Receiving Compensation in a Rideshare Accident

Although it seems unfair and unjust, drivers cannot sue Uber or Lyft when one of their drivers has injured someone else in a car accident. Still, there are ways for the injured to be compensated for the harm that they have suffered.

The Drivers Are Independent Contractors

Uber and Lyft drivers are generally not employees of the company. In order to sue a company, the driver must be an employee. The rideshare company makes its drivers independent contractors for a number of reasons and one is to avoid legal liability for their actions. When an independent contractor has an accident, it is the driver themselves who bears responsibility and must pay for the accident.

The Drivers Must Maintain Insurance

Uber and Lyft require the driver to maintain a minimum of $1 million in insurance policies as a prerequisite to driving for the companies. Thus, the place where you will have to go to make your claim is to the insurance companies. If the amount of the claim exceeds $1 million, you would still not be able to sue the ridesharing companies because the drivers are not employees. Both passengers are other drivers can recover against this policy if an Uber driver has been involved in an accident.

When You Can Recover If You Sue Uber or Lyft

If the driver has broken the company’s rules and has transported passengers without insurance, then the company maintains a $1 million policy to cover uninsured drivers. But it still does not mean that you can sue the companies. Injury attorneys will also advise you that you can sue the company if the driver has done something egregiously bad, such that the company was negligent in engaging the driver for their services. For example, if the driver was a sex offender and the company’s screening did not catch it, they can be held liable.