Car Accident Lawyer
The emergence of rideshares has all but transformed the public transportation landscape across the country. Fans of popular rideshare companies like Lyft laud them for their versatility, promptness, and affordability. But these new transportation options have also created new problems. Since rideshares involve individual drivers working under the umbrella of a company, things can get hairy when there’s a liability issue such as an auto accident injury. If you’ve been hurt as a rideshare passenger, your injuries are probably covered by insurance. But is it the at-fault driver’s, or the rideshare companies? This article will help you get a clear answer.
How Rideshare Liability Works
Emerging in force over the last five or so years, rideshares are best described as arrangements in which a passenger rides in a private vehicle for a fee, similar to a traditional cab. Unlike cabs, however, these are typically arranged by a website or app. Rideshares are popular because they’re often more widely available than cabs cheaper and easier to book. Like any vehicle, however, they are vulnerable to accidents. When you are injured in an accident in a rideshare, there are generally two liability options:
- financial responsibility covered by the at-fault driver’s insurance
- financial responsibility covered by Lyft’s car insurance coverage
When the Driver’s Insurance Applies
Typically, your injuries in the private driver’s car would be covered by that driver’s private insurance if they are at fault. A big caveat, however, is that the driver must have either a commercial insurance policy or a provision in their personal car insurance policy that covers incidents that happen when using the car for rideshare purposes. Unfortunately, many ridesharing drivers probably won’t have a commercial insurance policy or such an exemption. In fact, many private policies specifically exempt coverage for business use.
When Lyft Insurance Applies
Fortunately, Lyft does have third party liability insurance coverage. This coverage pays up to $1 million toward personal injuries and property damage for an accident. But it usually only applies after the ride-sharing driver’s own insurance has been tapped out. If the driver lacks such a policy, it’s up to Lyft how to proceed. If another driver was at fault, of course, you would seek damages from their insurer.
While rideshares have created new, flexible options for many, they also introduce sticky situations when it comes to getting compensation following an accident. If you are dealing with the aftermath of a Lyft accident, contact a car accident lawyer in Memphis, TN to learn more about your compensation options.
Thanks to Darrell Castle & Associates, PLLC for their insight into personal injury claims and rideshare accident liability.