The process for settling compensation payments is complex and has a number of moving parts. Included in these settlements can be compensation for medical damages, car damages, pain and suffering, and more. With new ride-sharing services like Uber and Lyft in the driving market, this process can be even more complicated. Ride-sharing services like Uber and Lyft have contributed to about a 2%-3% increase in traffic fatalities for drivers, passengers, and pedestrians since they were introduced to the market. With ride-sharing services becoming increasingly popular, it is important to understand that there is a risk of the driver being in an accident and causing damages to the vehicle’s passengers. When involved in a ride-sharing accident as a passenger, you may be eligible for compensation.
What to do when involved in an Uber or Lyft accident
All Uber and Lyft drivers must have car insurance on their own. Uber and Lyft also have expensive policies to help cover accidents that involve their drivers. The status of the ride-sharing service will typically explain who is the responsible party for the coverage of the accident.
There are four scenarios in which we will know who is responsible. The first scenario is that the Uber or Lyft driver is not working. If the driver is not logged into the application and not logging time by any means for the company, that driver is considered off the clock and is responsible for all accident-related damages, along with the third party involved in the accident.
The second scenario is that the Uber or Lyft driver is working, logging time, logged into the ride-sharing app, and is open to accepting ride requests. In this situation, Lyft and Uber’s limited liability insurance policies are now present and may cover damages caused by an accident. These policies include a coverage limit of $50,000 per person for any personal injuries, $25,000 to cover any damage to property, and a total cap of $100,000 for all expenses caused by a single accident.
The third situation of a ride-sharing accident is that the Uber or Lyft driver is working and currently driving to the pick-up point. When an Uber or Lyft driver is involved in an accident while on their way to a passenger, an insurance policy worth $1 million can be activated by Uber or Lyft to help pay for any accident that occurs along the way, especially when involving other drivers and pedestrians.
The last instance is when the Uber driver is working and actively transporting their requested passenger to the final destination. Any accidents that occur for the Lyft or Uber driver during this process may be covered by a $1 million insurance policy. This is active up until the passenger is dropped off and the transportation request is fulfilled.
It is important to understand these scenario breakdowns for Uber and Lyft payments when settling a claim for compensation. A dedicated injury lawyer can help guide you through the legal process and help you to understand different settlement claims and when you are entitled to your compensation.