How to determine liability after a California rideshare accident and receive maximum compensation
Uber drivers enjoy many benefits, but they also have costly responsibilities like having to carry the required car insurance in the event of a rideshare accident. Driving for Uber has its pros and cons, just like any other job. Uber drivers are independent contractors and not employees.
Uber Driving Benefits
These benefits include:
- Uber’s rules and contractual standards apply to you. You are your boss. You decide when and how you work.
- You can work 24/7, even on weekends and holidays.
- You can get paid instantly if you drive a customer using your debit or credit card.
- Driving in many cities around the globe can bring you money.
- You can earn more than just driving passengers. Delivery services are also an option.
- Uber allows you to rent or lease a vehicle. Payments are taken from your Uber earnings.
Uber driving is not for everyone
Drivers of Uber have the following responsibilities and costs:
- All costs associated with driving a car are your responsibility. This includes car rental and lease payments. Your vehicle must be kept clean at all times. You are responsible for paying fuel and maintenance costs.
- Insurance is your responsibility. This includes the premiums for your regular coverage and a commercial rideshare endorsement.
- Independent contractors do not have the same benefits as employees, such vacation time and sick leave.
- Although you can control your schedule, earnings are dependent on passenger demand. This varies depending upon weather conditions, time of day and other factors. You must pay the costs of driving without a passenger (fuel and vehicle depreciation).
What happens if an Uber driver gets hurt in an accident?
Even the most cautious drivers can be involved in an accident. These are the steps to take if you’re involved in an Uber accident.
- Assure that all parties are safe.
- If necessary, contact the police or paramedics.
- Injured? Get immediate medical attention.
- Use the appropriate claim forms to report the Uber crash.
What insurance covers your injuries?
Uber requires drivers to have personal auto insurance and endorsements for rideshare policies.
Uber and insurance companies categorize rideshare incidents as three phases of service.
Phase 1
The Uber rideshare app has been turned off. If an accident happens during this phase, the driver’s insurance will cover it.
Phase 2
The Uber rideshare app has been turned on and the Uber driver is waiting to receive a request from a passenger for a ride. Uber’s insurance policy provides coverage for third-party liability coverage up to the minimum required by law.
The minimum coverage is usually:
- $25,000 per accident to cover property damage
- For injuries, $50,000 per person
- For injuries, $100,000 per accident
Uber’s insurance policy has 2 restrictions.
- It does not provide coverage for Uber drivers’ injuries or property damage.
- It is contingent coverage. It applies to third-party damages only to extent that Uber driver’s personal coverage is not applicable or insufficient to cover such damages.
Phase 3
This phase is when the Uber driver uses the Uber app to either transport a passenger or pick up the passenger. Uber insurance will cover:
- Uninsured/underinsured coverage. This coverage is not available for Uber’s Phases 1 or 2, which covers Uber drivers who aren’t at fault and the other driver who is uninsured.
- Comprehensive and contingent collision coverage, subject to a $2,500 minimum. This coverage is available regardless of fault. It can be used to cover damages caused by Uber drivers as long as they have their own collision and comprehensive coverage.
- Third-party liability coverage of up to $1,000,000.
What happens if Uber drivers are involved in an accident with another driver?
California is a comparative blame state. This means that the person responsible for an accident in California will be responsible for damages based upon their percentage of fault.
If a court finds that the other driver caused an accident by running a red light, but that the Uber driver was only 5 percent responsible, because they were distracted talking to their passenger as they crossed the intersection, then the Uber driver’s total compensation would be reduced by their percentage of fault.
To prove fault in a California car accident case you will need to show that the other driver was negligent, and that negligence caused your injuries or property damage. If you are physically able, take photographs and collect witness statements on the scene. You should also seek medical attention right away after an accident to ensure that you have documented your injuries.
What happens if an Uber driver causes an accident?
Your exposure to a claim filed by another party is the same regardless of whether you drive for Uber. You must have at least minimum liability insurance for injury or property damage to other drivers or passengers. Additionally, an endorsement must be added to your Uber driver profile.
You must also report an accident to Uber if you are driving for Uber. Uber could deactivate your account. Deactivation does not mean termination.
What happens if my passenger causes the accident?
Drivers and passengers are rarely at fault for an accident, as the drivers and passengers are usually not strangers. Rideshare situations can be very different. The actions of passengers that they don’t know are impossible to predict.
What if a passenger’s inexplicable actions lead to an accident?
First, the Uber driver must take reasonable steps to address the injuries. They could be held liable if they don’t. Next, the driver must document all details and immediately report Uber about the accident.
Uber drivers must prove that passengers caused the accident by their actions. This means that the accident would not be possible without the actions of the passenger. It is difficult to prove.
A passenger may have a conversation that causes an accident. However, the driver cannot be held responsible for the passenger’s distraction. To be considered the direct cause of an accident, a passenger must interfere with the driver’s driving.
Summarized from an article by MVP Accident Attorneys.
