Ridesharing services have grown extremely popular in recent years. They allow a person to be picked up for a ride to a specific destination and are good alternatives to traditional taxi cabs due to their convenience and cheaper prices. Uber, in particular, is perhaps the most popular rideshare service today.
Unfortunately, just like with any other vehicle, there may be a risk of getting into an accident while taking an Uber ride. The company claims to have a $1 million insurance plan in place to cover a number of situations in case an accident occurs. Here’s what you need to know about what this does and does not cover.
How Does Uber work?
As a rideshare service, Uber’s app and service as a whole are not subject to the same rules and regulations as other taxi companies. Drivers who work for this company are rather independent contractors versus actual employees. They make their own hours, drive their own vehicles, and choose what rides to accept.
When a passenger pays for an Uber ride, a portion of their money covers what is known as a “safe ride” fee. This covers background checks on the driver, driver safety education and ensures that the vehicle they are operating is safe. In spite of the safe ride fee, however, there is, of course, still a risk of getting into an accident while on the road.
Uber Drivers’ Employee Status
Because Uber drivers are considered independent contractors, it can be complex when a person suffers an injury while riding in an Uber vehicle. In most cases, an employer can be held liable if their employee is negligent, but this doesn’t apply to Uber’s drivers. This is why the rideshare company includes its insurance policy.
Uber’s $1 Million Insurance Policy
There are two types of coverage available through Uber’s $1 million insurance policy. Which one applies to an injured party depends on the situation at the time of the accident. The coverage includes the following:
• Driver is not available: If the driver is in the vehicle but not using the Uber app and not accepting rides, the insurance policy doesn’t apply if there is an accident. Instead, the injured party would have to go through the driver’s personal auto insurance policy.
• Driver is available without a passenger: If the driver has the app on and is on the way to pick up a passenger and has an accident that leaves someone injured, Uber’s insurance policy kicks. It includes liability coverage of $50,000 per injury, but only if the driver requests it. The policy also offers a maximum of $100,000 for injuries and $25,000 for property damage.
• Driver is available and transporting a passenger: If the driver is on duty and driving a passenger when an accident occurs that results in injury, the $1 million Uber policy applies. There is also uninsured motorist coverage included in the $1 million policy in the event the driver is in an accident caused by a driver without insurance.
If you have been injured in an accident involving an Uber driver, you need a skilled car accident attorney on your side. The attorneys at Stern Law Group have over 150 years of combined experience navigating the most complex of accident cases. Let us put our experience to work for you.
Contact our firm at (877) 661-9900 for a free consultation.