Who’s Liable When Your Rideshare Goes Wrong in NOLA?

When it comes to rideshare services like Uber and Lyft, we rarely think about what might happen if we get into an accident before we get in. What happens when something goes wrong during a ride? Who is ultimately responsible for any damages or injuries that occur? While the rideshare companies claim to have robust insurance coverage, rest assured, they will make every effort to avoid paying or paying the least amount possible. Holding them liable can be a challenge. The NOLA personal injury attorneys at Egenberg Trial Lawyers can answer any questions you have regarding rideshare liability. 

Transportation Network Company Motor Vehicle Responsibility Law

To understand the liability issues surrounding rideshare accidents, let’s start by seeing what the law says. In most states, including New Orleans, rideshare companies fall under the Transportation Network Company Motor Vehicle Responsibility Law. This law requires rideshare companies to carry liability insurance coverage that kicks in when the driver is logged into the app and available for rides.

Here’s a breakdown:

• Uber and Lyft must provide liability coverage up to $1 million for accidents that occur while the driver is engaged in a ride.
• They also offer supplementary coverage for bodily injury caused by uninsured or underinsured motorists.
• Lyft and Uber’s insurance coverage extends to passengers, pedestrians, and other drivers involved in the accident in question.

It’s also helpful to know that both Uber and Lyft have in-house claims departments to handle accidents.

Liability for An Accident Caused by Uber and Lyft Drivers

In the event of an accident caused by Uber or Lyft drivers, determining liability is often an issue of contention. Rideshare drivers are independent contractors, not employees, which tends to complicate matters when it comes to assigning responsibility. According to the Transportation Network Company Motor Vehicle Responsibility Law, the rideshare company’s insurance should cover any damages or injuries caused by their drivers while they are logged into the app.

Are Rideshare Companies Ever Directly Liable?

While rideshare companies operate under the premise that drivers are independent contractors, there are circumstances where the company itself can be held directly liable for accidents or injuries during a ride. As NOLA personal injury lawyers, here are three scenarios we see:

Driver Is Liable

If a rideshare driver causes an accident due to negligence or recklessness, they can be held personally liable for the resulting damages and injuries. In this case, we would advise, as your legal representation, that you file a personal injury claim against the driver directly, rather than the rideshare company.

Passenger Is Liable

In some cases, passengers who are distracting or interfering with the driver’s ability to safely operate the vehicle can be held partially liable for an accident. Determining liability in such situations is difficult. Having a well-informed personal injury attorney by your side will make all the difference.

Uber or Lyft Is Liable

In some circumstances, the rideshare company can indeed be held directly liable for an accident or injury that occurs during a ride. For example, if the company failed to properly screen or train the driver, resulting in an accident, they could be responsible. Additionally, if there are issues with the car’s maintenance or safety features, this would be another instance in which the rideshare company could be liable.

Liability Gray Area with Both Uber or Lyft

Uber and Lyft, the two giants of the rideshare industry, have similar protocols when it comes to dealing with accidents. Both companies provide insurance coverage for their drivers as mandated by the law. However, this is one of the main “gray areas” we run into often as NOLA personal injury attorneys who handle rideshare accidents.

If the driver is logged into the app, but hasn’t accepted a ride…are they “working” or not? We believe that, indeed, the driver is working. However, Uber and Lyft often limit coverage in these cases, which could impact both the driver and a passenger who maybe has not yet stepped into the vehicle yet. A passenger may still have a claim against the driver’s personal insurance, but the driver’s personal insurance is likely to say that they were working and not cover it.  

What Can Rideshare Companies Be Held Liable For?

Rideshare companies can be held liable under these circumstances:

• Negligent hiring practices: If the company fails to conduct proper background checks or disregards driver qualifications, they can indeed be responsible for any accidents or injuries caused because of this.
• Inadequate driver training: Rideshare companies have a responsibility to ensure that their drivers are adequately trained to handle various on-the-job situations. If a lack of training contributes to an accident, either Lyft or Uber can be held liable.
• Negligent maintenance of vehicles: Rideshare companies are responsible for ensuring that the vehicles used by their drivers are properly maintained and in good working order. If poor vehicle maintenance should lead to an injury, rideshare companies can be liable.
• Failure to enforce safety standards: Rideshare companies must establish and enforce safety policies for their drivers. If they neglect to do so, the resulting injury should legally be their responsibility.

Rideshare Drivers Are Denied Coverage Like Passengers

While rideshare companies provide insurance coverage during rides, there are instances where injured drivers are denied coverage and support. Here are a few situations where this happens:

• Uninsured or underinsured motorists: If the at-fault driver is uninsured or underinsured, there may be challenges in obtaining appropriate compensation for damages. Rideshare drivers have definitely been denied coverage in such circumstances.
• Violating company policies: If a rideshare driver violated any of company policy, such as transporting too many passengers or driving under the influence, the company may deny coverage. Ironically, drivers are required to use their phones while driving, which also rubs up against that gray area.

We Are Hardworking New Orleans Personal Injury Lawyer

If you have been involved in a rideshare accident or experienced harm during a ride in New Orleans, you need a trusted legal advocate by your side. The NOLA personal injury attorneys at Egenberg Trial Lawyers are eager to help. To set up a free legal consultation, contact our office now.