With the widespread rise of ride sharing services, the most popular being Uber, accidents occurring either while you are a passenger in an Uber or accidents that occur with Uber operators while you’re driving a separate vehicle are essentially a guarantee – it’s simply a matter of who gets involved and when. In either case, the legal framework of dealing with insurance may be more complex than traditional accidents, so having the advice from an expert personal attorney at Altman & Altman LLP is always a good idea.
Insurance implications as a passenger in an Uber
Driving as a passenger with Uber has several possible implications. While Uber has advertised its $1 million insurance policy as a means to make drivers comfortable with the idea that they are covered for any potential injuries that may occur if their Uber drivers get into an accident, this is not always the case.
There are different tiers, or categories, associated with Uber’s coverage of its drivers. If a driver is actively working as an Uber driver and is carrying a passenger at the time of an accident, the $1 million Uber policy is in play – however, this does not mean that Uber is compelled to pay out claims for that accident.
This is because Uber does not consider its drivers to be employees, but rather they are classified as independent contractors. As a result, if they feel as though the driver was at fault for the accident in any way, they may deny a claim against their insurance policy. The result, then, could be that the driver’s own personal insurance policy is left as the only recourse – which may be insufficient for the degree of injury you sustain. If this is the case, you have a right to sue Uber and make a claim to be compensated by their insurance provider.
Insurance implications if involved in an accident with an Uber driver
If you are a separate motorist and you get into an accident with an Uber driver, there are different implications based on the situation. First, if the Uber driver was not actively seeking rides, Uber’s insurance policy is not subject to the claims, rather the driver’s personal insurance policy is.
If the Uber driver is on the way to pick up a passenger when they get into an accident, the driver’s personal policy is once again the primary policy. However, Uber does have some liability coverage in these situations, up to $50,000 per injury with a maximum of $100,000 and up to $25,000 for property damage.
If you get into an accident with an Uber driver carrying a passenger, Uber’s $1 million insurance policy comes into play. However, as stated above, Uber can deny paying out a claim for a variety of reasons, including if the Uber driver was found to be at clear fault for the incident. In these cases, the driver’s personal insurance will be leaned on to pay out a claim.
If the Uber driver’s personal insurance policy is utilized to pay out a claim, this may also be problematic, since many insurance carriers prohibit policyholders from utilizing their vehicles as ride sharing vehicles. This may limit the amount you can collect in a claim, and leave you with no other choice but to sue Uber to try and gain financial compensation to pay for your medical expenses and damage to your property. Continue reading