The rise of rideshare services like Uber and Lyft has enabled more people to easily access cabs in a way that conventional taxi service had fallen short. For example, the implementation of GPS-empowered mobile apps by rideshare companies helps ensure that drivers can quickly find a passenger who has requested their cab.
However, despite the efficiency of rideshare services, cabs can still be involved in accidents like normal passenger vehicles. Passengers and drivers can benefit from understanding the unique insurance concerns that may apply in different rideshare accident scenarios.
Layers of insurance
Rideshare drivers are independent contractors and not employees of the rideshare company they work under. As such, both drivers and the rideshare company they work under may be liable for an accident depending on the circumstances of a particular incident. For this reason, accidents involving Uber or Lyft drivers can be complex due to multiple insurance policies that might come into play.
The drivers are required to have personal auto insurance, which comes into play if they get involved in an accident when they’re not on the rideshare app. It’s crucial to remember that the extent of this coverage may vary from driver to driver.
Rideshare companies also provide insurance policies that may apply if a driver gets involved in an accident when they’re engaged with the rideshare app. As soon as the driver logs into the app, this insurance policy kicks in and continues to apply when transporting a passenger.
Stages of a rideshare ride
Understanding the stages of a rideshare trip can help drivers and passengers understand which insurance layer will apply should an accident happen:
- When the driver is in the cab but they haven’t logged into the rideshare app
- When the driver is logged in to the app but hasn’t yet accepted a ride request
- When the driver accepts a request and is on their way to pick up a passenger
- When the passenger has been picked up and is being transported to their destination
The first stage, when the driver has not yet logged into the rideshare app, is the only time a ride-sharing company isn’t liable for a ride-sharing accident. Since rideshare drivers are independent contractors, the rideshare app is what affiliates them to the rideshare company they work under.
Since the layers of insurance coverage in rideshare accidents can be confusing, individuals who get involved in rideshare accidents can benefit from appropriate legal guidance. A trusted legal practitioner can help ensure that a survivor knows the proper channels to pursue compensation.