In just a few years, Uber and Lyft have become household names in the Chicago area, fundamentally changing how people move around.
It’s important to remember that these drivers are not professional chauffeurs; they are individuals who meet the ride-sharing companies’ requirements, own their cars, and are available to provide rides for app users.
A few years ago, at least 67,000 people were driving for Uber and Lyft in Chicago. The total number of drivers has only risen, and they are a significant presence on our roads.
As these vehicles increasingly fill our streets, liability issues invariably surface when they are involved in accidents. Recent studies highlight the potential for increased risk; research out of the University of Illinois Chicago (UIC) found that one-third of rideshare drivers surveyed have been involved in a car crash while working. One University of Chicago study linked the prevalence of rideshare services to a 3% annual increase in vehicular deaths, accounting for approximately 987 roadway fatalities each year.
If you are injured in an accident with a Lyft or Uber, you must understand who may be held liable for any injuries you suffer. Navigating complex insurance policies and determining fault requires specialized legal insight.
9 Ride Sharing Safety Tips Everyone Needs to Know
1. Request your ride before you go outside.
Avoid spending unnecessary time alone with your phone in hand. It invites potential trouble. Track your driver and go outside upon arrival.
2. Check the driver’s rating before confirming a pickup.
3. Don’t share your phone number or contact information with your driver.
There’s no harm in exchanging pleasantries with your driver, but avoid sharing anything personal. Protect your personal information.
4. Verify the vehicle’s make, license plate, and driver’s name before entering the car.
Ask the driver, “Who are you here for?”
Fake ride-sharing drivers hang around busy nightclubs, restaurants, and other areas where it’s easy to get confused with all the congestion.
5. Always ride in the back seat and use your seatbelt.
6. Track your ride.
Implement the “ride tracking” function so another person can follow your travel route and know when you arrive at your destination.
If your ride service doesn’t offer such a function, take a photo of the vehicle’s license plate and text it to a friend.
7. Know your surroundings.
Open your “maps” tool and follow along, noting any odd route shifts.
8. Speak up if something feels off.
If something doesn’t feel right, tell the driver to stop, leave the vehicle, and go to the nearest place of business or public area. If you cannot exit the car, dialing 911 is always an option.
9. Report any unsafe driving on the ride-sharing app immediately.
Although no one can guarantee complete safety, using these tips will help you breathe easier the next time you end up in a rideshare vehicle.
The Liability Gap
Understanding liability in a rideshare accident is further complicated by the phased nature of insurance coverage.
While Uber and Lyft mandate that all their independent drivers carry personal auto liability insurance, this coverage primarily applies when the rideshare app is OFF.
The moment a driver logs into the Uber or Lyft app, signaling their availability for rides, a lower level of contingent liability insurance from the rideshare company typically becomes active.
This is often referred to as “Period 1” coverage. It’s designed to provide a safety net if a driver’s policy denies coverage because they were operating for commercial purposes, even if they haven’t yet accepted a fare.
The most robust coverage from the rideshare company—often $1 million in liability—only “kicks in” once a driver has accepted a trip and is en route to pick up a rider, and remains active until the passenger exits the vehicle.
This is “Period 2 and 3” coverage. This disparity in coverage creates a crucial “coverage gap,” where the amount of insurance available can change dramatically depending on the driver’s exact status at the moment of an accident.
This fluctuating and layered coverage structure is a significant source of complexity in rideshare accident claims.
Is Uber or Lyft Liable in an Accident?
Determining liability after a collision with an Uber or Lyft driver is often far more complex than a traditional car accident.
It hinges critically on the driver’s activity at the time of the incident, as regulated by the Illinois Transportation Network Providers Act (625 ILCS 57/).
While both Uber and Lyft provide substantial insurance coverage, particularly up to $1 million in liability coverage when a driver has accepted a ride request and is en route to or transporting a passenger (Periods 2 & 3), the situation is less clear in other scenarios.
When a driver is logged into the app but has not yet accepted a ride (Period 1), the rideshare company’s contingent coverage is significantly lower, typically $50,000 per person for bodily injury, $100,000 per incident, and $25,000 for property damage.
If the app is off, only the driver’s auto insurance applies, which may very well exclude commercial activity. This multi-layered and sometimes conflicting coverage presents a nuanced legal challenge in identifying the responsible party.
Therefore, potentially liable parties in a rideshare accident may include:
- The rideshare company (Uber or Lyft): Their commercial liability policies are crucial, especially during active trips.
- The driver’s personal automobile insurance policy: This is primary when the app is off, but can be contested if the insurer learns of commercial use.
- The driver’s supplemental rideshare policy (if they carry one): Some drivers opt for additional coverage to bridge gaps in personal and company policies.
- The automobile liability insurance policies of other drivers involved in the crash: If another vehicle was at fault, their insurance would also be a source of recovery.
Adding to this complexity are the arbitration clauses often found in Uber and Lyft’s terms of service.
Illinois courts generally uphold these clauses, which can mandate that disputes, including personal injury claims, be resolved through private arbitration rather than traditional litigation.
Injuries from these accidents can be severe and life-altering, and navigating the intricate web of insurance policies, driver classifications, and arbitration agreements requires specialized legal knowledge.
In Illinois, the statute of limitations for most personal injury claims arising from car accidents is two years from the date of the incident, underscoring the importance of prompt action.
Involved in a Rideshare Accident? Call FLT Law today.
When you’re injured in a rideshare accident, contact an attorney you can trust right away.
The team at FLT Law will thoroughly investigate the accident, gain a comprehensive understanding of the facts, and learn the impact the accident has had on you and your family.
We will advise you on compensation expectations and represent you to ensure you receive the compensation you deserve.
Contact FLT Law today to schedule your free consultation.
