Who Pays in a Rideshare Accident?

Rideshare driver accepting a ride on his phone.

Rideshare services, such as Uber and Lyft, have skyrocketed in popularity over the past few years. The services, referred to as transportation network companies (TNCs), connect passengers with independent drivers. The rapid growth of these companies and their customer bases has also led to an increase of rideshare accidents. Like in any other type of motor vehicle accident, if you have been injured in a rideshare accident, you may be entitled to compensation. This is true if you were a driver, passenger, or pedestrian in the crash.

The Liability and Who Pays in a Rideshare Accident

There are several scenarios in a rideshare accident. Like all accident cases, determining liability and, therefore, who will pay for damages resulting from the accident, is a fact-specific analysis. Finding out who will carry insurance liability for the accident will depend on whether you were the rideshare driver or passenger, whether you were the driver or passenger in another vehicle, or whether you were a pedestrian. It will also depend on the cause of your accident.  Whoever caused the accident will be assigned fault. Usually, in crashes, the insurance company for the at-fault party will be responsible for paying out any damage claims stemming from the accident. In a rideshare accident, there is further analysis needed if it was the rideshare driver who is found to be at fault. Both Uber and Lyft carry $1 million insurance policies to cover their drivers in certain accidents. Whether these insurance policies will actually pay out depends on the status of the rideshare driver at the time of the accident.

Let us take a look at Uber’s insurance policy terms. If the rideshare driver is using his or her vehicle for personal reasons and is not available to take passengers, the Uber insurance policy will not pay out on accident claims arising from this time. The driver and injured parties will be covered by any personal policy carried by the rideshare driver. If, at the time of the crash, the driver is available to take on passengers, but not currently carrying a passenger, then the driver’s personal policy will cover most of the damages associated with the accident, but Uber will offer contingency liability coverage. If the rideshare driver is currently carrying passengers at the time of the accident, the $1 million policy will kick in.

It is also good to be aware of the fact that Uber’s insurance coverage also includes uninsured and underinsured motorist coverage. This means that if the at-fault driver in the rideshare accident is either uninsured or does not cover enough insurance to properly cover damages, “underinsured,” then Uber’s insurance coverage may also kick in to help properly compensate injured parties.

Contact Our Expert Los Angeles Ridesharing Attorneys Today!

Whether it is attempting to get compensation for your injuries under a rideshare company’s liability coverage, its UM/UIM coverage, or under someone else’s insurance coverage, be prepared for a fight. These companies are all about their bottom line. This means that they will make every attempt to undermine your claim so that they do not have to pay you at all or they do not have to pay you what you should be owed. At Compass Law Group, we stand up to the big insurance companies. We are here to fight for our injured clients to receive full and fair compensation. Contact us today.


Find out if you have a case in a few minutes, call us at (310) 289-7126

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