Why a Rideshare Driver’s Status Matters: Navigating Uber and Lyft Accident Claims in Texas

Uber and Lyft drivers work for the rideshare companies. They have to follow the company rules, and they get paid through the company. But legally, the drivers aren’t considered employees of Uber and Lyft. This status and other categorizations can have a profound impact on your ability to recover compensation if you’ve been injured in a collision caused by a rideshare driver.

Accidents involving Uber and Lyft drivers are much more complicated than other car accident cases, so it is important to work with an attorney who understands how to take on corporate legal teams and their insurance companies. The driver’s status is one of the complicating factors, so here we take a look at what that status could be and why it matters.

Status as an Independent Contractor

Uber and Lyft do not consider their drivers to be employees, and this classification is reinforced by Texas law. Instead, the drivers work as independent contractors. In theory, this means they control their own operation. The rideshare companies actively work to keep drivers from being classified as employees because if they were, Uber and Lyft could be held responsible for their actions. By classifying and treating drivers as independent contractors, rideshare companies avoid liability.

However, depending on the situation, a skilled accident attorney may still be able to hold Uber or Lyft liable if something the rideshare company did directly caused an accident. For instance, if Uber advertised that its drivers all had verified safety records and yet the company never actually checked the records of its drivers, then if a driver with multiple citations for reckless or impaired driving caused an accident, it might be possible to sue Uber directly because customers relied on the company’s claims that turned out to be false.

Although it is usually not possible to sue Uber or Lyft directly, these rideshare companies offer insurance that can cover injuries in a car accident. The driver’s status determines the availability of that insurance.

Status in the Rideshare App

People who need a ride order transportation through the apps operated by Uber and Lyft. Both passengers and drivers rely on this app for communication, payment, and other services.

The rideshare apps recognize three types of driver status. The driver’s status at the time of the accident determines the insurance coverage available for collisions caused by an Uber or Lyft driver.   

Status #1: When the App is Offline

When a rideshare driver has the app turned off, the driver is considered off duty, and their operation is not connected to Uber or Lyft at all. The insurance provided by the rideshare company will not apply to any actions taken by the driver. 

The driver is supposed to have personal insurance to cover their liability if they cause an accident. Texas law requires vehicle owners to carry insurance to cover at least $25,000 in property damage and at least $30,000 to cover injuries. (If more than one person is hurt in an accident, the insurance coverage is supposed to cover $60,000 in total injuries.)

While the statutory minimums may seem sufficient to cover losses in most accidents, it is important to remember how costly medical bills and car repairs have become. If you get hurt, your hospital and doctor bills could easily be over $30,000. Minimum coverage may not provide enough to even cover medical bills. There would be nothing left to pay for future medical needs, to cover the wages lost while you were unable to work, or to compensate you for your pain and suffering.

Status #2: When the App is On But the Driver is Still Waiting for a Request

While a driver is ready to work but has not accepted a ride request, their status is in transition. They consider themselves working, but the rideshare company is not officially earning any money from its service. While a driver is in this status, Uber and Lyft provide limited insurance coverage. In Texas, Uber provides coverage with limits above the state minimum when an accident causes injuries. Their insurance provides up to $50,000 per person or $100,000 for two or more injured individuals. 

However, the insurance company is likely to argue that its coverage does not apply and that the driver’s personal insurance is in effect. This is one reason it can be so beneficial to work with an experienced attorney who can circumvent the insurance company’s attempts to deny liability.    

Status #3: When the Driver Has Accepted a Request but Hasn’t Picked Up Passengers

In this third status, an Uber or Lyft driver is not actively transporting a passenger, yet they are still engaged in providing a ride through the service. The rideshare company advertises to drivers that it recognizes this status and provides its highest level of insurance coverage in this situation. If an Uber or Lyft driver causes a collision while they are on the way to pick up a ride, then up to $1 million in coverage should apply for injuries resulting from the accident.

Status #4: When a Driver is Transporting Passengers

When a rideshare driver is carrying passengers to their destination, then Uber and Lyft are also supposed to provide their highest level of insurance coverage. However, even in this situation, recovery through insurance is far from guaranteed. Insurance company attorneys will argue vigorously that someone else was responsible for causing the accident, whether it was another driver, someone nearby, or even one of the passengers who got hurt.

DeKeyzer Law Fights for Full Recovery for Victims of Uber and Lyft Accidents

With so much insurance money and potential corporate liability on the line, the legal teams involved in a rideshare accident case swing into action rapidly and ruthlessly. Regardless of how badly someone was injured, the defense teams will be trying to deny or severely limit recovery. To succeed against this type of concerted attack, accident victims need to fight back with their own experienced legal advocates.

At DeKeyzer Law, we have built our reputation by standing up to corporations and securing full and fair compensation for those injured by the irresponsible actions of others. For a free case evaluation to learn more about what recovery could look like in your situation, call us at 713-904-4004 or contact us online today.