Ever hopped in an Uber or Lyft after a long night out?
Millions ride every day. What happens when that short trip home turns into a collision?
Here's the truth:
Rideshare accidents don't settle like other car accidents. Not by a long shot. There are different insurance policies in play, liability becomes complicated and the claims process can become confusing quickly.
That's why victims often end up confused, underpaid, or ignored...
In this post, we discuss why rideshare accidents are unique. Learn what aspects of the accident your qualified car wreck attorney will analyze.
Let's dig in.
What you'll uncover:
- Why Rideshare Crashes Are So Different
- The 3-Phase Insurance Rule Nobody Talks About
- Who Actually Pays After A Rideshare Crash
- How A Car Wreck Lawyer Handles These Claims
- What To Do In The First 24 Hours
Why Rideshare Crashes Are So Different
Regular car accidents are usually pretty simple.
Two drivers, two insurance policies, and one adjuster trying to figure out who was at fault. Rideshare accidents completely toss that scenario out the window. Now you have:
- A rideshare driver
- A billion-dollar tech company
- Multiple insurance policies stacked on top of each other
- A "trip status" that decides who pays
Which is why traffic accident rates are going up. Research from the University of Chicago Booth School of Business discovered that ridesharing's entrance corresponds with about a 3% yearly increase in fatal crashes throughout America. Lots of wrecks...and lots of people needing advice on what to do after.
That's why having a skilled car accident compensation lawyer in your corner is even more vital. Rideshare claims have variables a traditional collision claim will never face. From the driver's app status when the crash occurred to which insurance policy applies, your case could hinge on any one of these issues.
The 3-Phase Insurance Rule Nobody Talks About
This is where things get messy...
Uber and Lyft divide their policies into three phases depending on what the driver was doing when the collision occurred. If you claim under the wrong phase you could walk away with close to nothing.
Here's how it breaks down:
Phase 1: App Is Off
The driver was not logged in. Ok, if they aren't logged into Rideshare.com, they are just a normal driver on a normal road. Only their personal auto policy would be in effect.
Uber and Lyft owe you nothing here.
Phase 2: App Is On, Waiting For A Ride
The driver is now logged into the system awaiting ride requests. Insurance provided by rideshare companies is limited, typically $50k per person injured and $25k property damage.
Not great, but better than nothing.
Phase 3: On The Way To A Passenger Or Actively Driving One
Uber/Lyft now have their big policies triggered. They offer $1 million of liability coverage while you are on a trip. This is typically where most riders are when an accident occurs.
Whether the driver was in phases can completely alter your claim. A knowledgeable car wreck attorney will act quickly to preserve what phase you are in before data is deleted.
Who Actually Pays After A Rideshare Crash
Regular crashes are simple. One driver was at fault, their insurance pays. Done.
Rideshare crashes? Not so simple.
There could be several parties on the hook, including:
- The rideshare driver
- Uber or Lyft themselves
- Another motorist who caused the wreck
- The rideshare driver's personal insurance
- The rideshare platform's commercial insurance
And usually it's everyone blaming each other. Uber will blame the driver for being an independent contractor. The driver will blame Uber for being between rides. The other driver's insurance will blame the rideshare driver for causing the accident.
It's a real mess.
That's before considering that Uber's rate of fatalities increased from 0.62 to 0.87 deaths per 100 million vehicle miles traveled from 20 20/21 to 20/22. More crashes are happening, and more arguments about who pays are too.
How A Car Wreck Lawyer Handles These Claims
A rideshare accident case needs a completely different playbook.
A good car wreck attorney knows how to request evidence, meet deadlines, and fight an insurance company's team of attorneys whose job is to pay you the least amount of money possible.
Here's what a good lawyer will do:
- Pull the app data: Uber/Lyft will get subpoenaed to verify driver's exact status during the crash.
- Find All Insurance Policies: They will search through all personal, business, and rideshare policies that might cover the accident.
- Deal with corporate counsel: Uber and Lyft have very large law departments. You might be outmatched if you are a solo personal injury attorney.
- Document proof of damages: Hospital bills, lost earnings, future treatment, pain and suffering...you name it.
- Don't accept lowball offers: Uber/Pool Settlement offers are quick and VERY low. A reputable attorney won't roll over.
Rideshare cases often have higher stakes than other personal injury cases because injuries sustained at city intersections are often severe. Sprains, head trauma and lengthy recuperation periods are common.
What To Do In The First 24 Hours
Minutes and even hours after a rideshare crash can be crucial. The actions you take will determine the success of your claim.
Follow these steps:
- Call the police: Always get an official crash report. Do not skip this.
- Get medical attention: Even if you feel okay. Injuries can take hours to appear.
- Take a screenshot of the ride: Launch your Uber/Lyft app and take a screenshot of your trip details, driver info, and route.
- Take photos: Damage, injuries, road conditions, street signs... snap as many as possible.
- Get witness details: Names and phone numbers of anyone who saw what happened.
- Do not chat with insurance yet: Whatever you say can and will be used to minimize your settlement.
- Call a car wreck lawyer: Sooner is always better than later.
Miss one of these and you just made the insurance company's job a lot easier.
Final Thoughts
Rideshare crashes are a completely different beast from regular car accidents.
With the murky insurance phases, corporate attorneys and multiple parties involved, it's easy for victims to become overwhelmed and lost in translation. This is precisely why retaining a car wreck attorney that has actual rideshare experience is typically the best decision a crash victim will ever make.
To quickly recap:
- Rideshare crashes involve 3 different insurance phases
- Multiple parties could be on the hook for damages
- Uber and Lyft have massive legal teams working against you
- What happens in the first 24 hours matters a lot
- A skilled car wreck lawyer levels the playing field
Don't accept less than what the case deserves. Proper legal counsel can make a chaotic situation just.
