Uber rideshare services have gained immense popularity with young adults due to low fare rates and convenience. However, Uber drivers are not immune to causing accidents that result in injury and death. Unfortunately, victims sometimes do not receive fair compensation because of Uber’s complex insurance coverage policies.
Our auto accident attorneys want to protect potential victims of Uber accidents with these important tips.
“There are many complexities involving the insurance coverage of Uber drivers that put injured victims at a possible disadvantage,” Mike Wyatt says , auto accident attorney. “This is because Uber drivers are not classified as ‘employees.’ They are technically independent contractors, or third-party service providers.”
Uber drivers who are “off duty” have to rely on their own individual auto insurance in case of an accident. While they are “on duty,” but in-between fares, then drivers are also covered by Uber’s contingent liability coverage. This can create problems for those injured in Uber accidents. Depending on the state and the carrier chosen by Uber, this only compensates up to their coverage limit for any injury or property damage.
“Ultimately, this coverage puts a limit on your emotional and physical suffering,” Mike explains. “If you are a passenger in the Uber car and the Uber driver causes an accident that results in your injury, then your claim against the company cannot exceed their coverage limit. In order to receive fair compensation, a victim would have to seek a claim against the Uber driver whose personal coverage would not cover the extant of the damages.”
Insurance coverage is just as complex when an Uber driver injures a pedestrian, or motorist/passenger in another vehicle. The driver is covered up to the limit of Uber’s coverage if the accident occurs when the driver is transporting a passenger. When a driver is off duty or in-between fares during an accident, then their individual auto insurance is responsible.