Uber Crash – Who Do You Sue ? Are You Covered ?

With the explosion of ride services outside of the traditional taxicab and hack systems, it is hard to know how to proceed when in an accident with an App dispatched vehicle through Lyft, Uber or other such company. Uber and Lyft are referred to as “Transportation Network Companies” (TNCs). They participate in the new ride-sharing industry that has developed through computer apps which let prospective riders know where the vehicles are and what the costs will be ahead of time. Unlike taxi companies, there are few statutes and oversight boards policing these new service providers. TNCs are comparatively unregulated; sometimes the laws lag behind technological advances and new applications. UberX drivers are not even required to carry commercial driver’s licenses! If you are injured in an Uber accident, however, it is likely that you will be covered by insurance.

Will My Own Personal Car Insurance Cover Me If I Am Injured while a Passenger in an Uber Vehicle ?

  As a passenger, your own personal auto insurance policy probably will not cover you in an Uber accident. This is because the accident occurred in a vehicle that was being used for commercial purposes. While it is not fun or easy, Herndon car crash lawyer Doug Landau suggests all clients actually read their own automobile policies carefully. “What the insurance companies give you with the large print, they often restrict or take away in the fine print!” he notes. Innocent passengers may have MedPay benefits available, but again checking the language of the policy is critical. Uber drivers, however, may have a much better chance of being covered under their personal automobile insurance policy.

What About Uber Car Crash Insurance?

  There is no uniform Federal law covering TNCs or any nationwide insurance requirements for TNC drivers. Although state law regarding TNC insurance currently varies from state to state, many states do require TNC companies to provide insurance coverage. Currently, it appears that Uber provides insurance that meets or exceeds the requirements of state law in states where TNCs are regulated. The Uber policy’s benefits include:

• $1 million in primary coverage per accident, excluding accidents that occur during “Period 1” (times between trips when the driver’s Uber app is still turned on). This coverage includes injuries to passengers.
• $1 million in uninsured/underinsured motorist coverage
• Collision insurance for damage to the driver’s car (subject to a $1,000 deductible)
• No fault coverage in certain locations
• Limited injury coverage between trips ($50,000 per person, $100,000 per accident and $25,000 for property damage). In at least 19 states, the bodily injury portion of this policy is now primary, meaning that it will pay even if the driver’s personal auto insurance company does not. It is not uncommon for there to be “primary,” “secondary” and even “tertiary” coverages for major crashes that cause permanent injuries and disability.
• UberBLACK, UberSUV, and uberTAXI rides are covered by commercial insurance policies.

Are There Gaps in Conventional Auto Liability Insurance Coverage for TNCs ?

  Neither Uber insurance nor most personal auto insurance policies likely will cover the following:

• Damage to an Uber driver’s car in an accident that occurred during Period 1 (if the accident was another driver’s fault, however, the other driver’s insurance might cover the damages)
• Personal injury to a driver in an accident that occurred during Period 1, if the accident was the Uber driver’s fault (i.e., if the Uber driver was the negligent party)
• Damages that exceed policy coverage limits (i.e., if there was $37,000 in damage to the vehicle, a standard Virginia $25,000 property damage policy would not cover the excess $12,000 in loss)

Can a TNC Driver Get “Period 1” Coverage ?

  It is possible for an Uber driver to procure special insurance that will cover accidents that occur during Period 1. At present, however, these options are limited. In many states, only one or two companies offer Period 1 Uber accident coverage, leading to reports of expensive quotes. “When there are only a few companies writing coverage for a particular kind of loss or limited competition in a particular insurance marketplace, the premiums for coverage are likely to be high,” notes car crash lawyer Doug Landau

Can An Injured Passenger Sue Uber ?

  Since Uber drivers are considered to be “independent contractors” rather than employees, it is next to impossible for a passenger or a third party to sue Uber itself for an accident caused by one of its drivers. Alleging that Uber negligently retained a driver with a bad driving record is one of the few reasonably promising legal avenues in this regard. In other words, once Uber or Lyft becomes aware that a particular driver is dangerous (i.e., by prior crashes, reckless driving, Traffic Court convictions, etc.), then there may be a direct action against the Transportation Network Company. If you or someone you know or care for has been injured as the result of a car, truck, bicycle or motorcycle crash with an Uber, Lyft or other APP car service, and there are questions about what laws apply, e-mail or call us at ABRAMS LANDAU, Ltd. (703-796-9555) at once.