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Comparing liability in accidents: Rideshare vs. traditional taxi

On Behalf of | Oct 9, 2024 | Motor Vehicle Accidents

Rideshare services like Uber and Lyft have become incredibly popular in today’s fast-paced world. They offer convenient transportation at the tap of a button. However, they also come with unique legal challenges, mainly when accidents occur.

If you have ever wondered what to do if you are injured in a rideshare accident versus a traditional taxi accident, it is important to understand the differences in liability. Knowing these differences can reduce stress and confusion, helping you protect your rights and get the compensation you deserve.

Rideshare drivers: Independent contractors with complex insurance

Rideshare drivers operate as independent contractors. This distinction has significant implications for liability in the event of an accident. Drivers carry their own personal auto insurance; however, this insurance often does not cover accidents that occur while the driver is engaged in rideshare activities.

To bridge this gap, companies like Uber and Lyft provide up to $1 million in liability coverage for accidents while the driver is on the way to pick up passengers or during the ride itself. This coverage steps in if the driver’s personal insurance fails to cover the accident. If you determine that the rideshare driver is at fault, you can file a claim against their personal insurance or the company’s insurance. Conversely, if another driver is at fault, you can file a claim against that driver’s insurance.

Traditional taxi drivers: Simplified liability through employer insurance

On the other hand, traditional taxi drivers are generally employees of a taxi company, which simplifies the liability process. Taxi companies typically hold comprehensive commercial insurance policies that cover accidents involving their vehicles. This means that if a taxi accident injures you, you can directly file a claim with the taxi company’s insurer. If the taxi driver is at fault, the taxi company’s insurance will cover your damages. If another driver is responsible for the accident, you can file a claim against that driver’s insurance.

Taking action after an accident

Regardless of whether you are in a rideshare vehicle or a traditional taxi, the aftermath of an accident can be challenging. It is essential to gather evidence at the scene, such as photos and witness statements, and to seek medical attention immediately. Consulting with a personal injury lawyer can help you understand the complexities of your case, increasing the likelihood that you receive the compensation you deserve.