The transportation industry has evolved as a result of the rise of Uber and other rideshare platforms in the United States. This is due to the convenience and affordability it offers to its millions of users.
With the huge reliance on Uber comes a growing number of accidents that involve its drivers. Uber accidents usually have multiple layers of legal and insurance complications. This leads to the complex legal questions that are often raised about liability and compensation.
If you or a loved one has been involved in an Uber accident, then it’s important to hire a local Uber accident lawyer to help you get the compensation that you deserve.
The Complexity of Uber’s Business Model
One of the primary challenges in proving the liability of an Uber accident has to do with the unique business model of the company. It was specifically designed to protect the company from any form of direct deposit liability.
Note that Uber operates as a technology platform rather than a transportation company and, as such, labels their drivers as independent contractors.
Since the company does not technically employ its drivers, it’s usually difficult for accident victims to hold the company responsible, and might not be able to claim compensation from them as they must prove that the company was negligent in a way that contributed to the accident. And here’s why:
Uber avoids direct liability for its drivers’ actions, thus shifting responsibility to the driver involved as well as their personal insurance policy. This allows Uber to deny its employer-employee obligations, including providing workers’ compensation, health benefits, or automatic liability coverage in case of an accident.
Uber also claims that it is an intermediary company that merely provides a digital platform connecting riders and drivers hence, it cannot be held liable for negligence.
This has made it a very difficult feat for plaintiffs to win a lawsuit against Uber, thereby placing the burden of proof on accident victims.
Multiple Parties Involved in an Uber Accident
Another big challenge involved in proving liability in an Uber accident case is when multiple parties are involved in the crash. The potentially liable parties are:
- The Uber driver
- Uber
- Other drivers involved
- Passengers, pedestrians, or cyclists
Unlike traditional car accidents, where fault is often assigned to one or two drivers, in the case of Uber-related accidents, it requires determining responsibility among individuals involved. And it’s possible for each individual to have their own insurance policy, legal defense, or version of events. They might even shift the blame on each other, making it difficult for victims to get fair compensation.
Uber’s Insurance Policies and Coverage Gaps
Uber’s insurance coverage is structured into three distinct tiers, and each of them applies under different circumstances. They are:
Driver Offline (Not Using the Uber App)
If the Uber driver is not logged into the app at the time of the accident. Then the driver’s personal auto insurance is solely responsible for any damages, as Uber provides no coverage for such. Victims of the crash can only file claims against the driver’s private insurance. And most times it may have coverage limitations for commercial activity.
Driver Available (Logged into the App but No Ride Accepted)
If the driver is online and waiting for a ride request, Uber provides limited third-party liability coverage, such as $50,000 per person for bodily injury, $100,000 per accident for bodily injury, $25,000 for property damage. Note that this applies only if the driver’s personal insurance denies the claim or provides insufficient coverage. Victims of this crash may face difficulties proving that the driver was in this phase, especially if the driver denies being active on the app.
Driver Engaged (Accepted a Ride or Transporting a Passenger)
Once a driver has accepted a ride and is either en route to pick up a passenger or actively transporting one, Uber provides its full insurance coverage, such as $1 million in third-party liability coverage, uninsured motorist coverage (varies based on state), contingent collision, and comprehensive coverage if the driver has personal collision coverage.
Even though this coverage is more substantial, Uber’s insurance company may still attempt to limit payouts by disputing fault or the extent of damages.
