Rideshare Accident Claims

How the Insurance Works in an Accident

Drivers for rideshare services use their own vehicles and are not employees of the company, so the insurance situation is far different from how taxis would work. The laws are often incredibly complex and depend on whether the app was on at the time, the driver was waiting for a request, or whether the driver had a passenger in the vehicle with them. This information should be contained in the police report, but the police may not have written it down. In that case, the victim of the accident will need to work with a lawyer to find out which situation happened and what it means for them.

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If the App is Off

If the app is off, the rideshare driver is not working. This means their standard car insurance will be used instead of rideshare insurance. The app should be off if the driver is not looking to give a passenger a ride and does not have a paying passenger in their vehicle. If they have a paying passenger in the vehicle and the app is off, a lawyer may be needed to determine which insurance company would apply for the situation. Since some drivers will work for multiple rideshare companies, it is important to check that all apps are turned off if an accident does happen.

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If the Driver is Waiting for a Request

If the app is turned on, the driver is considered working. If they do not have a passenger at the time, it’s considered idling as they are waiting for a passenger to need them. During this time, they could be sitting and waiting or driving around to look for a passenger. In these situations, insurance gets a little more complicated. The rideshare insurance doesn’t typically kick in because there is no passenger. Claims will need to be filed with the driver’s personal insurance.

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The issue is, personal insurance will not cover drivers who are in an accident when the vehicle is being used for a commercial purpose, which would include ridesharing. If the insurance company denies the claim because the vehicle was in waiting for a passenger and the driver was working, the rideshare insurance should cover the accident. If the personal insurance does cover the accident, but the driver doesn’t have enough coverage for all accident-related expenses, the rideshare insurance may cover any remaining funds.

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If the Driver Has a Passenger

If the driver has accepted a passenger and is on the way to pick them up or is driving them to their destination, the rideshare insurance will be used for an accident. This covers drivers who do not have anyone in the vehicle, as long as they have accepted a ride and are on the way to pick up the passenger. Rideshare services are required to carry a significant amount of coverage for any accidents, and that can come into play for any passengers who are injured while riding in a rideshare vehicle or anyone the rideshare vehicle hits.

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Settlement Offers for Uber or Lyft Accidents

Settlements for Uber accidents will vary based on the amount of damage to vehicles as well as the injuries sustained in the accident. In general, settlements will include economic and non-economic damages. Both are added together to determine the settlement needed to financially recover from the accident. This will likely not be the first settlement offered by the insurance company, so it is important to work with a lawyer to negotiate a higher settlement.

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Economic Damages

Economic damages include medical compensation, costs for surgery or specialized care, medical devices that may be needed, rehabilitation for recovery, healthcare, and more. They can also include vehicle repair or replacement costs, lost wages, and other types of expenses from the accident.

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Non-Economic Damages

Non-economic damages are those that don’t have a specific dollar amount attached. These can include funds for pain and suffering after severe injuries, loss of companionship if a loved one is killed, and more. It is harder to determine how much anyone should receive for these after an accident, which is why hiring a lawyer is crucial.

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How Do Rideshare Car Accidents Happen?

Uber car accidents can happen for numerous different reasons, just like any other accident. Some of the most common ways for a rideshare accident to occur include the following.

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Distracted Driving

Drivers who are distracted, even if it’s for a second, can easily end up causing an accident if they swerve out of their lane or fail to stop before hitting another driver.

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Fatigued Driving

Rideshare drivers who do not get proper rest before working or work long hours may end up tired. This can cause them to not respond as quickly to anything happening on the road, leading to an accident.

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Intoxicated Driving

While rideshare drivers are working, they are not employees of a company and could take more risks than an employee would, including drinking and driving. This could lead to a severe accident.

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Speeding

Speeding to get to a passenger quickly or to get a passenger to their destination can lead to an accident. Severe injuries can result from accidents where speeding is a factor.

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Running Red Lights

If the rideshare driver runs a red light or a stop sign, or fails to follow any other traffic signals, they could end up causing an accident. Depending on the situation, this can lead to severe injuries for the victim.

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Poor Vision or Weather

Any time there is poor visibility, or the weather is bad, the potential for an accident increases. Severe weather can further increase the potential for an accident.

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Types of Injuries Common in Uber Car Accidents

The type and severity of injuries will depend on how the accident occurred and how severe the victim was injured. Common injuries after car accidents include abrasions, broken bones, whiplash, strains and sprains, bruises, traumatic brain injury, spinal cord damage, internal bleeding, and organ damage. Even if someone doesn’t feel injured, it’s a good idea to seek medical treatment after an accident to discover any potentially hidden injuries. These can be severe but may not be noticed immediately after the accident until the person’s adrenaline wears off and they start to feel the pain.

