Article source: Rosenbaum Injury Law
Rideshare accidents involving Uber or Lyft can create stressful and confusing situations. These crashes differ from other types of accidents because they involve additional insurance and legal rules that are not always clear-cut. Knowing how liability works could make it easier for accident victims to avoid mistakes.
Rideshare services play a significant role in transportation in Philadelphia. Due to busy streets, heavy traffic, and constant pickups in areas like Center City, University City, and South Philly, the likelihood of an Uber or Lyft car being involved in a collision is higher. As a result, many injured passengers and drivers seek the help of a Philadelphia rideshare accident attorney to determine fault and identify the applicable insurance coverage.
Why Rideshare Accident Liability Is Complicated
Uber and Lyft classify drivers as independent contractors, not employees. Under this arrangement, the companies can limit their direct liability unless specific legal conditions are met. Liability is mostly based on what the driver was doing at the time of the accident.
The Three Driving Periods That Determine Liability
Liability for rideshare accidents is generally divided into three categories.
- If the app is switched off, the rideshare company is usually not involved. The driver’s personal auto insurance typically applies.
- When the driver has logged in but is waiting for a ride, Uber or Lyft will provide limited, contingent insurance coverage if the personal policy does not cover the damages.
- When a driver is en route to pick up a passenger or is actively transporting one, the rideshare company’s full commercial insurance policy typically applies and may provide up to $1 million in coverage.
It is crucial for accident victims to understand that coverage limits and compensation options vary depending on the driving period.
Who May Be Held Liable in a Rideshare Accident
Liability does not always stop with the rideshare driver. Depending on the circumstances, responsibility may also fall on other parties involved, including:
- The rideshare driver.
- Another negligent driver involved in the crash.
- The rideshare company.
- In unusual circumstances, other entities, such as automakers, may also be involved.
Determining liability for an injury requires reviewing evidence such as police reports, witness statements, app activity records, and insurance documents.
Challenges Accident Victims Commonly Face
One of the greatest challenges in rideshare cases is proving the status of the driver’s app. Insurers might argue over coverage in a dispute over whether the driver was technically “on duty.” With no clear evidence, insurance claims can be delayed or denied.
Another common issue arises when multiple insurers blame one another. When multiple insurers refuse responsibility, victims bear the burden of mounting medical bills and lost wages.
Why Understanding Liability Makes a Difference
Understanding rideshare liability helps accident victims better protect themselves. It reduces the likelihood of premature settlement, neglecting potential sources of compensation, or bearing the brunt of the consequences. Given the potential for serious injuries, it is crucial to accurately determine liability to ensure maximum recovery and peace of mind.
Key Takeaways
- Rideshare accident liability is primarily determined by the driver’s app status at the time of the crash.
- Uber and Lyft offer various types of insurance based on what period you are driving.
- The rideshare driver is not the only one who can be liable.
- The driver’s app activity and fault must be clearly established.
- By understanding how liability works, victims are better positioned to pursue compensation in a timely manner.
