When Your Own Insurance May Not Apply During a Rideshare Accident

Rideshare accidents are not like other crashes on the road. Unlike other collisions that typically have one liable party and only involve one insurance policy, accidents involving rideshare services such as Uber and Lyft can involve multiple insurance policies. Making these accidents even more complex is the fact that each insurance company will try to shift blame to the other.

If you have been involved in a rideshare accident, either as a driver or a passenger, it is important to understand how insurance works in these scenarios.

Commercial vs. personal auto insurance policies for rideshare drivers

If you are a rideshare driver, your personal auto insurance may provide some coverage. However, if you are involved in a collision, your personal policy may not pay for injuries or other damages. State law in Oklahoma requires rideshare companies to provide insurance coverage during periods the driver is logged into the app. Personal auto insurance policies may exclude commercial activities, but rideshare services are legally required to provide coverage when the driver is waiting for a request, en route to pick up a passenger, or carrying a passenger.

Understanding the three phases of insurance coverage after a rideshare accident

Passengers and other drivers may be able to file a claim against the rideshare driver, a third party, or the rideshare service. Rideshare drivers may recover compensation from a third party only if they are found to be 50 percent or less at fault for the accident.

Under Oklahoma law, rideshare services are required to provide some coverage while their drivers are logged into the app. Coverage depends on the activity of the rideshare driver at the time of the crash. The three phases of rideshare insurance coverage are as follows:

• Phase one: The driver is not logged into the app – If the rideshare driver is not logged into the app at the time of an accident, they are not available to pick up passengers. As such, their personal insurance policy would apply. For other drivers who are hit by an off-duty rideshare driver, these cases are treated just like any other accident on the roads.
• Phase two: Driver is waiting for a ride request – When a rideshare driver is logged into the rideshare app but has not yet accepted a ride request, both Uber and Lyft provide limited coverage. These two rideshare services will provide up to $50,000 per person for bodily injury, up to $100,000 per accident for bodily injury, and up to $25,000 for property damage. Some insurance companies offer rideshare endorsements that provide coverage during this phase.
• Phase three: Driver is on the way to pick up a passenger or is carrying a passenger – If a driver has accepted a ride request and is en route to picking up the passenger, or they have a passenger in their vehicle, Uber and Lyft both provide significant coverage. During this phase, Oklahoma law requires at least $1 million in liability coverage for third-party injuries, which is typically provided through the rideshare company’s policy.

Why are rideshare accidents more complex?

There are many reasons rideshare accidents are more complicated than other accidents. These include:

• Insurers deny blame: After a rideshare accident, the insurance company representing Uber and Lyft will argue that the driver was not logged into the app. While this is not always true, the insurance companies are hoping that injured parties will give up on the claim or accept reduced compensation. An Oklahoma car accident lawyer can obtain trip data, GPS logs, driver app activity records, and other evidence to prove the driver was logged into the app at the time of the crash.
• Insufficient coverage: When drivers are in Phase Two, meaning they are logged into the app but they are still waiting for a ride request, the insurance coverage available from Uber and Lyft is relatively low. The compensation available may not be sufficient to fully cover your injuries.
• Multiple liable parties: There are times when third parties, as well as rideshare drivers, are to blame for a crash. For example, a rideshare driver may be traveling through an intersection while distracted, but another driver runs a red light and crashes into them. In this instance, a passenger may have to file a claim with the rideshare’s insurance company as well as the other driver’s insurance company. Under Oklahoma’s comparative fault law, rideshare drivers can recover compensation if their share of blame is 50 percent or less.

How to protect your claim

Whether you drive for Uber or Lyft and need to file a claim against another driver after an accident, or you were a passenger injured during a rideshare accident, there are important steps to take in order to protect your claim.

It is critical to obtain the information of all drivers involved in an accident, including their name, contact information, driver’s license number, license plate number, and their insurance information. If you are a rideshare driver, also provide your information to all other drivers. Locating witnesses and obtaining their names and contact information is also important, as their testimony can serve as evidence when filing a claim.

Before leaving the scene of the accident, also take pictures and video footage. These are very helpful when proving how the accident occurred and which driver is at fault.

Rideshare drivers and passengers alike should also obtain immediate medical treatment. Seeking medical attention will not only protect your safety and well-being, but it will also document your injuries and help prove the nature and extent of them.

Lastly, rideshare drivers and passengers should also both report any crash to the rideshare service through the app. Reporting the crash to the rideshare service promptly can help preserve evidence and clarify the driver’s status on the app for insurance purposes.

Our Oklahoma car accident lawyers can help after a rideshare collision

At Cunningham & Mears, our Oklahoma car accident lawyers understand the complexities involved in rideshare services, and we will apply our experience to help protect your rights in your case. Call us now or contact us online to schedule a consultation and to get the legal help you need.