Rideshare services like Uber and Lyft have become more and more popular in the U.S., offering a convenient alternative to taxis and public transportation. However, their presence on the roads causes increased congestion and a consequent higher risk of accidents. If you have been hurt as a passenger in an Uber or Lyft car or in another vehicle involved in a rideshare accident, you have remedies for recovering compensation for your medical costs and other losses. 

Known formally as transportation network companies (TNCs), rideshare services provide on-demand transportation through online platforms. Unlike traditional livery companies, TNCs do not maintain fleets of vehicles or hire drivers. They instead rely on independent contractors who get their business through dedicated phone apps.

TNC drivers are required by Virginia law and regulations to purchase liability insurance beyond that required of noncommercial driver. This additional coverage is necessary because Virginia permits a personal auto insurance provider to exclude coverage during times that the insured person is acting as a TNC driver, unless he or she pays extra for a rideshare policy endorsement.

The additional coverage required is based on the driver’s level of activity, as follows:

• For the time between accepting a ride request and picking up the passenger, the driver must have liability coverage of at least $50,000 per person, $100,000 per accident and $25,000 for property damage. 

• Once the driver is carrying a passenger, the total coverage for bodily injury (including death) and property damage must be at least $1 million.

If an accident occurs and the driver does not have sufficient coverage, the TNC company is required to provide coverage and has a duty to defend the claim. Uber, Lyft and certain other companies voluntarily carry liability insurance for their drivers up to the limits described above.

An added complication is that fault for an accident might be shared between the TNC driver and the other vehicle’s driver. The injured person would file claims against both of them. For example, if you’re a passenger in an Uber car that collides with another vehicle, and the Uber driver is 60 percent at fault, you could recover that percentage of damages from your driver’s insurance or from Uber’s insurance. The other 40 percent would come from the other driver’s liability insurance. But if that driver’s policy is insufficient to cover that full portion of damages, you may have to seek the remainder from the Uber driver’s uninsured and underinsured UM/UIM coverage, if it exists.

The complexities of obtaining financial compensation after a rideshare accident demand having an experienced automobile injury attorney by your side. Your attorney can determine the available sources of coverage and handle the claim process effectively, negotiating the fair settlement you deserve. 

At Pikrallidas & Probasco, our knowledgeable attorneys are available to discuss your Virginia or Washington, D.C. rideshare accident. Our offices are in Fairfax, Manassas, Centreville and Front Royal. Call us at 703-267-2600 or contact us online to arrange a free consultation.