Luke Dow Law Firm

How Insurance Works in Uber, Lyft, and Ridesharing Accidents

By Luke Dow on February 28, 2018

Phone app ridesharing driver behind the wheelIf you've been drinking or are not fit to operate a vehicle, apps like Uber or Lyft are great solutions. Ridesharing and car service apps allow you to hail a driver without have to hail a cab or call an expensive car service. While many Uber and Lyft drivers are safe, accidents can happen regardless. Even if your driver is cautious, other motorists may cause ridesharing accidents. Poor weather and bad road conditions can also increase the risk of a collision. When accidents happen, insurance will help. Of course, legal issues may arise.

Since many people use ridesharing services during major festivals like SXSW, our Austin, TX law firm is familiar with insurance disputes over these kinds of accidents. Let’s cover some of the basics and go over the ways we can help you.

Whose Insurance Covers Injuries in an Accident?

It can vary. In some cases the ridesharing company’s insurance covers the accident, and in other the driver’s personal insurance covers the accident. Let’s consider conditions for passengers and drivers:

  • Ridesharing Passengers - The ridesharing company’s insurance will cover injuries sustained as long as the company’s app was open at the time of the accident.
  • Ridesharing Drivers - While policies may vary, drivers for ridesharing companies will be covered by their employer’s insurance from the time they accept a fare through the app to the time the ride ends. When driver mode is on but there is no passenger on a ride, the company coverage is lower; when driver mode is off, the driver is covered by their own insurance.

How Much Does a Rideshare Company’s Insurance Cover?

The type of insurance that kicks in is highly important. The insurance policies from ridesharing companies such as Uber and Lyft will cover up to $1 million per accident.

Issues for People Using Uber/Lyft for Rides

Proving that the ridesharing app was on at the time of the collision can sometimes be tricky. Disputes may arise with insurance companies regarding the nature of the collision since a ridesharing company was involved. Passengers should have rights in these matters since they were not behind the wheel and were patronizing a service they believed to be safe.

Issues for Uber/Lyft Drivers in a Collision

If you drive for Uber, Lyft, or another comparable service, you may get into disputes with your company about how much insurance coverage should be applied to an accident. Similarly, you might be questioned regarding the nature of the collision even if it was caused by the negligence of another motorist.

How Attorneys Can Help with Your Uber/Lyft Case

Whether you are a passenger involved in a collision or a driver who was involved in an accident, accident lawyers will help you put together a strong case and argue for the legitimacy of your insurance claim. These disputes often require the knowledge and impartiality of a legal expert. Our counsel can help cut through the confusion and allow you to receive the compensation you are due given the nature of the ridesharing accident.

Contact Our Team of Attorneys

For more information about your legal rights and options in a ridesharing collision, be sure to contact the Luke Dow Law Firm today. Our legal team is here to help you in your time of legal need.

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