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Who’s Responsible if I’m Injured in an Accident in a Rideshare Vehicle?
Rideshares are the taxis of the 21st century. While once upon a time, yellow cabs were ubiquitous in cities across America, today, people ride in vehicles of every sort on their way to and from home, work, and social events. Pre-pandemic, over one-third of Americans were rideshare users, a number that has only risen in recent years. As of 2024, rideshare services represent a $53.8 billion industry. That number is expected to rise to $60 billion by 2029.
The more people use rideshares, the higher their likelihood of getting into a traffic accident while riding in one. Because the concept of rideshares is relatively new, many people are unsure of their rights and options if they are in an accident while riding in one. That’s why if you or a loved one have been in an accident while in a rideshare vehicle, you must contact an experienced personal injury attorney.
What are the Laws Concerning Rideshare Drivers and Vehicles in California?
Some people may have a stereotype of rideshare companies hiring anyone they please and potentially placing riders in danger. This is not true in the state of California. California has strict laws regulating rideshare companies’ operation and hiring practices. To be able to drive for a rideshare company in California, drivers and their vehicles must pass a series of tests and meet several requirements. These tests and requirements include but are not necessarily limited to:
- Possessing a Valid California Driver’s License
- Passing a Criminal Background Check
- Keeping Vehicle Inspections Up-to-Date
In addition, rideshare companies must carry commercial insurance. This means companies like Uber and Lyft must provide vehicle insurance in the event of an accident. Unlike standard insurance, the commercial insurance carried by rideshare companies on their vehicles changes depending on various factors. This is because rideshare drivers are considered independent contractors under California law. This means they are not regarded as employees of the rideshare company. Per the IRS, while independent contractors provide goods or services to a company on a contract basis, they are generally considered self-employed. This can make navigating the aftermath of an accident involving a rideshare driver challenging.
What are the Laws Concerning Rideshare Insurance in California?
Usually, when a driver has insurance, coverage remains the same regardless of whether someone is driving to work, taking their children to school, going to the grocery store, or just out for a drive. The same is not true for rideshare vehicles in California. This is because of the unique position drivers and their cars occupy.
Taxi drivers do not usually use their cabs for personal reasons. If a taxi driver is behind the wheel of a cab, that generally means they are on the job. The same is not necessarily true for a rideshare driver. Because rideshare drivers use their own cars, they may or may not be “on the clock.” An individual must turn on the app in order to be considered actively working in their capacity as a rideshare driver. If someone is driving a car they use for ridesharing but do not have the app on, insurance policies from businesses like Uber and Lyft do not apply.
Insurance coverage also changes depending on whether the driver has an active fare. If a driver has the app turned on and is either looking for a fare or en route to pick one up, they have limited liability coverage. The coverage amount may vary but is generally $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $25,000 for property damage. If a driver has an active fare in their car at the time of an accident, this coverage raises up to $1 million in third-party liability insurance.
Who is Financially Responsible if I’m Injured in a Rideshare Accident in California?
Who may be financially responsible for your injuries can vary according to various factors. This includes who was at fault. If you were a passenger in a rideshare, and another driver was at fault for the accident, you may be able to pursue a claim against the other driver and their insurance company. If your driver was at fault, your options change. You may be able to collect compensation from the rideshare company’s insurance.
If the amount of money offered isn’t satisfactory, you may be limited in what legal avenues you pursue. This is because of the terms of service (TOS) you agreed to when using the rideshare app. Most rideshare TOS contain an arbitration agreement. This means that by agreeing to most rideshare TOS, you waive the right to a trial if you wish to take legal action against the company. Instead, any claims must be solved through arbitration. This is a process in which a neutral third party negotiates an agreement between you and the rideshare company.
If your driver caused the accident, you may also be able to take legal action against them. This varies on a case-by-case basis. This is why if you or a loved one were injured in a rideshare accident, you must contact an experienced personal injury attorney.
What Should I Do if I’m Injured in a Rideshare Accident in California?
Most people will be involved in at least one car accident in their lives. The majority of people know what to do in the event of a “normal” accident, such as taking pictures and exchanging insurance information. Rideshare accidents represent a new and often challenging area of the law. Who is responsible, who can and cannot be sued, and how you collect compensation for your injuries can vary according to multiple factors. This is why if you or a loved one have been injured in a rideshare accident, you shouldn’t hesitate to contact an experienced personal injury lawyer, such as Troy Skinner at Skinner Law Corp. As a younger, tech-savvy attorney, Troy Skinner is on the cutting edge of the law related to apps, digital technology, and how they impact our lives. He can examine every aspect of an accident involving a rideshare driver and determine who was at fault, who may be financially responsible, and how to collect from them. A native of the South Bronx, Troy Skinner believes in tenacity, hard work, and mental toughness, qualities he brings to every one of his cases.
Ridesharing has revolutionized how Americans travel for work and leisure. It’s also complicated how we deal with car accidents. If you or a loved one were injured in a car accident involving a rideshare driver, don’t hesitate to call Skinner Law Corp at 310-356-0074. Let Troy Skinner take care of your case so you can care for yourself.
