Uber, Lyft, and other ride-sharing companies provide a convenient and inexpensive means of transportation for people in urban areas all over the U.S. Unfortunately, ride-sharing-company drivers occasionally get into accidents that result in injuries to their passengers, other drivers, or pedestrians. Understanding how ride-sharing companies insure their drivers is important to recovering damages you may be entitled to receive.
Ride-share services typically have insurance policies for their drivers that apply when the drivers have passengers. For example, Uber uses a $1 million liability/$1 million uninsured/underinsured coverage policy for its drivers when they have passengers. This means that if an Uber driver has a passenger and gets into a wreck or strikes a pedestrian, the Uber insurance will pay the claim.
When ride-sharing service drivers don’t have a passenger, they are often covered only by their personal auto insurance. So, if they get into an accident or hit a pedestrian going to or from a fare, the Uber policy is not in effect—only their own personal policy is.
However, personal policies may exclude coverage of work activities, such as driving for a ride-sharing company. Because ride-sharing company drivers are third-party contractors, it may limit the ability of victims to recover directly from the ride-sharing company.
The bottom line is that if you get into a traffic accident as a passenger with an Uber, Lyft, or another ride-sharing company driver, you need to talk to an experienced accident lawyer, as getting compensation can be complicated.
Since 1996, the Law Offices of Marc J. Shuman & Associates has been helping auto accident victims, all injured victims and their families to navigate the complex legal process. As experienced personal injury, worker’s compensation, auto accident, compensated and wrongful death attorneys, we can help you evaluate the facts, assess your options, navigate the legal challenges, and advocate on your behalf.