Rideshare companies have a major say in how liability plays out when one of their drivers is involved in an accident and anyone involved in an accident should be aware of how liability is divided between the driver and rideshare company and if the passenger is covered by that liability.
Rideshare companies can ultimately be liable for accidents depending on the circumstances that determine whether the driver was on a ride request or at the very least logged into the app when an accident occurred.
This is very important because it has implications for the drivers insurance coverage, the companies insurance coverage, legal liability, how the claim is going to be resolved, and who is going to pay the claim.
Rideshare Company Liability
Rideshare company liability entirely depends on how companies control drivers and specifics related to accidents.
Depending on specific state laws and any contractual obligations between the drivers, customers, and companies, legal liability can also change. It can also differ significantly from traditional taxi services.
Understanding Rideshare Accident Liability
Rideshare accident liability is when a rideshare company is liable for injuries or damage caused by its drivers. This liability usually exists when the driver is engaged in work for the rideshare company, e.g., transporting a passenger, or actively waiting for someone to request a ride.
Rideshare companies often argue that their allege workers are independent contractors, so liability only exists during active transport. However, if the driver is logged into the app and is available for rides, many courts say that the rideshare company is responsible, at least in part, for the conduct of its driver.
How Are Rideshare Companies Regulated?
Rideshare liability is informed by laws at both federal and state levels, and are further shaped by California’s Assembly Bill 5 (AB 5) that could classify how an individual rider is employed. In some states, legislature has dictated Insurance companies for rideshare companies need to provide insurance to when the driver is acting as the driver.
Insurance policies need to cover everything in-between the driver being on the app, receiving ride requests and transporting passengers. Insurance policies often have layers of coverage with different approach periods.
Knowing where the fluctuations occur on the claims perspective for accidents with rideshare companies this is necessary in Oxnard and ride-sharing businesses in general.
How Do Rideshare Companies Differ From The Liability Of Traditional Taxis?
Taxi companies usually employ drivers directly, which means that liability for accidents will always apply when the taxi driver is working. Taxi drivers are employed directly by the taxi companies, unlike rideshare companies independent contractors with very limited liability.
Taxi insurance is for commercial use, that covers the taxi at all times it is operating. Rideshare insurance does not protect for the periods for which the rideshare driver is logged into the app outside the active transport.
This difference can significantly change how Oxnard car accident lawyers initiate the a claim, and it could be on the ride-sharing company’s liability.
How Fault is Determined in Rideshare Accidents
Fault determination in rideshare incidents involves assessing multiple parties and legal standards specific to the rideshare framework. Liability choices primarily rest with the action or inaction of the driver, the rideshare company’s policies, and specific state laws.
Primary Parties in a Liability Assessment
Yet liability can lie on a rideshare driver, usually if negligence caused the accident. Fault can also rest on passengers, other drivers or even pedestrians.
The rideshare driver’s employment status at the moment of the accident is critical. If the driver was en route to pick up a passenger or had a passenger in the car, the driver’s insurance and the rideshare company’s commercial insurance is likely responsible.
An Auto accident lawyer in Oxnard regularly investigates whether a party’s personal insurance also applies when a rideshare accident occurs. This issues impacts which party is financially responsible for damage and injuries.
Effects of Rideshare Company Policies
Rideshare companies typically have several layers of insurance coverage. The proficiency of insurance coverage depends on the phase of a rideshare transaction: waiting for a ride request, en route to pick up a passenger or with passengers in the vehicle.
Ridesharing companies like Uber or Lyft have insurance policies that provide liability coverage from $50,000 to $1 million, depending on the circumstance. Insurance to cover liability, damages, and injuries to other parties may be either a stand-alone policy or supplemental insurance to personal auto insurance if the rideshare driver was on duty.
A rideshare from a rideshare company is also impacted by any contractual obligations of the rideshare company with drivers, such as any obligations of the driver to comply with safety regulations and not pass their background check.In addition to issues of liability, actions or inactions can impact accidents liability.
State Law Issues Impacting Liability
Every state will have varying laws regarding rideshare liability. Some states find companies strictly liable for accidents when the driver of the rideshare was plugged into their app, regardless of who was the cause of the crash.
Some states follow reasonable standards of negligence, requiring the proof of acts or omissions of the driver, or acts or omissions of the rideshare company did not fall within their standard of reasonably acting, in a negligence way.
In California, California law requires the rideshare company have minimum insurance coverage and make them liable, when the driver is on a trip.
Due to these discrepancies, an Auto accident lawyer in Oxnard must carefully analyze local laws to advise clients of possible claims and compensation they can pursue based on their rightful claims and compensation.
Insurance Coverage and Compensation in Rideshare Accidents
Rideshare accidents add a layer of insurance coverage that could affect liability and compensation to the injured party.
Navigating the insurance policy of rideshare company, the rideshare driver liability, and the passenger’s rights is a complicated and very important process for anyone who is attempting to navigate a rideshare accident claim after an accident.
Rideshare Company Insurance Policies
Rideshare companies have specific insurance policies for covering both drivers and passengers while the app is in use and provides extensive coverage during its various stages when the rideshare driver is accepted a ride.
If the rideshare driver is logged into the app and since they are without passenger approval to do commercial work, the rideshare company will have limited liability obligations and typically coverage in the neighbourhood of $50,000 per person if they are unfortunate enough to get into an accident.
Rideshare driver policies are designed to fill the gap that the driver’s personal auto policy may not cover during rideshare activity, potentially left as a gap in coverage to fill.
It’s important to remember that the insurance coverage amounts differ between rideshare companies and the insurance coverage is often a confusing area that may need the interpretation of an experienced Oxnard car accident lawyer to aid in advising the rideshare insurance implications to ensure the appropriate claims are filed and identified.
Driver Personal Insurance
General private auto insurance policies will exclude coverage while their policyholder uses their personal vehicle to pursue commercial work, which would include ridesharing.
As a topical matter, when rideshare drivers are engaged in commercial activity, they generally have no private insurance coverage, if only for the fact that the rideshare activity is not covered during rideshare activity in a commercial capacity.
Some rideshare drivers have gap insurance that may provide coverage during that excluded period of being engaged in rideshare activity, but that is ultimately determined by the rideshare company’s insurance coverages, as compared to the drivers’ private auto insurance.
After rideshare accidents, sorting out whether rideshare insurance or private auto insurance applies is a typical complication.
An experienced auto accident lawyer in Oxnard will know how to identify liability in concert with personal auto insurance coverage or rideshare insurance coverage to maximize the rideshare accident victims compensation.
Passenger Rights and Compensation
Passengers in rideshare accidents who are injured can receive compensation from several avenues. Passengers can pursue claims against the rideshare company’s insurance or against the driver’s personal policy, or if another vehicle is at fault against any other party’s insurance.
In general, passenger rights are protected in ridesharing accidents by:
- Liability coverage of at least $1 million during the trip.
- Coverage for medical bills, lost wages and pain and suffering.
- Ability to pursue claims against those negligent parties.
Passengers should record the details of their injuries and seek legal advice as soon as possible. Provisions can be made, if necessary, but it is wise to triangulate these claims as quickly as possible.
An experienced car Accident lawyer in Oxnard can help passengers track their claims to ensure that full and fair compensation are achieved.