Popular rideshare services like Lyft and Uber have become a normal mode of transportation for many people in the US. While these rideshare companies offer a convenient way to get from place to place, there are a few insurance and liability issues to consider, especially if you want to work for a company like Uber or Lyft. If there is a crash that involves your rideshare vehicle, here are a few things you should know.
The Safety of Rideshares
Rideshares are easy to access in most locations and often cost less than a conventional taxi service. However, there are still some concerns about how rideshares operate and how well they evaluate their drivers.
There have been several instances where passengers were assaulted or even killed after getting into an automobile that they thought was a rideshare vehicle. The driver was pretending to be part of a rideshare company, which has led rideshare organizations to implement more security measures to keep riders safe.
Evidence also suggests that rideshare services may make the roads less safe. In the years before Uber and Lyft, car accidents that resulted in death were at record lows. Once rideshares were introduced, there was an increase of 2-3% of fatal accidents according to the research team at the John Barrios of the University of Chicago.
Who Is Liable If You’re In a Rideshare Car Accident?
Whether you’re the driver or passenger of a vehicle that crashes with a rideshare vehicle, the liability rests with the party who is responsible for the accident. To prove liability, three elements must be proven:
- the individual had a duty of reasonable care
- the individual breached their duty of care
- you were injured and/or sustained damages because of the other person’s breach of care.
The process for determining fault in a rideshare accident is the same as determining liability in a normal car accident. The element that makes rideshare accidents slightly different is the way that insurance covers the injured party when the person who suffered damages or injury seeks to be compensated by the liable party.
Do Lyft and Uber Drivers Have to Carry Insurance?
Most drivers who work for a rideshare company have a personal insurance policy. This means that if they get in an accident and are at fault, you can file a claim with their insurance company to get reimbursement for damages and medical bills.
The issue with this is that most personal car insurance policies have a business-use exclusion, so the coverage won’t pay for injury or damages if the driver was using their vehicle for business reasons. As soon as a rideshare driver picks up a passenger, the driver does not have liability or collision insurance under their personal insurance policy.
How to Be Reiumbrused If You’re In a Rideshare Accident
Uber and Lyft provide a liability coverage policy worth $1 million for its drivers. While this may seem like a large amount, the coverage amount depends on the “period” the driver falls into. The periods are as follows:
- Period 0 is when the driver has not logged into the Lyft or Uber app, and no coverage is offered through the company, but the personal insurance policy of the driver may apply.
- Period 1 is when the driver has logged into the app but has not yet accepted a ride request. During this period, there is liability coverage for accidents that are the driver’s fault for up to $50,000 per person and $100,000 total liability for each accident.
- Period 2 is when the driver has accepted a trip from a customer and is en route to pick up the passenger. During this period, liability coverage is $1 million.
- Period 3 is when the passenger is in the rideshare vehicle. The $1 million liability coverage applies, in addition to limited coverage for any damage to the driver’s vehicle and coverage for uninsured motorists.
Contact a qualified attorney to file a physical injuries claim in South Carolina if a ridesharing and taxicab accident happens. A lawyer can review the details of your case and help you get the settlement you deserve after your accident.
Author’s Bio Sarah Douglass
Sarah Douglass has been writing all her life. What started as a passion soon became her life goal. At such a young age, she has already faced and overcame many obstacles. The instinct she developed through her life experience is coupled with an in-depth knowledge of the legal field. Sarah sees writing as a means to connect to others and help them overcome hard times.