurance, there are some cases where such companies may fail to provide coverage. One such case is if the accident was a result of the driver’s misconduct or intentional acts. This may include actions such as assault or intentional harassment of the passenger.
If an accident results from such actions, the best cause of action is to file a civil lawsuit against the driver. However, in some instances, you can also file a case against the rideshare company. This will only happen if you can prove that the company was negligent in hiring, supervising, and retaining the driver.
Can You Sue the Rideshare Company Directly for Damages following an Accident?
Suing a rideshare company for damages may be difficult since the drivers who operate or work using these apps are considered independent contractors by the company and not employees of the organization. Under the legal doctrine of Respondent Superior, which is Latin for “let the master answer”, an employer may be held liable for the actions of their employees. However, since the drivers are independent contractors, the vicarious liability will not apply to the company. Despite this, the company can sometimes face direct liability if it is proven to be guilty of any of the following.
Negligent Hiring or Retention: The rideshare company may be liable if it fails to do rigorous checks and screening of its drivers or retains drivers who have previously known safety issues. For example, if the company hires an unqualified driver or hires a driver with a history of reckless driving or DUIs and the said driver causes an accident, then the rideshare company can be directly liable.
Defective Rideshare App: If the rideshare app causes an accident then the company can be directly liable. This may be in cases where the app offers incorrect navigation that can lead to an accident. In such cases then you can sue the rideshare company directly.
Improper Insurance: Rideshare companies are required to maintain certain levels of insurance coverage for independent contractors such as drivers. In cases where the rideshare company has failed to maintain the prerequisite levels of insurance, then it may be directly liable, and you can sue it for damages in an accident.
Fraud or Misrepresentation: If the rideshare company is guilty of engaging in fraud or misrepresentation of either its services or its driver’s skills and qualifications, and this misrepresentation leads to an accident, then the company can be held directly liable.
Conclusion
It is important to note that these cases are rare, and in most situations, an attorney will file a claim against the rideshare company’s insurance policy or a claim against the at-fault driver’s personal insurance policy. There is no one-size-fits-all approach when it comes to rideshare accidents. Each case will be unique, with different aspects, and the legal principles that are applied in one case may not apply to the other. Navigating the legal system alone may be highly challenging, not to mention time-consuming. It’s advisable to work with a qualified accident attorney who will help you navigate this complex legal system and improve your chances of getting compensation for your injuries and any other damages.
Contact A qualified Attorney
Accidents are always tragic and draining. But you don’t have to bear the burden of the associated costs of treatment, grief, pain, and suffering alone. Since rideshare accidents involve multiple parties, they have complex insurance policies, which may sometimes involve multiple parties. While personally seeking justice in such cases may be an option, having an experienced personal injury attorney in California may increase your chances of getting the compensation you deserve and getting your life back on track.
