Your Right to Damages if You’re Injured in a Rideshare Accident

If you are in an accident as a passenger in an Uber or Lyft vehicle, or as a driver or passenger of another vehicle, you have various legal recourses to obtain compensation for your injuries. Insurance claims for rideshare accidents can be complex because multiple parties may be involved, including the rideshare driver, the other driver and the rideshare company itself. You need to understand your rights and the applicable insurance coverages in order to secure the compensation you need and deserve.

Under New York's no-fault law, if you're a passenger in a rideshare vehicle, or a driver or passenger of another vehicle involved in the crash, your own insurance company is responsible for covering your medical expenses, lost wages and certain other costs up to a set amount. However, if your injuries are serious, New York law allows you to pursue a claim for additional compensation by proving that the other driver was at fault. 

Rideshare drivers, such as those working for Uber or Lyft, are classified as independent contractors rather than employees of the rideshare company. As a result, the transportation network company (TNC) is typically not vicariously liable for accidents caused by the driver. This distinction is important because it means that the TNC itself is not automatically responsible for damages resulting from an accident involving one of their drivers. Instead, compensation must generally come from the driver's insurance coverage or the TNC's liability insurance, depending on the driver's status at the time of the accident.

New York’s Vehicle & Traffic Law § 1693 establishes specific insurance requirements for TNCs to provide for drivers, which vary depending on the driver’s working status. They fall into these categories:

1. Offline (not using the app) — When a rideshare driver is offline and not using the app, they are required to have their own personal auto insurance policy. The rideshare company’s insurance does not apply in this case, as the driver is not engaged in rideshare activity. This is similar to the insurance requirements for any private driver.

2. Online (using the app but waiting for a ride request) — If the driver is logged into the rideshare app but has not yet accepted a trip, the rideshare company provides liability insurance that covers $50,000 for bodily injury per person, $100,000 for bodily injury per accident and $25,000 for property damage. 

3. En route or with a passenger (active trip) — Once the driver accepts a ride request or has a passenger in the car, the rideshare company is required to provide much higher levels of coverage: $1,250,000 in liability coverage for injuries, property damage, or death caused by the driver. This coverage includes uninsured motorist protection (UM/UIM), which can help if the other party involved in the accident lacks insurance.

Although rideshare drivers carry their own personal auto insurance, some policies exclude coverage when a vehicle is used for commercial purposes. However, the driver may have obtained a specific rider to extend coverage for rideshare activities.

In some instances, fault for an accident is shared between the rideshare driver and another party. If this occurs, the injured party may need to file claims with both the rideshare driver's insurer and the other driver’s insurance company. In such cases, damages are apportioned according to the percentage of fault. An experienced automobile injury attorney can help identify the various sources of coverage and negotiate a fair settlement, ensuring that all available avenues for compensation are pursued effectively.

Rich & Rich, P.C. represents New Yorkers who have been injured in rideshare vehicle accidents. We have offices in midtown Manhattan and in Roslyn Heights, N.Y. To schedule a free consultation regarding your case, please call 917-746-3358 or contact us online.