Rideshare culture is perhaps one of the biggest transportation innovations of recent years. From seemingly nowhere, companies like Uber and Lyft have arisen, transforming how we get from place to place forever. But with these innovations come practical questions. Among them, how do you handle getting in an accident in a rideshare? Dealing with old school cabs left little question of who would handle liability in an accident. But when the person taking you to your destination is using their personal car, things can be less clear. If you’ve made rideshares a key part of your transportation plan, keep reading to learn what to do if your Uber or Lyft ride hits a snag.
How Rideshare Liability Works
Rideshares work by allowing passengers to hitch a ride in a private vehicle for a fee, vetted by companies like Uber or Lyft. These arrangements are popular because they are more flexible than most cab companies. Both companies vouch for their driver selection process, but accidents can and do happen. If you’re facing injuries following involvement in a rideshare accident, there are two main liability options:
- Financial responsibility covered by the at-fault driver’s insurance
- Financial responsibility covered by Lyft’s car insurance coverage
When the Driver’s Insurance Applies
If your Uber or Lyft driver is in an accident and they are at fault, expect their private insurance to cover damage. While that may sound like a relief, there’s one loophole: The driver must have either a commercial insurance policy or a regular insurance policy that covers them for accidents that happen while they’re using the car for rideshare purposes.
How Lyft and Uber Cover Damages
Because the rideshare phenomenon is so new, legislation regulating how they must handle accidents is a moving target. In general, Uber offers coverage for its passengers, but this may come only after the Uber driver’s insurance has been exhausted or refuses to cover the incident. Lyft also offers third party liability insurance coverage, paying up to $1 million toward personal injuries and property damage. But like Uber, this may only apply after the driver’s insurance has been ruled out. That could leave you playing the waiting game while bills pile up.
Rideshares haved offered one of the most exciting, convenient transportation options in years. But they aren’t without their complications. If you’ve been injured while riding with Uber or Lyft, and are struggling to get your bills paid, contact an Uber accident lawyer in Salt Lake City, UT to learn all your options.
Thanks to Rasmussen & Miner for their insight into personal injury claims and Uber or Lyft accident injuries.