Who Pays for Rideshare Vehicle Accidents?

Deciding who is responsible for Uber, Lyft, and other rideshare accidents has become an increasingly complicated problem. This is also a common problem as all of these applications have grown in popularity over the last few years. Many people who are involved in rideshare accidents, however, still find it essential to obtain the services of a seasoned accident attorney.

Obstacles with Rideshare Insurance

There are some particularly serious complications regarding insurance payouts after a rideshare accident. Rideshare companies often do not fully insure their drivers. These companies often claim, however, that their drivers carry insurance policies of $1 million and greater.

In a large number of cases, these insurance policies only apply to rideshare drivers after they have both been matched with a fare and carrying a passenger. Many times, if accidents occur outside of these periods, the company’s insurance policy will likely not apply to the drivers or passengers of vehicles. Even if a rideshare driver has sufficient insurance coverage, there are still obstacles that might make it difficult for an injured party to receive compensation. One potential obstacle is that many insurance companies have terms that deny claims for accidents that occur when a vehicle is used for commercial purposes.

Driver Background Checks

Rideshare drivers are banned from employment if they have been convicted of serious penalties including driving under the influence of alcohol or drugs, homicide, reckless driving, and sexual assault.

Insurance for Riders

Passengers of rideshare programs who are injured are able to receive $1.5 million in medical bills. Even if the rideshare driver’s policy has lapsed, the rideshare company will still be responsible for the resulting injuries. As a result, riders should not be afraid that if they are involved in an accident while using a rideshare that they will be left without a method to obtain compensation for their injuries.

Data Must be Disclosed to the State of New Jersey

Rideshare companies in New Jersey have entered into an agreement with the New Jersey Department of Transportation regarding the submission of data collected by the companies. In accordance with this new law, any data submitted to the department is confidential and cannot be disclosed to a third party unless written consent is provided.

Recent Reforms in New Jersey Rideshare Law

Legislatures in the state of New Jersey have recently sought to regulate private driving services. For example, the New Jersey Transportation Committee of the State Assembly recently created a proposal that would require criminal background checks as well as driving record checks for all people who use these services. In accordance with this memo, companies would also be required to pay an annual fee of approximately $25,000. Commercial rideshare vehicles would also require thorough inspections. Most importantly, rideshare companies would also be required to make sure that drivers are fully insured. A large number of people, however, believe that this legislation is not sufficient.

Obtain the Assistance of a New Jersey Accident Lawyer

If you are injured in a rideshare accident, it is often a wise idea to consult with a knowledgeable attorney. The legal counsel at Ferrara & Gable can advise you about your rights as well as work on your behalf to make sure that you receive the compensation you deserve.