Ridesharing is becoming more and more prevalent, but as it is becoming more utilized, more issues are also arising. The main issue that has yet to be determined is which party is responsible if a car accident took place. Ridesharing and insurance companies have their own policies regarding this and have been part of the ridesharing market for years, but the perpetual grey area still exists.
Coverage and Payment Responsibility
Ridesharing drivers will need to carry their own insurance and should have the specified coverage outlined in the driving contract. It’s important to know that if you get into an auto collision and the passenger is hurt, they might not be able to collect damages from your insurance for their harm.
There are several reasons why UberX is less expensive. Anyone can decide to drive for UberX any day. They aren’t commercially licensed and drive with their own vehicles.
UberX drivers may also be approved using their current personal car insurance coverage. They don’t have to obtain commercial insurance for liability coverage.
Insurance policies for ridesharing companies sound protective enough, but they actually have dangerous coverage gaps. Only certain phases of business duties are covered under rideshare insurance, and it can be risky if an accident were to occur during a period that is not covered adequately.
As an example, the time when a driver is waiting for a ride request and has the app open and running is called ‘Period 1’. Many drivers are not covered during this phase in numerous states. There are optional hybrid insurance plans that can cover this time period for drivers in certain states.
Wrongful death and personal injury lawsuits are taking place countrywide that will see how well the current policies work.
When taxicabs must purchase costly primary commercial vehicle liability insurance that runs from $5,000 to $6,000 per car, it makes it especially surprising that ridesharing companies are satisfied with the lack of coverage they’re giving drivers and passengers. These costs are being dodged to increase profits, but hopefully, more lives aren’t lost, and society as a whole doesn’t have to pay in other ways.
Legal Issues of Ridesharing Accidents
As ridesharing services continue to become more popular, accidents are inevitable. It will become necessary to determine who is responsible for a ridesharing accident.
Can a passenger sue an Uber driver? If a passenger believes the driver is at fault, they might have legal grounds to sue them. While the passenger’s insurance policy would provide compensation first, any additional expenses would have to be covered by the driver who caused the crash.
Negligence is a frequent cause of car collisions. If a rideshare driver has made any of these negligent mistakes, then they could also be responsible for your expenses associated with the accident.
- Failing to see a pedestrian in the road
- Distracted driving
- Lack of careful driving in bad weather conditions
- Failure to keep up with the vehicle’s mechanical needs or repairs
- Road rage or aggressive driving
- Driving while intoxicated or driving under the influence (DUI)
- Disregard for the city’s road laws
Rideshare drivers are obligated to sustain a duty of care for the wellbeing and safety of their passengers. Negligent drivers can be held responsible for damages.
In short, determining the legal aspects of rideshare accidents is vital for both passengers and drivers. As of right now, there is some coverage, but not enough to provide complete assurance. Other similar business models are required to purchase the type of commercial insurance that does provide assurance for passengers and drivers. Will ridesharing be able to keep up?