Who’s Liable if You’re Injured in a Ridesharing Accident?

As life continues to go back to normal this year, in-office jobs have resumed, and cities across Tennessee have begun to bustle once again. With this increased activity comes an increased need for transportation. As a result many people are starting to return to the use of ridesharing services, such as Lyft or Uber, in order to get where they need to go. But what happens if you’re injured in an accident while on your way? Who is responsible for your injuries?

What is a Ridesharing Service?

If you are unfamiliar with ridesharing services, they are relatively newer methods of transportation. You can think of them as a type of personal taxi service in which your driver will pick you up and drop you off where you request. The only difference between ridesharing services and taxi services is that you “call” for your ridesharing vehicle through an app on your phone and you pay according to a different price structure. Once on the app you can no schedule a driver at a certain time (or as soon as possible) and can choose from different types of vehicles depending upon the number of passengers and the purpose of your transportation. For instance, those who have a longer trip may prefer to have a larger or nicer vehicle. For these reasons ridesharing services have now outpaced traditional taxi services.

Is the Driver or the Company Responsible for an Accident?

All ridesharing companies require their drivers to carry liability insurance. This is because they are considered to be contractors of the company rather than employees. Unfortunately though, most auto insurance companies will not cover an accident if their policyholder was driving for a ridesharing company at the time of the accident. That’s why ridesharing companies like Uber and Lyft have liability insurance for their drivers should they be involved in an accident.

When your ridesharing vehicle is in an accident while you are a passenger, and you suffer injuries, there are two different possibilities: either your driver caused the accident or a third-party is to blame.

If a Third-Party is Responsible

Things are a bit simpler if a third-party is responsible for the accident. In such a scenario, you can bring a claim against the third-party, such as another driver. However, you will only be able to receive compensation if the at-fault driver has auto insurance. If he or she doesn’t have proper coverage, you can always file a personal injury lawsuit against him or her. But again, even if you win your suit, what you recover is dependent upon the assets that the third-party has. If he or she lacks the assets to pay what you have been awarded, you are still left to fend for yourself.

If Your Ridesharing Driver is Responsible

If your ridesharing driver is responsible for causing the accident, things are a little bit more complicated. You can bring a lawsuit against your driver but since most ridesharing drivers don’t have commercial insurance and their personal policies will not cover accidents that occur while they are engaged in driving for a ridesharing company, it’s unlikely that you will be able to get anything from their insurance company. But luckily, you can also bring a lawsuit against the ridesharing company. Under the law ridesharing companies must carry $1 million in insurance per accident for personal injury and property damage due to the negligence of their drivers.

If your ridesharing driver’s insurance policy will not cover ridesharing accidents or will not fully compensate you for your injuries, the company can apply its third-party liability insurance coverage.

What Can You Recover in Damages?

When you have been injured in a ridesharing accident, you can receive monetary compensation for the following damages:

● Past and future medical expenses

● Lost wages

● Loss of future income/earning power

● Pain and suffering

If you have been injured in a ridesharing accident while a passenger, it’s very possible that you will receive a phone call from an insurance agent working on behalf of the ridesharing company. Someone will often reach out with the purpose of obtaining a statement from you or getting you to agree to a settlement. While the idea of immediate compensation may be appealing, it often fails to cover much less than you would if you had worked with a qualified personal injury attorney. Be sure not to make any statements, answer any questions, or sign any documents before speaking with an attorney.

Robert BatesRobert is a Kingsport trial lawyer who handles car, truck and motorcycle wreck cases across the Tri-Cities. Every client gets his cell number.