Are Rideshare Accidents in Texas Covered by Extra Insurance?

Rideshare companies like Uber and Lyft have changed the way many people get around in Alvin and the greater Houston area. It is encouraging to see how many people plan to rely on rideshare transportation when they go out partying because that reduces drunk driving and could potentially prevent many serious accidents.

However, the increasing number of rideshare drivers on our roads means that there’s a greater potential for accidents involving drivers delivering passengers who signed up through Uber or Lyft. Rideshare transportation increases traffic on the roads because, instead of driving to a destination, parking, and driving home—a total of two trips — rideshare requires four trips. The driver must travel to pick up the passenger, take the passenger to their destination, and then repeat the process when the passenger returns home.

In addition, rideshare drivers are often operating in unfamiliar territory. So, heavier traffic, with drivers who may be distracted by GPS, can lead to more collisions. The good news is that accident victims may be able to draw on additional insurance coverage to help cover their damages from a rideshare accident. The bad news is that this insurance is not always available, and it can be hard to recover without a dedicated attorney.

Insurance Provided by Rideshare Companies

Both Uber and Lyft attract drivers to their platforms by offering insurance. Coverage varies somewhat depending on the insurance laws in the state where the driver is operating. But the real difference in coverage involves the driver’s status at the time of the collision.

If a driver is “on a trip” carrying a passenger or “en route” driving to pick up a passenger, then the full insurance coverage applies. Both Uber and Lyft advertise that they provide $1 million in coverage to pay for property damage or injuries to riders or others hurt in an accident where the rideshare driver is at fault.

If a driver has the rideshare app turned on, is available to take ride requests, and is not yet en route to pick up a passenger, coverage applies but is substantially limited. The policies in Texas provide a maximum of $50,000 per person when an individual is injured, and if more than one person is injured, the policies will pay no more than $100,000 to all injured parties. The limit of coverage for property damage is $25,000.

If a driver is “offline” and has the app turned off, then the rideshare company’s insurance policies do not provide any coverage at all. The driver’s personal insurance is responsible for covering losses when the driver is found liable for an accident.

There are gray areas in these promises and many opportunities for insurance companies to insist that their policies were not in force at the time of the accident.

Problems with Rideshare Insurance

Insurance companies operate to make money, and they are more profitable when they pay out very little or nothing on claims. That gives them the incentive to fight vigorously in every car accident case. They will try to demonstrate that their driver was not at fault for causing the accident. They may try to insist that the driver’s personal insurance policy should be the primary or only source of coverage. They may try to trick accident victims into saying or doing something that allows them to shift liability. They will frequently pressure victims to accept a low settlement offer that provides much less than they need to cover future expenses.

The insurance provided by rideshare companies comes from the commercial branch of nationwide insurance companies with corporate legal teams who are very skilled and experienced in preventing accident victims from recovering fair compensation after an accident. Anyone hurt in a rideshare accident needs to work with a knowledgeable attorney who is prepared to counter their legal tactics and fight diligently to ensure that the victim receives full compensation for their losses, including pain and suffering.

Potential Corporate Involvement from Uber or Lyft

Rideshare drivers are not considered employees of the rideshare companies they drive for. They are independent contractors. Uber describes their service as a platform that matches those seeking rides with those providing rides—they are a transportation network company.

The independent contractor status of drivers means that, in most cases, Uber or Lyft cannot be held directly responsible for drivers’ actions, no matter how egregious they may be. The rideshare companies work hard to insulate themselves from liability as much as possible.

However, there may be situations in which the rideshare company could have at least a share of the liability for an Uber or Lyft accident. For instance, if a dangerous or unqualified driver caused an accident and the rideshare company had not performed a proper background check or ensured the driver’s credentials before accepting the driver into the system, then the company could potentially be liable, and it may be possible to obtain recovery beyond the limits of insurance policies provided for drivers.

DeKeyzer Law Understands How to Stand Up to Insurance Companies

Insurance companies are often the parties defending lawsuits not only in motor vehicle accident cases but also in premises liability, workplace accident, and other injury cases. They are very experienced in defending against liability and reducing claim value, so it is important to work with an attorney who knows how to fight back effectively.

At DeKeyzer Law, we built our reputation on our ability to succeed against large corporate interests and insurance companies, and we are ready to use our knowledge to help you. For a free consultation to discuss the possibilities of your case, call us at 713-904-4004 or contact us online now.