Rideshare services like Uber and Lyft have skyrocketed — you can grab a quick ride or earn money as an independent contractor. But just how protected are you if there's a crash? Here are the concerns a car accident lawyer hears most often.
The Questions Riders Ask Most
- Who is responsible if I'm injured in an accident during a rideshare trip?
- Who is accountable if I'm hit by a rideshare driver while I'm a pedestrian?
The Three-Tier Insurance Structure
Rideshare companies use a three-part insurance structure to cover drivers and passengers, and which tier applies depends on what the driver was doing at the moment of the crash:
- App offWhen the driver isn't available to pick up passengers, only their own personal auto insurance applies.
- App on, no passenger yetWhen the driver is available but hasn't accepted a trip, their personal insurance applies, plus additional contingent liability coverage.
- On an active tripWhen the driver is en route to or carrying a passenger, a larger liability policy applies — plus uninsured/underinsured motorist coverage in case the other driver is un- or under-insured.
Where the Coverage Gaps Are
Because rideshare companies classify their drivers as independent contractors rather than employees, there's "wiggle room" on liability. Situations where a claim can get complicated include:
- If the company decides your damages must first go through the driver's or passenger's own personal insurance, you may recover far less than the rideshare policy would have covered.
- If a rideshare driver strikes a pedestrian, the pedestrian can pursue a claim — but the driver generally must have had the app on and been "on trip" for the company's larger coverage to apply, which can leave a gap for pain and suffering depending on the injuries.
When it comes to a rideshare injury or accident, a company's stance on what it will actually do for the victim can be frustratingly vague. You need someone who knows your state's laws and how to press a fair claim on your behalf.