A person injured in a rideshare accident can recover up to $1 million in damages. That can be through the rideshare company’s liability coverage or uninsured/underinsured insurance coverage. Although rideshare apps like Lyft and Uber have made life easier for millions of people, their drivers can be involved in car accidents just like other drivers. Therefore, users need to know their rights.
When Does The $1 Million Liability Coverage Apply?
Uber and Lyft provide liability coverage for up to $1 million when an injured party is involved in an accident caused by a ridesharing driver who has the rideshare app on and is providing a trip. The coverage is secondary to the at-fault rideshare driver’s car insurance coverage.
Uber and Lyft usually require drivers to have their own insurance coverage. The drivers may have a personal car or commercial insurance policies that do not sufficiently cover the injuries of accident victims. Additionally, personal car insurance policies can have a business use exception, which makes them not cover injuries and damages that happen when insured parties are acting as for-profit drivers.
The liability coverage carried by Uber and Lyft kicks in after the driver’s insurance is exhausted. It pays for property damage and injuries to the accident victims other than the rideshare driver.
When Does The $1 Million Uninsured Or Underinsured Coverage Apply?
Uber and Lyft carry a $1 million uninsured/underinsured insurance coverage for situations where a passenger is involved in a rideshare accident, but the ridesharing driver is not at fault. The coverage can protect a rideshare passenger and driver in a hit-and-run accident or in a crash where another driver is at fault.
When someone else rather than the rideshare driver is at fault for the accident, the responsible driver’s car insurance policy comes into play. A passenger can recover from the driver through a personal injury lawsuit or third-party claim against the driver’s insurance carrier. If this means of recovery cannot fully compensate the accident victim for his or her losses, then the ridesharing company’s uninsured/underinsured coverage can come into effect.
The coverage provides up to $1 million per accident in coverage. It only applies if the driver responsible for the accident is unknown, has car insurance that cannot sufficiently pay for a victim’s injuries, or does not have any car insurance. It is also only applicable from when a rideshare driver picks up a passenger to when he or she drops off the passenger.
The issue of someone else rather than the rideshare accident being at fault for the accident is further complicated in no-fault insurance states. Passengers are required to seek compensation from the policy covering the car they were traveling in, regardless of who was at fault for the accident. Therefore, a rideshare passenger would have to make a claim against the rideshare company’s policies.
Determining The Worth Of A Rideshare Accident
Besides the driver status when the car crash occurred, the severity of the accident and costs incurred determine how much of the $1 million maximum a victim can receive. As a result, it is vital for victims to keep all records and receipts related to their accident. When they are all added up, they can prove how extensive a person’s injuries were, helping increase the compensation.
Rideshare accidents result in economic damages as well as non-economic damages, such as pain and suffering. Accident victims, in conjunction with personal injury lawyers, can determine their economic and non-economic losses to ensure they get the right amount of compensation to which they are entitled.
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