Uber and Lyft Accidents Involving Uninsured Drivers: Who Pays?
Rideshare companies like Uber and Lyft have revolutionized transportation, making it easier than ever to get from one place to another with just the touch of a button. However, accidents involving rideshare drivers add a unique layer of complexity to personal injury and insurance claims, especially when the driver or another party is uninsured.
If you’ve been injured in an accident involving an Uber or Lyft driver in Texas, understanding your rights and who is responsible for covering the damages is essential.
At Jose Orihuela, Attorney at Law, in Houston, Texas, I have worked with numerous clients facing rideshare accident claims. Here, I’ll break down the key considerations for Uber and Lyft accidents involving uninsured drivers, addressing insurance options in Texas, how liability is determined, and who typically pays after these types of rideshare accidents.
Insurance Options in Texas for Rideshare Accidents
Texas law requires all drivers to carry minimum auto insurance coverage, which includes $30,000 in liability coverage for bodily injury per person, $60,000 per accident, and $25,000 in property damage per accident. For rideshare drivers, additional insurance usually comes into play because of their status as commercial drivers.
Both Uber and Lyft provide liability coverage for their drivers, but the level of protection depends on the driver’s status at the time of the accident. Here’s how it breaks down:
Driver is offline or the app is off: During this time, the rideshare company’s insurance does not apply. If an accident occurs, the driver’s personal insurance is solely responsible for any damages caused.
Driver is online and waiting for a ride request: Uber and Lyft provide contingent liability coverage, which means if the driver’s personal insurance won’t cover the damages, the rideshare company offers up to $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $25,000 for property damage.
Driver is en route to pick up a passenger or during a paid trip: When a ride is actively in progress, both companies provide a $1 million liability insurance policy. This also includes uninsured/underinsured motorist (UM/UIM) coverage, which is essential if the at-fault driver does not have insurance or doesn’t have enough to cover the damages.
Understanding these coverage levels is crucial because they determine where compensation might come from after an accident. If a rideshare driver is uninsured or underinsured, the rideshare company’s policies may step in to provide additional coverage depending on the driver's work status.
Determining Liability After an Uber or Lyft Accident
Liability in rideshare accidents depends on several factors, including who was at fault and the driver’s status on the app at the time of the crash. Texas is a fault-based state, meaning the person responsible for causing the accident is also the one liable for damages. However, establishing liability in rideshare accidents can be tricky for a few reasons.
First, rideshare companies like Uber and Lyft classify their drivers as independent contractors rather than employees. This designation can complicate matters when a claim arises because the companies may deny direct responsibility for the driver's actions. However, under Texas law and the companies' insurance policies, victims often still have legal options to pursue compensation.
Second, you’ll need evidence to establish fault in the accident. This may include police reports, witness statements, dashcam footage, and other critical documentation. Texas also follows a comparative fault rule, meaning that if you’re found partially responsible for the accident, your compensation could be reduced based on your percentage of fault.
For example, if you’re deemed 20% at fault, your settlement could be reduced by that percentage. Due to these challenges, it’s important to consult with legal representation to help establish liability and evaluate all available insurance options to cover your damages.
Who Pays After a Rideshare Accident?
When an Uber or Lyft accident involves an uninsured driver, it’s natural to wonder who ultimately pays for damages. Here’s how it typically works in Texas under different scenarios:
The At-Fault Party Has No Insurance
If the accident was caused by an uninsured party and the rideshare driver was "on the app" (waiting for a ride request, en route to a passenger, or completing a trip), Uber or Lyft’s uninsured/underinsured motorist (UM/UIM) coverage generally applies. This coverage is included in their $1 million liability insurance policy during a ride or passenger trip.
However, if the rideshare driver was offline or not actively engaged in rideshare activities, then their personal UM/UIM policy—if they have one—might cover the damages. Unfortunately, if neither option is available and the at-fault party is uninsured, recovering damages will often be more challenging.
The Rideshare Driver Is at Fault, But Uninsured
If the rideshare driver is at fault and uninsured, the level of compensation depends on their app status. If they were actively using the rideshare app (such as waiting for a ride request), Uber or Lyft’s contingent liability insurance will generally apply to cover damages. If they were offline, the responsibility falls entirely on the driver’s personal insurance.
The Rideshare Company Denies the Claim
Rideshare companies are quick to argue against liability whenever possible. If you’re injured as a passenger or another party in a rideshare accident, the process can become even more complicated when dealing with denials or delays. This is where an experienced rideshare attorney can help. Their job is to hold all responsible parties accountable, whether that’s the rideshare company, their insurance carrier, or another driver involved in the accident.
The Importance of Legal Representation
Navigating the aftermath of a rideshare accident involving uninsured drivers is stressful. Between complex insurance policies, disputes over liability, and state regulations, it’s easy to feel overwhelmed. That’s why hiring an experienced attorney is crucial. They can help you determine the at-fault party, evaluate your damages, and identify available coverage options to pursue the compensation you deserve.
At the end of the day, the goal of working with an attorney is to take the guesswork out of your claim and advocate on your behalf. If you're dealing with injuries after an Uber or Lyft accident involving an uninsured driver here in Houston, Texas, or the surrounding areas, contact an experienced personal injury attorney who can help you hold the responsible parties accountable and pursue the resolution you need to move forward.
Contact an Experienced Rideshare Attorney Today
If you or someone you know has been injured in a rideshare accident, you don't have to handle the aftermath alone. At Jose Oriheula, Attorney at Law, I am experienced in helping my clients pursue compensation for injuries or damages they sustained due to someone else's negligence.
With offices in Houston and Webster, Texas, I serve clients throughout South Houston, Pasadena, Clear Lake, Friendswood, League City, Alvin, Dickinson, Bacliff, Kemah, Seabrook, and Santa Fe. Contact me today to schedule a consultation and take the first step toward resolving your rideshare accident claim.