Ridesharing companies have seen their businesses expand significantly since their launch. They are easy-to-access and convenient and have provided work opportunities for thousands of people in many countries. Some of us struggle to remember what life was like before we could summon a ride with a few taps on our smartphone screens.
However, as with any vehicle, an accident in a ridesharing car can happen within seconds. As a passenger, you could sustain serious injuries and need to claim the resultant costs. What are your rights?
Claim from the guilty party
If an accident was not the rideshare driver’s fault, both driver and passenger could pursue a damages claim through the other driver’s insurance. As with any claim or lawsuit, professional legal advice is essential, say experts at the Felicetti Law Firm.
If the rideshare driver caused an accident, you would need to claim from their insurance. This strategy is only successful for a passenger if a driver has a commercial insurance policy or a personal car insurance plan with a special provision adding extra coverage for when they work as a rideshare operator.
Very few rideshare drivers have these types of insurance. Instead, their insurance police will contain a business use exception that will not cover any damages incurred while they are driving for profit. However, large rideshare companies like Uber and Lyft insist that their drivers take out car insurance to cover damages and injury to passengers, such as the two aforementioned options.
The obvious risk is that rideshare drivers might lie to ridesharing companies about their insurance coverage. This could get them into trouble with the rideshare company and leave you without any means to claim from the driver’s insurance.
Third-party claims against ridesharing company’s insurance
Fortunately, you can make a third-party claim from companies like Uber and Lyft. They offer up to $1,000,000 in damages and injuries incurred by passengers when they use a rideshare service. However, you are only entitled to claim from this insurance fund once the driver’s insurance has been exhausted.
There is also $1,000,000 to claim from a ridesharing company’s uninsured/underinsured (UM/UIM) insurance. This only applies if the driver responsible for an accident is unknown. It also applies if the at-fault driver has no insurance or does not have enough insurance to pay a claim.
Passengers are only covered by this third-party insurance when they enter a rideshare vehicle until they exit it. The legal onus is on you to prove that you sustained the injury while in a rideshare vehicle.
Direct claims from a rideshare company
If you have exhausted all the options mentioned above, you could contemplate a lawsuit against a rideshare company. However, this will be an uphill battle and should be your last resort.
Companies like Uber and Lyft make it clear in their terms and conditions that they regard drivers as independent contractors, not employees. An employer is more liable for an employee’s actions than they are for acts of independent contractors.
Therefore, a court will most likely rule that you have no claim as you accepted the terms when you utilized the rideshare operator’s services. Claiming ignorance of these conditions will also not work, provided the company published them and asked you to acknowledge them when you registered.
Drivers’ rights
As independent contractors, drivers will struggle to claim damages from a rideshare company. They cannot claim workers’ compensation as they are not employees. Therefore, they must have sufficient insurance to repair their vehicle and treat any injuries they sustain. A driver could pursue claims from the other vehicle operator’s insurance if the latter was at fault.