Who Is Liable in an Uber or Lyft Accident? Understanding Rideshare Insurance Policies
Accidents involving rideshare services like Uber and Lyft can create a confusing maze of legal and insurance questions. Is the driver, the rideshare company, or a third-party insurance provider responsible for covering the damages? If you’re wondering how to untangle this web, you’re not alone.
It is important to know when to consult a trusted Baltimore Uber accident lawyer. This guide breaks down everything you need to know about liability in a rideshare accident and the insurance policies that may apply in Maryland.
How Rideshare Insurance Works
Before we can discuss liability, it helps to understand how rideshare companies like Uber and Lyft structure their insurance policies. These policies vary depending on what stage of the trip the driver is in at the time of the accident.
1. Offline or Personal Driving Mode
When a rideshare driver is offline—not logged into the app—and gets into an accident, Uber and Lyft provide no coverage. Liability falls solely on the driver, whose personal auto insurance policy applies.
2. Waiting for a Ride Request (Period 1)
Once the driver is logged into the app but hasn’t yet accepted a trip, Uber and Lyft maintain limited liability coverage:
- Bodily injury liability: Up to $50,000 per person
- Total liability per incident: Up to $100,000
- Property damage: Up to $25,000
This only applies if the driver’s personal auto insurance declines or does not cover the claim.
3. On the Way to Pick Up a Passenger or During the Trip (Periods 2 and 3)
If the driver is en route to pick up a passenger or actively driving someone to their destination, rideshare companies provide comprehensive coverage:
- $1 million liability coverage (in most markets)
- Uninsured/underinsured motorist coverage
- Collision and comprehensive coverage (if the driver has personal coverage, with a $2,500 deductible)
- Exceptions: In Maryland, Lyft maintains $125,000 in third-party liability insurance when a driver is en route to a passenger.
Understanding these stages is crucial in determining the applicable insurance policy.
Who’s Liable in an Uber or Lyft Accident?
Determining liability depends on several factors, including the driver’s status, the cause of the crash, and if multiple parties were involved. Here’s a breakdown of potential liable parties:
1. The Rideshare Driver
Rideshare drivers are considered independent contractors, not employees of Uber or Lyft. If the driver’s negligence—such as running a red light or texting while driving—caused the accident, they may be personally liable. However, the insurance coverage available depends on which period the driver was in at the time.
2. Uber or Lyft
While Uber and Lyft classify their drivers as independent contractors, they provide insurance coverage in specific circumstances:
- When the driver is logged into the app and between rides.
- When the driver is en route to pick up passengers or actively transporting them.
- In rare cases, Uber or Lyft could be liable for company-wide negligence, such as failing to vet a driver with a poor safety record.
3. Other Drivers or Third Parties
If another driver caused the accident, their insurance is usually the first to provide compensation. In multi-vehicle accidents, liability may be shared among multiple parties.
Special Scenarios in Rideshare Accidents
While the basic liability scenarios cover most cases, rideshare accidents often involve unique challenges:
1. Uninsured or Underinsured Drivers
If an uninsured or underinsured third party causes the accident, Uber and Lyft offer uninsured motorist coverage (UMC). A rideshare accident lawyer in Baltimore, MD, can help ensure your UMC claim is properly filed and documented.
2. Pedestrian Accidents
If a pedestrian is hit by an Uber or Lyft driver, compensation may come from the driver’s personal insurance, Uber/Lyft’s coverage, or both—depending on the driver’s app status.
3. Passenger Claims
Passengers in a rideshare accident typically have a strong case since they are almost never at fault. They can file claims against the driver, Uber/Lyft, or a third-party motorist.
4. Multi-Vehicle Accidents
Rideshare accidents involving multiple vehicles often result in liability disputes. Insurance companies may attempt to shift responsibility, making legal representation essential.
Why You Need a Baltimore Uber Accident Lawyer
Rideshare claims can quickly become complex. From navigating multiple insurance policies to dealing with corporate legal teams, accident victims often struggle to secure fair compensation. Here’s how a lawyer can help:
1. Thorough Investigation
A lawyer will collect crucial evidence, such as app activity logs, witness statements, and police reports, to build a strong case.
2. Expert Negotiation
Insurance companies often try to minimize payouts. A lawyer can negotiate effectively to maximize your compensation.
3. Clarifying Insurance Coverage
An attorney can determine whether the rideshare company’s policy is primary or secondary and address issues with denied claims.
4. Litigation, If Necessary
If negotiations stall, a lawyer who is prepared to take the case to court can pressure insurers into offering a fair settlement.
Steps to Take After an Uber or Lyft Accident
Whether you’re a passenger, pedestrian, or another driver, follow these steps to strengthen your case:
- Seek Medical Attention – Prioritize your health and get medical care.
- Call the Police – Request an official report, which can serve as crucial evidence.
- Document the Scene – Take photos, collect witness contact information, and note details of the ride.
- Notify the Rideshare Company – Report the accident through Uber or Lyft’s app.
- Consult a Lawyer – Contact Nicholas A. Parr, a trusted Baltimore Uber accident lawyer to assess your case and guide you through the claims process.
Protect Yourself and Your Rights
Accidents involving Uber or Lyft can leave you facing medical expenses, lost wages, and insurance battles. Understanding rideshare insurance policies is a great start, but having professional legal guidance makes all the difference.
Contact The Law Offices of Nicholas A. Parr Today!
If you’ve been injured in an accident involving an Uber or Lyft driver, The Law Offices of Nicholas A. Parr is here to help.
With years of experience handling bicycle and rideshare accident cases, our team is dedicated to protecting your rights and securing the maximum compensation you deserve. Don’t face this challenging time alone—let us fight for your justice. Contact us today to schedule a no-obligation consultation.
Remember, time is critical in accident cases, so don’t delay—reach out now and take the first step toward your recovery.
