Ridesharing has become the preferred alternative to traditional taxi services, but there are still a few kinks to work out. In a car accident involving a conventional taxi service, the taxi company would be liable and pay for the related damages. With Uber and Lyft, their insurance policies make it difficult for individuals to understand who is responsible for damages in a rideshare accident. The most prominent questions asked in these situations are “Who is held liable under in a ridesharing accident?,” and “What do those injured in a ridesharing accident need to do?”
Uber and Lyft Insurance Policies
Several circumstances decide which insurance policy will is appropriate in a ridesharing accident. Considering that ridesharing drivers use their own vehicles, they usually are only covered by their personal insurance when off-duty.
Uber’s policies are only set up to cover drivers who are currently driving a passenger, but not when they are on the way to pick the individual up. Lyft policies, however, are structured a little differently. If their drivers do not have personal insurance, they are still covered under Lyft’s contingent liability coverage. Lyft also covers drivers when they are en route to a passenger and while the passenger is in the vehicle.
Why Rideshare Claims are Denied
Since rideshare driving is classified as a higher risk, several major insurance companies refuse to provide insurance policies to these drivers. Although considered a drawback by many, it safeguards them from getting caught in the loopholes rideshare companies use to get out of liability.
The biggest loophole they’ll exploit to get out of paying a claim is by saying their drivers do not work for the company. Uber and Lyft classify their drivers as individual contractors, and therefore, the company’s insurance policy is not liable for any accidents that the driver is involved in while on- or off-duty.
What Rideshare Accident Victims Should Do
As stated before, liability issues often come into play with these types of claims. Therefore, anyone who is involved in a rideshare accident should immediately contact a Cleveland Uber and Lyft accident lawyer. These attorneys are equipped to handle all of the issues that may arise and can help the injured party get the compensation they are entitled to by law. Ohio Accident Attorneys has the resources to connect you with an experienced car accident lawyer in your area. Contact us today for a free case evaluation.