In just the past decade ridesharing apps such as Uber and Lyft have become a standard way of travel for millions, with each company currently valued at billions. They are most popular in within larger, metropolitan areas in which it can be difficult to easily travel by car. However, although they are wonderful in so many ways, they are not perfect. Car accidents can – and do – still occur.
One of the most widely asked questions is what happens when a passenger’s ridesharing vehicle has been involved in an accident from which they have incurred an injury. Usually the driver who is at-fault is the one who must also take financial responsibility for the crash. But in some cases it is the ridesharing company’s car insurance that may be applicable.
Whose Insurance Applies in Ridesharing Accidents?
When a ridesharing driver is at fault for an accident, in theory he or she would have their car insurance take care of the passenger’s injuries. However, this is only the case when the driver has obtained either a commercial policy or a personal policy that houses a provision that provides for insurance when engaged in the capacity of a driver. The reality is that most drivers do not purchase such a policy. So now what?
When a ridesharing driver has not purchased either kind of the aforementioned insurance policies, the passenger would then request that the ridesharing company apply its third party liability insurance coverage. This coverage will pay up to $1 million per accident for personal injuries and property damages. However, this policy will only be applied if the ridesharing driver’s policy does not account for ridesharing accidents or is unable to fully compensate you for your injuries/damages.
When a third-party driver is the one at fault, you would look to recover through his or her car insurance policy or you would look to file a personal injury lawsuit for compensation.
UI/UIM Insurance
Even if these policies are implemented but still don’t fully compensate you, the company will then apply its uninsured/underinsured (UI/UIM) insurance coverage, which usually will pay up to $1 million per accident.
Most of these ridesharing companies hire their drivers as independent contractors rather than employees, which prevents them from being liable for their drivers’ negligence. This makes it much more likely that you would recover through their liability UIM coverage and not through the company directly.
As a younger, often-changing industry, many of the legal issues that surround ridesharing are complex or even unknown. That’s why it is so important to consult with a knowledgeable and experienced New Mexico ridesharing attorney who can help to explain your options.
MPJ Law Firm Can Help Those in NM Who Have Been Injured in a Ridesharing Accident
If you or a loved one has been injured in a ridesharing accident, you may have no idea what to do. But no matter what you should not have to pay the price for someone else’s mistakes. At MPJ Law Firm, we have a deep understanding of ridesharing accidents and the law surrounding them as well as an in-depth experience dealing with insurance companies. We will always act in your best interest. To learn more or to schedule a free consultation, contact us today!
Posted in: Ridesharing Accident