Rideshare services have become popular throughout the United States, replacing traditional taxi services in many areas. Because rideshare drivers drive their own vehicles it may not be clear to passengers whether the rideshare company or the driver is responsible for damages caused in an accident.
Who is liable for damages when a rideshare driver is at fault for an accident depends on what the driver was doing at the time.
Driver not logged on the app
If the driver is not logged on the rideshare app and actively accepting rides, the driver is responsible for any damages in an accident.
Driver is waiting for a ride request
When drivers cause an accident after they log into the app to wait for a ride request, some rideshare companies provide a limited amount of coverage while others only provide coverage over the driver’s personal liability limits. In many cases, the driver’s personal auto policy may exclude coverage for commercial use of the vehicle.
Driver is transporting or picking up a passenger
If the driver causes an accident while transporting a passenger or driving to a destination to pick up a passenger, the rideshare company is liable for any damages.
Whether you are a passenger in a rideshare vehicle or the driver or passenger of a vehicle struck by a rideshare driver, it is essential to establish who is responsible for your damages. In many cases, if the rideshare driver does not have a commercial policy, the driver will have no coverage for accidents that happen while the driver is using the vehicle for commercial purposes. In these cases, injured parties must either use their own insurance or pursue a claim through the rideshare company.
