When Rideshare Services Are Liable for Compensating Injury Victims

Rideshare services like Uber and Lyft have continued to become more and more popular over the years. When I first started college, Uber didn’t even exist. Now, as I prepare for my final year of law school, my friends and I rely heavily on Lyft and Uber to get around campus and the city. 

Well maybe it’s just because I spent the summer interning at a personal injury law firm, but I see and think about different types of accidents everywhere I go these days, and it got me to start thinking about whether Uber, Lyft, and other rideshare companies compensate injury victims who are involved in a collision with an affiliated driver. You can learn more about how injury settlements work in rideshare accident claims by reading on.

The Million Dollar Policy

Rideshare services including Uber and Lyft each have their own auto insurance policy that should come into effect the moment their driver’s enter driver mode. The insurance company will then pay out on claims that happen in the following circumstances:

  • When the driver is in driver mode
  • When the driver is on the way to pick up a passenger
  • While a passenger is being transported
  • When a driver has dropped off a passenger and is awaiting another one

Unfortunately, I discovered that Uber does not extend this protection to cover their driver, but only others who suffer injuries in the aforementioned situations. 

If the rideshare service’s insurance provider refuses to negotiate or pay out on your claim, or if they are not obligated to pay out on the claim, then you will need to seek alternate legal remedy.

What Happens When the Insurer Doesn’t Pay?

Filing a rideshare accident lawsuit will be necessary in situations where Uber’s or Lyft’s auto insurance does not pay, and when their insurance isn’t enough to cover your losses.

First, let’s take a look at what happens when the rideshare service doesn’t cover the cost. In these scenarios, you’ll likely need to file a claim with the affiliated driver’s auto insurer, as they will have been required to purchase their own policy specifically for situations like these. 

Even if you can get the insurer to pay, they only cover basic economic losses and have no compensation available for non-economic damages. When this happens, it is essential to file a personal injury claim against the at-fault party so the injury victim can secure an injury settlement that meets their needs.