Rideshare apps have changed the way that people hire transportation for a single ride. It is no longer necessary to call a taxi company, provide your address and obtain a quote to compare to another company’s price.
Instead, you can just log into an app that will locate you using GPS and then quickly see how much it will cost to take the ride, how long you will have to wait for your ride and exactly who will come to drive you.
Rideshare systems can keep the price of on-demand transportation lower and allow those with good driving records and safe vehicles an opportunity to make a little extra money. Rideshare systems can also leave people feeling uncertain about their rights if they get into a crash. Who pays for a collision involving a rideshare vehicle?
Who pays for the passenger in a rideshare vehicle?
Commercial vehicles and transportation services have an obligation to carry one million dollars in liability coverage. California lawmakers have extended those rules to include rideshare companies and their on-duty drivers.
Uber and Lyft will have their own insurance policy that covers you as a passenger taking a ride secured and paid for through their app. Fault could play a role if the rideshare driver doesn’t cause the crash, but the company can always subrogate your claim later. You may be able to make a claim from within the app for any losses you suffer.
Who pays for damage to your vehicle when a rideshare driver hits your car?
Coverage is a little bit less certain if you are not the passenger in a rideshare vehicle but rather someone in a different vehicle or a pedestrian struck by a rideshare driver.
In a collision between you and a rideshare driver, if they are at fault, their insurance should pay. The policy insuring the rideshare service may cover collisions that occur when a driver is on duty. However, someone who was not waiting for, traveling to or complete a ride ordered through the app at the time of the crash will have to rely on their own coverage.
Their personal motor vehicle policy will not have has brought of coverage as the commercial policy that applies to active-duty rideshare drivers, but it can still cover the damage to your vehicle, your lost wages and your medical costs after they cause a crash.