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Being in an Uber accident can be more complicated than the standard accident due to the potential for multiple insurance companies to be involved. If you are ever in an accident that involves a rideshare driver, whether you were another driver on the road, a pedestrian, or a passenger, it’s important to get help fast. Before accepting any settlement offer from the insurance company, speak with a lawyer about your case. Our team is ready to help you negotiate for a higher settlement, so you financially recover from the accident. Call us now to schedule your consultation.

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FAQs About Rideshare Car Accidents

Accidents involving rideshare drivers can be more complicated than the standard accident, so it’s no surprise that many people will have a lot of questions. If you’ve been injured in a car accident where a rideshare driver was at fault, read through the following frequently asked questions to learn more about your situation and what to expect. Then, talk to one of our lawyers to get specific help with your case.

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How Common are Rideshare Accidents?

Rideshare accidents are common, and the rate of accidents has increased around two to three percent since 2011. Rideshare services do mean more drivers on the road, as people will take a rideshare service instead of public transportation. This naturally leads to the potential for an increase in accidents.

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Does the Situation Change if the Accident is With an Uber Eats Driver?

If the driver that caused the accident is an Uber Eats driver, and they were picking up or delivering food at the time of the accident, the same rules apply as if they were waiting for a passenger. Typically, personal insurance will be used first, then Uber insurance. This can get complicated, however, so hiring a lawyer for help is important.

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What’s the Difference between Ridesharing and Taxis?

For insurance purposes, ridesharing and taxis are very different. With a taxi, the driver is an employee and is driving a company vehicle, so the company insurance will always be involved. With a ridesharing service, the driver is not an employee and is driving their own vehicle, so depending on when the accident happened, the involved insurance company could be personal vehicle insurance or commercial.

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Can You Sue Uber for an Accident?

Typically, a claim is filed, and then negotiations with the insurance company will begin. If it is not possible to agree to a settlement amount, then it may be necessary to sue for compensation and take the case to court. The case will then be decided by a judge or jury.

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Is a Lawyer Needed to Receive Compensation?

No, it is possible to receive compensation for an accident without a lawyer. However, the filing process can be complicated when dealing with a rideshare service, and most of the time, the insurance companies involved will try to minimize any payout. Working with a lawyer makes the entire process easier and can help to increase any potential payout.

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Does the Uber or Lyft Driver Need to Carry Special Insurance?

The Uber driver will have commercial insurance through Uber in case an accident happens while the driver has a passenger. The driver will need to have a personal insurance policy in place for times when they’re not picking up or dropping off a passenger.

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How Long Do I Have to File a Claim?

In New Jersey, the statute of limitations for a car accident claim is usually two years. After this, a claim cannot be started. It is important to start working with a lawyer as soon as possible after the accident, however, as it will take time to do everything that needs to be done, like gather evidence.

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How Do I Tell Who is at Fault?

It can be hard to determine who is at fault for an accident. This is a situation where having a lawyer can be crucial, as they can review evidence to help determine who caused the accident and how it occurred.

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Do I Need to Go to Court to Receive Compensation?

No, it’s not always necessary to go to court to receive compensation. Most cases end with a settlement and do not end up going to trial. If a settlement cannot be reached, the case will then go to trial.

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Can I Be Banned from the App if I File a Claim?

Rideshare services want to make sure their passengers are safe whenever they travel. For this reason, they do encourage passengers to file a claim if they’re involved in an accident. The passenger will not be banned just for filing a claim.

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Who Can Request Compensation from an Accident with a Rideshare Driver at Fault?

Anyone involved in an accident with a rideshare driver can request compensation. Depending on the type of accident and how it occurred, potential victims can include other drivers on the road, pedestrians, bicyclists, or passengers of the rideshare service.

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How Much Will I Receive for the Accident?

The amount of money that can be received in a settlement will depend on the severity of the accident as well as the extent of any injuries. Severe or permanent injuries will lead to a higher settlement since the amount of medical care needed to fully recover is much higher.

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How Long Will It Take to Receive a Settlement?

It does take time to receive compensation after any accident. When it is more complex, such as when it involves a rideshare service, it can take a little bit longer. First, a claim will need to be filed, and then evidence will need to be gathered to prove the case. Negotiations will typically follow that before a settlement can be reached. It is only at this point that you’ll receive the settlement.

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Should I Accept the First Settlement Offer?

No, it’s typically not a good idea to accept the first settlement offer. Usually, this is an amount much lower than what the case is worth. Talk to a lawyer before accepting any settlement.

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Accidents with rideshare services do happen, and they can be far more complicated to handle than they seem at first. That’s why it’s always a good idea to work with a lawyer. If you have been in an accident and have questions about what to do next or what you should expect, call our team now. One of our lawyers can work with you to file a claim and help you receive as much compensation as possible from the accident.