Lyft and Uber, the main ride-sharing apps, provide great transportation options for Chicago residents. They also offer a great opportunity for drivers to take part in the modern gig economy.
Smart phones, apps, and independent contractors driving passengers is a fairly new phenomenon. In the case of an accident, it’s logical to ask when is Lyft or Uber responsible.
The insurance process in standard car accidents can be complicated. Adding Uber or Lyft to the mix can be even more challenging to understand.
The wrinkle is that these companies legally classify their drivers as independent contractors, not employees. By doing this, they are not liable if their drivers caused an accident unless certain circumstances regarding the app are at play.
What’s the Procedure after a Chicago Car Accident?
Under Illinois law, the person or party responsible for a car accident is responsible for any damages suffered as a result of the accident. These will typically include any medical expenses, property damage and lost wages from missed work
To get compensated for damages, most people will start with filing insurance claims. A claim can be filed with your insurance company and/or the at-fault party’s insurance company. If the insurance companies don’t admit fault or fail to offer you a satisfactory settlement, you can file a lawsuit.
To work for Uber or Lyft, drivers need to have car insurance. Both companies provide insurance coverage for injuries caused by the fault of their drivers but you need to pursue a claim with the at-fault driver’s private insurance first. If the claim isn’t successful or the damages are beyond their policy limits, you can then file a claim with Uber and Lyft’s insurance.
How Does Uber and Lyft Insurance Work?
After an accident involving an Uber or a Lyft, the insurance coverage you can pursue depends on what mode the ride-sharing app was in when the accident occurred. For instance, if the driver didn’t have the Uber or Lyft app open at the time of the accident, you wouldn’t be entitled to any coverage under either company’s insurance policy.
However, if the driver had the app open but had not yet accepted a ride request, you could possibly get up to $50,000 in bodily injury liability and $100,000 in total injury liability coverage. You may also be able to recover $25,000 for any property damage.
Let’s say the driver had picked up a passenger, or was en route to pick up a passenger when the accident happened. In those cases, you could possibly recover up to $1 million in liability coverage from either company.
Call a Chicago Ride-Sharing Attorney for a Consultation
In today’s world, anything anyone could ever want or need is a mouse click or a phone tap away. Ride-sharing drivers are on the roads with loads of other drivers who are also transporting people or delivering everything under the sun to busy customers.
If you’ve been involved in an Uber or Lyft accident, it’s wise to call an experienced car accident attorney for help. They will advise you on how you should best proceed if you go forward with a claim.