Millions of people use ridesharing services every year and unfortunately, a small percentage of them will be involved in an accident. As an injured passenger in one of these collisions, you may be wondering whose insurance will pay your damages: the rideshare's or the driver's? It depends on a few factors. Here's what you need to know.
Rideshare is Only Liable When the App is in Use
Rideshares have third-party insurance that covers drivers and passengers in the event of an accident. However, the coverage is only active when the driver is logged into the app and is waiting for a request, on the way to pick up a passenger, or in the process of transporting a passenger to their destination.
While drivers are covered from start to finish, passengers can only make claims on the rideshare's insurance if they were using the app for the ride and in the vehicle at the time the collision occurred. Outside of that, you would have to file a claim against the driver's personal insurance to get your damages paid.
For example, you use the app to get a ride to the pharmacy. You ask the driver to wait five minutes and then pay them $20 cash to take you back to your house. The rideshare's third-party policy would only be active during the first leg of the trip when you used the app. The second leg of the trip booked without the app would be classified as the driver using his or her personal time to transport you and would not qualify for coverage.
Of course, there are some gray areas where it will not be immediately clear who is liable for paying damages. For instance, if a trip is canceled midway but the driver gets into an accident before you can safely exit the vehicle, it's uncertain if the rideshare will still pay. It is essential you contact an attorney who can review the facts and help you determine who to go after for compensation.
No Double Dipping Allowed
Although the driver will be covered by the rideshare's third-party insurance, they are still required to carry their own policy because of state laws and the rideshare's driver requirements. In the case of an accident, you can file a claim with either the rideshare's insurance or the driver's, but you can't do both as this would be considered double dipping or getting paid twice for the same thing.
In most cases, you will want to file a claim against the rideshare because they will typically have higher policy limits, which is important if you suffer significant injuries that require long-term or expensive treatment. However, there may be instances when it's better to file a claim against the driver. Discuss your options with an attorney who can advise you on which one is more likely to meet your compensation needs.
For more information, contact a rideshare accident attorney near you.