Rideshare services, such as Uber and Lyft, are a convenient and easy way to travel and commute from place to place. However, rideshare vehicles also present unique challenges if you are injured during an accident involving one of the company’s drivers, such as a passenger, pedestrian, or other driver. 

Until recently, rideshare companies in New Jersey were only required to carry minimal insurance coverage for the driver. While new laws better protect consumers, Uber and Lyft’s tiered insurance structure can cause significant challenges in determining liability and whether you are fully covered following an accident. 

Why Is Proving Liability More Difficult in Rideshare Accidents?

When you are injured in a car accident involving an Uber or Lyft vehicle, proving fault is rarely simple. Rideshare accidents introduce additional complexities typically not present in standard car accidents, such as:

• The driver is an independent contractor. Uber and Lyft classify their drivers as independent contractors, which makes it harder to hold the companies responsible for the drivers’ actions.
• Multiple insurance policies. Depending on the driver’s status in the app, insurance coverage for injuries caused by an accident could come from the driver’s personal insurance, the rideshare company’s, or both, leading to disputes between carriers over who pays.
• Rideshare companies control evidence. Information such as the driver’s app status, trip details, and communication logs is stored by Uber or Lyft and is not immediately available.
• Coverage depends on timing. Whether the driver had the app on, accepted a ride, or was actively transporting a passenger affects the level of coverage available.
• Conflicting accounts and data gaps. The driver, passengers, and other parties may offer conflicting statements, and the rideshare company may delay or deny requests for digital evidence needed to clarify what happened.
• Third-party involvement. Accidents may involve other vehicles, commercial trucks, or road hazards. 

How Does Insurance Work in Rideshare Accidents?

Rideshare companies provide commercial insurance coverage for their drivers, but it only applies under certain conditions, based on the driver’s status in the app at the time of the accident, as follows:

• App off. If the rideshare app is not active, Uber and Lyft offer no coverage, and the driver’s personal auto insurance applies. 
• App on, waiting for a request. If the driver is logged into the app but has not accepted a trip, limited liability coverage from the rideshare company may be available. In New Jersey, this typically includes up to $50,000 per person and $100,000 per accident bodily injury coverage.
• Ride accepted or passenger on board. Once a trip has been accepted or a passenger is in the vehicle, full commercial coverage kicks in, which generally includes up to $1 million in liability coverage, along with contingent comprehensive and collision coverage.

New Jersey laws require companies such as Uber and Lyft to carry specific insurance coverage for their drivers, including $1.5 million in liability coverage while transporting passengers. The state also enforces that companies perform mandatory background checks and disqualifications for certain prior offenses.

One of the most difficult parts of a rideshare injury claim is proving exactly what the driver was doing at the time of the crash. Uber and Lyft rarely offer this information willingly, and your South Jersey car accident lawyer may need to obtain it through formal legal channels.

Why Is the Uber or Lyft Driver’s Employment Status Important?

Uber and Lyft classify their drivers as independent contractors rather than employees, which is a significant legal distinction. If the driver is an employee, the company would usually be liable for the driver’s negligence in an accident.

However, if the driver is an independent contractor, the company may avoid legal responsibility for accidents. Even if the Uber or Lyft driver is clearly at fault for the accident, the company may argue it is not legally responsible due to the driver’s status as an independent contractor. This employment classification becomes a central issue in many rideshare injury claims. In order to determine whether Uber or Lyft is liable for an accident, courts consider factors such as:

• Whether the driver was logged into the app at the time of the accident.
• Whether the driver was en route to pick up a passenger or actively transporting one.
• Whether Uber or Lyft had prior knowledge of the driver’s poor driving record.
• Whether the company exercised control over how the driver operated.
• Whether the company set specific performance standards or monitored driver behavior through the app.
• Whether the rideshare platform encouraged unsafe driving practices, such as incentives for completing more rides in less time.
• Whether the company retained the right to terminate the driver for policy violations or performance issues.

Each of these factors can influence whether the rideshare company itself can be held accountable or whether the driver is solely responsible. 

Who Can Be Liable for Rideshare Accidents?

Determining liability in an Uber or Lyft accident often involves multiple parties, and understanding who may be responsible is essential. Potential liable parties include:

• Uber or Lyft driver. If the driver was distracted, speeding, failed to yield, or took other negligent actions, they may be directly responsible for the crash. 
• Uber or Lyft. Rideshare companies can be liable if they deny fault based on claims of being strictly app platforms but are found to have failed to perform background checks or enforce safety policies.  
• Another motorist. If another driver caused the accident, they may share liability.
• Another company. If the crash involved a delivery truck, bus, or other commercial vehicle, the company that owns or operates it could be liable.
• Government entity. If dangerous or poorly maintained road conditions led to the crash, a local or state agency may be partially responsible.
• Vehicle manufacturer. If a vehicle defect, such as faulty brakes or airbags, contributed to the accident, the manufacturer or distributor may be liable.

What Should I Do If I Am in an Uber or Lyft Accident in South Jersey?

If you are injured in an Uber or Lyft accident as a passenger, pedestrian, or another driver, it is important to protect yourself by taking the following steps:

• Call the police to report the accident.
• Report the accident to Uber or Lyft through the app.
• Gather the driver’s name, company, and insurance information.
• Photograph the scene, vehicle damage, and injuries.
• Gather contact information and statements from witnesses.
• Seek medical attention as soon as possible, even if you believe your injuries are minor.
• Keep all records related to the crash.
• Contact an experienced South Jersey Uber and Lyft accident lawyer to protect your rights and discuss your legal options.

Injured in a Rideshare? Contact the South Jersey Uber and Lyft Accident Lawyers at Kitrick, McWeeney & Wells, LLC TodayUsing rideshare apps such as Uber or Lyft is an easy and fun way to get around, but if you are injured during a crash in one, seeking compensation can be challenging. If you have suffered injuries in a rideshare accident, the experienced South Jersey Uber and Lyft accident lawyers at Kitrick, McWeeney & Wells, LLC can help. Call 732-920-8383 or contact us online to schedule a free consultation. Located in Manasquan and Brick, New Jersey, we serve clients across the state.