Who is Responsible for a Lyft or Uber Accident?

More and more people are using rideshare services such as Uber or Lyft because of their convenience and user-friendly apps. When you need a ride, a few taps on a smartphone is all it takes to be on your way.

However, if you are injured in a Lyft or Uber car accident, figuring out who is responsible is not so simple. While rideshare companies provide liability coverage, these claims often include multiple insurers and different coverage levels. This is especially true when more than one vehicle is involved.

Having an experienced car accident lawyer on your side after a rideshare accident is essential. Here is a guide to determining compensation for those who are injured in a Lyft or Uber accident.

DO LYFT AND UBER PROVIDE INSURANCE FOR PASSENGERS?

Yes. Michigan law requires transportation network companies such as Uber and Lyft to maintain substantial liability insurance. When a driver has accepted a ride request or is transporting a passenger, that coverage is typically up to $1 million in third-party liability. Occupants of other vehicles, as well as pedestrians, bicyclists and motorcyclists, may also be able to claim against that coverage if the rideshare driver is at fault.

Uber and Lyft drivers are generally treated as independent contractors rather than employees. They drive their own vehicles and must carry Michigan No-Fault insurance, though a personal auto policy may exclude rideshare use. The company’s policy is meant to fill that gap while the driver is working a trip.

Coverage is different when the app is on but the driver has not yet accepted a ride. In that waiting period, the company’s contingent liability limits are much lower. The $1 million coverage typically applies only after a ride has been accepted or a passenger is in the vehicle.

Passengers who do not have their own No-Fault coverage may receive benefits from the policy covering the Lyft or Uber vehicle. When medical and related expenses exceed those PIP limits, the passenger may look to the rideshare company’s liability coverage and, when the law allows, a claim against an at-fault driver.

This is why it is important to contact an experienced Uber or Lyft accident lawyer as soon as possible if you or a loved one is injured in a crash.

WHO PAYS A PASSENGER’S MEDICAL EXPENSES AFTER AN UBER OR LYFT ACCIDENT?

The accident-related medical bills of injured rideshare passengers are typically covered first by the Personal Injury Protection (PIP) medical benefits on their own No-Fault policy, or a policy covering a spouse or relative in the same household.

For Uber or Lyft passengers who do not have No-Fault coverage through a household auto policy, medical bills may be paid by the No-Fault coverage on the rideshare vehicle.

WHO IS RESPONSIBLE FOR DAMAGES THAT EXCEED THE LIMITS OF THE NO-FAULT POLICY?

Under Michigan No-Fault law, reimbursement for medical bills is limited by the PIP medical level the policyholder selected. Michigan law requires transportation network companies to maintain liability insurance, commonly up to $1 million, to compensate victims for damages that can exceed No-Fault PIP medical limits.

For example, suppose a passenger has a No-Fault policy with $250,000 in PIP medical benefits. If that passenger is seriously injured while riding in a Lyft or Uber, the medical bills could exceed that amount. The victim may then seek additional recovery from the at-fault party and the rideshare company’s liability coverage for excess medical costs, wage loss beyond No-Fault limits and, when the injury threshold is met, noneconomic losses such as pain and suffering.

WHO PAYS NON-ECONOMIC DAMAGES SUCH AS PAIN AND SUFFERING AFTER A LYFT OR UBER ACCIDENT?

If an Uber or Lyft passenger is seriously injured and is less than 50 percent at fault, the at-fault driver may be responsible for noneconomic damages such as pain and suffering. That could be the Uber or Lyft driver or the driver of another vehicle.

If the Lyft or Uber driver is at fault, the passenger may file a claim against the driver’s and the company’s liability coverage.

If another driver caused the accident, the injured passenger would typically seek those damages from the at-fault driver’s liability coverage. If that driver was uninsured or underinsured, Uber or Lyft typically provides uninsured/underinsured motorist coverage of up to $1 million for injured rideshare passengers during an accepted trip.

Noneconomic recovery still depends on meeting Michigan’s serious-impairment or death threshold.

WHAT HAPPENS WHEN A PEDESTRIAN, BICYCLIST OR MOTORCYCLIST IS INJURED BY A LYFT OR UBER VEHICLE?

Medical and related expenses may be covered by PIP on the victim’s household auto policy, if they have one, or by the No-Fault coverage on the rideshare vehicle that struck them.

Victims who do not have applicable No-Fault coverage may seek benefits through the Michigan Assigned Claims Plan (MACP). Those claims generally have a $250,000 medical maximum for crashes after the 2020 No-Fault reforms.

Victims who suffered serious injuries and are less than 50 percent at fault may also file a claim against the at-fault rideshare driver and company for damages above PIP limits, including excess medical bills, lost wages and noneconomic losses such as pain and suffering.

DO I NEED AN ATTORNEY IF I AM INJURED IN A LYFT OR UBER ACCIDENT?

Yes. It is always a good idea to hire a lawyer when someone is injured in a car crash, and Uber and Lyft accident claims are especially complicated. When multiple insurance companies are involved, determining who pays can be challenging.

Rideshare insurance rules also depend on whether the app was on, a ride had been accepted, or a passenger was in the vehicle. A lawyer who handles these claims can sort out the coverage.

OUR EXPERIENCED UBER AND LYFT ACCIDENT ATTORNEYS ARE READY TO START YOUR CASE TODAY

If you or a loved one is injured in an Uber or Lyft accident, we can help. Our experienced legal team understands the complex laws that affect these cases, and we know what it takes to pursue the compensation you deserve.

Rideshare accident law is complicated, but finding the right Michigan car accident lawyer is simple.

For more information or to get your case started, fill out the brief form below or contact us for a free, no-obligation consultation.