Rideshares are a key part of life today, and they’re not looking to stop anytime soon. The ridesharing market is projected to grow over 40% between 2023 and 2028. [1]
However, as convenient as these services are, it’s not uncommon to hear of a rideshare accident or even get involved in one. After all, about a third of rideshare drivers admit to being involved in crashes when at work. Now, if you’re caught in the middle of this, what would be your recourse? Who is liable for a rideshare accident? [2]
Understanding liability in rideshare accident:
The Rideshare Driver
About 70% of all accidents have a human factor at the center. That’s why it’s natural for rideshare drivers to be held liable for many of these accidents. Maybe they were overspeeding. Perhaps they ran a red light, or they were simply distracted, and you ended up injured as a result. [3]
Now, it’s essential to understand that personal insurance rarely, if ever, covers accidents that occur while driving for a rideshare company. Most policies exclude these commercial activities. However, rideshare companies often step in to cover these gaps, but it’s a little complex.
Rideshare insurance coverage comes in levels, also known as periods.
Period one has the driver logged into the app. However, they’re yet to accept a ride request. In that case, the rideshare company provides limited liability coverage for personal injury. It could be to the tune of USD$50,000 for each person, USD$100,000 for each accident resulting in bodily injury, and USD$25,000 for property damage.
Period two has the driver en route to pick the passenger up, having accepted the ride. The rideshare company will typically offer higher liability coverage than in the first period.
In the third period, coverage is at its highest, usually up to USD$1 million. This is when the driver is transporting the passenger. However, if the accident happens when the driver is offline, their personal auto insurance is responsible for the payout.
Given the complexities that may arise from these insurance situations, you may be better off having an NJ rideshare accident attorney or any similar lawyer near you to help with your claims. They understand the law and ins and outs of rideshare and personal auto insurance. That said, they can fight to ensure your personal injury claim is properly handled and that you receive the compensation you deserve.
Other Drivers
Sometimes, your rideshare vehicle driver will do everything right, but you may still end up in an accident caused by other drivers. In that case, the offending driver may be liable for the damages. It’ll then be up to their auto insurance policy to cover the costs of injuries and property damage. That’ll, of course, depend on the limits of their policy.
Shared Fault
Some states have comparative negligence laws in place. This means that if multiple parties share fault for the accident, damages may be divided according to each party’s degree of fault.
Say the rideshare driver is 70% at fault. The other at-fault part is 30% responsible. In that case, the injured party may recover 70% of their damages from the rideshare driver’s insurance and 30% from the other driver’s insurance company.
Passengers liability in rideshare accident
It’s not always drivers who cause accidents in rideshares. Sometimes, passengers play a role, too. Say they distracted the driver, leading to them losing focus and causing a crash. In that case, the passenger potentially shares some liability.
There are legal provisions for them to file a claim against the rideshare company’s insurance, which covers them whenever they’re using the service. If another driver was involved, they can also file a claim against their insurance. If, indeed, it’s proven that they share liability for the accident, the compensation they’re entitled to could reduce to reflect their contribution to the accident.
Steps To Take After a Rideshare Accident
You’ve been involved in a rideshare accident. Now what?
- Report the accident as soon as possible. Make sure everyone affected has received medical attention.
- Take photos of the vehicles, injuries, and the surrounding area. Get contact information from all parties involved, including witnesses.
- Let the rideshare company know about the accident as soon as possible.
- If the circumstances are right, you may need to file a claim with the rideshare company’s insurance, your own insurance, or the other driver’s insurance.
Given just how complex these cases can be, you may need to let a personal injury attorney in. They can help you make sense of the legal options and ensure you receive what’s fair. Knowing these steps is vital when considering liability in rideshare accident.
Closing Thoughts
Liability in rideshare accident may not be an easy situation to be in. However, it does happen. If you or your loved one has been involved, you know the legal process to make things right. If you do decide to seek recompense, don’t walk alone. Go with a lawyer you trust and let them get you the compensation you deserve.
Sources:
1. “Ride-sharing market size worldwide from 2017 to 2023 with a forecast through 2028 (in billion U.S. dollars)”, Source: https://www.statista.com/statistics/1155981/ride-sharing-market-size-worldwide/
2. “One-third of ride-share drivers have had a crash on the job, survey finds”, Source: https://today.uic.edu/rideshare-crash-research/
3. “Risky behaviors and road safety: An exploration of age and gender influences on road accident rates”, Source: https://pmc.ncbi.nlm.nih.gov/articles/PMC10802962/
