In many parts of the United States, Uber and Lyft have changed transportation by displacing taxis and other conventional taxi modes. Uber and Lyft drivers, like taxi drivers, are not employed by the services, nor do the firms own their vehicles.

But the technological nature of ridesharing services might not greatly impact assigning fault and receiving compensation after an accident. What legal options are available if you are involved in an Uber-Lyft rideshare accident? Find out below:

Legal options for injured Uber and Lyft passengers

If you were hurt while riding with an Uber or Lyft driver, you might have up to three alternatives for insurance compensation:

Uber or Lyft driver’s insurance

One choice is to use the Uber or Lyft driver’s insurance, which is rarely necessary. When they work for Uber or Lyft, most drivers do not have business insurance coverage or a clause in their auto insurance policy covering passenger injuries. Instead, insurance companies frequently include business usage exclusions in personal auto insurance policies, which would cover accidents sustained while the insured is driving for pay.

The faulty driver’s insurance

You may be able to use another driver’s insurance to pay for your injuries if they were the accident’s fault. If they refuse to pay, you could submit a third-party insurance claim to their insurer and then pursue a personal injury lawsuit. If the collision and your injuries are mild and the motorist who hit you has appropriate insurance, this might be sufficient. But the victim may occasionally not receive a full settlement if the faulty driver’s insurance coverage is insufficient.

Uber or Lyft’s third-party liability insurance

In the end, you’ll probably need to file a claim against the ridesharing company’s third-party liability insurance if a major accident occurred while you were a passenger of an Uber or Lyft driver. For injuries and property damage in the event of an accident, Uber and Lyft each offer up to $1 million and the same amount through their uninsured/underinsured motorist insurance coverage.

But only when the ridesharing driver’s insurance, if any, has been used up does Uber and Lyft coverage kick in. You must prove that the at-fault motorist had insufficient insurance, insurance to cover your injuries, or was not recognized (a hit-and-run claim) to make a claim against the ridesharing company’s UM/UIM coverage.

Options for additional individuals hurt by Uber or Lyft drivers

You may file a claim against the liability insurance of the Uber or Lyft driver who hit you while riding in another car. This will resemble the majority of typical auto accident claims. You can file a lawsuit against the insurance policy of the ridesharing firm since the driver’s policy most likely does not cover accidents when they are operating a vehicle for payment.

What if the Uber or Lyft driver was driving a passenger for hire when the accident occurred? When this happens, $1 million in insurance coverage is provided by Uber or Lyft for those hurt in other vehicles.

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