Understanding Liability in Rideshare Accidents

Rideshare services such as Uber have risen greatly in popularity over the last few years. With features such as on-demand bookings which enable passengers to hail a car within minutes in addition to real-time tracking of a vehicle and quick and easy payment options, these services have revolutionized the way we travel.

However, despite the added comfort and convenience these services offer the public, research shows that one-third of rideshare drivers have been involved in a work-related crash. A study by the US National Bureau of Economic Research also reports an increase in vehicular deaths each year due to the prevalence of rideshare services. 

The legal landscape in this area entitles individuals who have been involved in a rideshare accident to seek compensation for their injuries and losses in certain situations. This article will take a closer look at liability in rideshare accidents, helping affected individuals pursue the right course of action.

Role of Insurance

Rideshare drivers and their vehicles are provided insurance coverage by their employer, the ridesharing company,  for any accidents that occur in the course of their duties. In addition, drivers are also required to carry personal insurance which provides coverage when they are off-duty and the vehicle is being used for non-business purposes.

This is because it is standard practice for car insurance policies to include an exclusion clause for non-business use, meaning a driver will not qualify for coverage if the vehicle was being used for personal reasons at the time that the accident took place.

Factors Affecting Liability

There are several factors that can influence liability in a rideshare accident. These factors can help determine which party a claimant should consider bringing legal action against.

• Driver off-duty: In situations where a rideshare driver is involved in an accident, the rideshare company will typically bear responsibility only if the driver was logged into the rideshare app at the time. If this is not the case, it is likely that the driver was off-duty and the vehicle was being used for non-business or personal reasons at the time the accident took place. This means that the injured party may have to seek recourse from the driver’s personal insurer rather than the ridesharing company.

• Awaiting passengers: If a driver was involved in an accident when they were logged into the app, yet awaiting a request from a new passenger, the rideshare company may bear some responsibility for the accident under third-party liability. If, however, the driver is not at fault for the accident the rideshare company is unlikely to be held liable. In this case, the driver’s personal insurer may be responsible for paying out damages in a rideshare accident claim.

• Ride accepted: If the driver was involved in an accident after accepting a ride request from a passenger and was either en route to pick them up or driving them, then the rideshare company’s insurance policy should cover the accident.

• Third-party responsibility: If a third party was responsible for a rideshare accident, an injured party may have to bring a claim against their insurer rather than the rideshare driver or their employer.

Attributing liability in a rideshare accident can be a complicated process. A qualified personal injury lawyer can help individuals navigate their claims with greater confidence and clarity.