Here are 3 common myths about Uber accidents and how these claims are handled.
More and more people are using ride-sharing services in the US, with Uber being the market leader. Accidents involving Uber drivers are bound to happen since there are so many of them on the streets, but who covers the damages and what happens if you’re a victim are still unclear for many people.
Here are 3 common myths about Uber accidents and how these claims are handled.
Uber’s $1 million Insurance Will Always Get You a Huge Settlement
In its beginnings, Uber was not liable for accidents caused by its drivers because it claimed that they were independent workers, not employees per se. However, state legislation has changed in the meantime, and Uber now carries a $1 million insurance policy for every driver. This, however, doesn’t mean that the victims will always receive a huge settlement from the company or that they will be covered by it at all.
Uber’s insurance is a secondary policy, and the primary responsibility lies with the driver. Damages are generally covered by Uber only if the driver has an active ride in the app at the time of the accident. If an Uber driver causes an accident while circling, waiting for a client to search for a car, or even driving towards a client, the $1 million policy will generally not cover them. In fact, Uber drivers are more at risk in case of an accident because they might lose their personal auto insurance coverage if their insurance company decides that they were using the car for something other than personal use.
The Company Is Always Liable If You’re Hit by an Uber
As stated above, Uber’s policy will typically only cover the damages caused by an Uber driver if they were driving a passenger at the time of the accident. In any other situation, the driver’s own auto insurance will likely cover the damages. As you probably know, the basic auto policies required by law have rather low limitations. If your damage is substantial and you don’t carry underinsured motorist insurance coverage, you might have to sue the driver.
Uber Drivers Are Not Covered by Company Insurance, Because They Are Independent Contractors
This is a myth that originated from the grey area of insurance coverage that was, in fact, very real when ride-sharing services were just started on the market. Nowadays, Uber, Lyft, and other transportation network companies are generally liable for the damage their drivers’ cause, even if they are not considered fully employed.
Uber covers the following damages, depending on the situation:
- $50,000 per individual for bodily damage, when the driver’s app is active and they are waiting for a ride
- $100,000 per accident for bodily damage, when the driver’s app is active and they are waiting for a ride
- $1 million for bodily damage, when the driver has passengers who requested a ride through the app
If you have suffered injuries while riding in an Uber or because an Uber hit you, contact an experienced St. Louis Uber accident attorney who will be able to navigate these grey areas, protect your rights, and fight to get you the compensation you are entitled to.