Rideshare services like Uber and Lyft have become increasingly popular in Texas, offering a convenient and affordable alternative to traditional transportation options. However, unlike other commercial drivers, rideshare drivers don’t receive extensive training or hold special certifications. As a result, accidents involving rideshare vehicles can occur, leaving passengers, pedestrians, and other drivers wondering who is at fault and how to seek compensation for their injuries and damages. A Texas Uber and Lyft accident lawyer can help you navigate a complex car accident claim.
Texas Follows a Fault-Based Insurance System
Texas is a fault-based insurance state, which means that the party responsible for causing an accident is also responsible for paying damages to the injured parties. To uphold this financial responsibility, all drivers are required to carry liability insurance in specified minimum amounts.
If you are an Uber or Lyft passenger and your rideshare driver causes a collision, the rideshare company’s third-party liability coverage can take over while the driver is active on the app. This means that the corporate liability policy is often responsible for covering your medical bills, lost wages, and pain and suffering.
Who Pays for Damages After a Rideshare Accident?
In Texas personal injury cases, damages refer to the losses and expenses incurred by the injured party as a result of the accident. These can include medical bills, lost wages, pain and suffering, and property damage. Depending on the circumstances of the rideshare accident, several parties may be responsible for paying these damages:
- The rideshare driver: If the rideshare driver was at fault for the accident, their personal auto insurance policy may be applied first before corporate insurance policies are used.
- The rideshare companies: Uber and Lyft provide third-party liability coverage that kicks in when a driver is logged into the app and waiting for a ride request, en route to pick up a passenger, or transporting a passenger to their destination.
- Another driver: If another driver on the road caused the accident, their auto insurance policy would be responsible for covering damages.
How Do Lyft’s and Uber’s Insurance Policies Work?
Both Uber and Lyft provide insurance coverage for their drivers, but the extent of this coverage depends on the driver’s status at the time of the accident. If the driver is not logged into the app, these companies do not provide coverage.
This changes when the driver opens the app:
- Period 1: When the driver is logged into the app and waiting for a ride request, Uber and Lyft provide liability coverage only, with the driver’s policy serving as the primary coverage. This includes $50,000 in bodily injury per person, $100,000 in total bodily injury per accident, and $25,000 in property damage per accident.
- Periods 2 and 3: When the driver is en route to pick up a passenger or transporting a passenger, Uber and Lyft provide $1 million in liability coverage. The driver’s policy remains the primary source of coverage. The companies also offer contingent collision and comprehensive coverage up to the actual cash value of the vehicle, with a $2,500 deductible.
Discuss Your Legal Options with a Texas Rideshare Accident Attorney
Uber and Lyft car accidents in Texas often bring complex legal and insurance issues that can be difficult to navigate alone. In these situations, an attorney can help you make sense of your legal options and fight for the compensation that you deserve. Contact a Texas rideshare accident lawyer as soon as possible to discuss your case and explore your options for recovery.
