The rise of rideshare accidents and navigating legal claims against Uber and Lyft
Seems like everyone throughout the Northwest suburbs is using Uber and Lyft to some degree these days.
Although they are great to get to O’Hare or for after a night out, there has been a noticeable increase in accidents involving Uber and Lyft drivers throughout the suburbs. It is no surprise that the rise in use of Uber and Lyft has coincided with a rise in accident rates.
According to a study by the University of Chicago Booth School of Business, the increase of ridesharing services has resulted in a 3% increase in fatal motor vehicle accidents nationally.
While many auto accident claims, no matter the severity, can become frustrating experiences with insurance companies for those involved, claims involving Uber and Lyft can be even more challenging and complex as multiple insurance carriers often dispute their respective responsibilities and insurance coverage as it relates to rideshare drivers.
Legally speaking, Uber and Lyft operate under the premise that their drivers are independent contractors rather than employees, which has significant implications for liability in accidents. In certain situations, this classification allows the companies to attempt to distance themselves from direct responsibility, pushing the onus onto the driver's personal insurance.
Conversely, the driver’s personal insurance company often will rely on exclusions in its policy for “commercial activities” such as driving for a fee. This can create a “coverage gap” or coverage dispute when drivers are logged into the app, but not actively transporting passengers.
To address this issue, Illinois implemented the Transportation Network Providers Act, which mandates certain levels of coverage depending on the status of the Uber or Lyft driver.
Specifically, when a driver is logged into the app but not carrying a passenger, they must have at least $50,000 for personal injury per person, and $100,000 in the aggregate per incident. There also is a requirement that they carry $25,000 for property damage per incident.
However, when carrying passengers, these limits increase to $1 million for personal injury and property damage in the aggregate. Accordingly, victims of Uber and Lyft accidents often find themselves navigating through claims involving several possible levels of insurance.
Moreover, there is a growing number of lawsuits where passengers claim negligence or assault by drivers. These cases often delve into whether Uber or Lyft should be held vicariously liable for their drivers’ actions, challenging the independent contractor defense. There have been instances where victims successfully argued that the companies failed in their duty to screen drivers adequately or to implement safety measures that could prevent such incidents.
For those injured in Uber and Lyft accidents, the path to compensation involves understanding complex insurance layers and potentially filing a lawsuit. Experienced attorneys in Illinois focusing on rideshare accidents will advise victims to act swiftly in gathering evidence like app screenshots, police reports, and medical records to support their claims. These attorneys will stress the importance of navigating the dual insurance systems — the driver’s personal policy and the rideshare company’s coverage — to ensure victims receive the full compensation they deserve.
Although Uber and Lyft have revolutionized transportation and are extremely convenient, their growth in Illinois has been accompanied by an increase in accidents and injuries. The victims of these accidents often face significant legal battles over liability and compensation.
As this sector evolves, so too does the legal framework, and it is important to retain an attorney that is up to date on the latest changes in the law.
• If you have been involved in an accident involving Uber or Lyft, local suburban attorneys Vito & Dollenmaier Law can assist you navigating your claim. The Rolling Meadows firm’s website is www.vanddlaw.com.