UBER AND LYFT LAWSUITS RELATED TO CAR ACCIDENTS

Rideshare driving has many unique features, and some common causes of Ridesharing accidents, include the following:

Speeding: Rideshare drivers have the freedom and flexibility as to how much they drive and when they want to drive because they work as independent contractors. Many are driving as a part time job to supplement income. The more drives they complete, the more money they can make. This may encourage unsafe driving and promote speeding. Oftentimes, a passenger is the one pressuring the driver to get somewhere quickly, such as to the airport so they can catch a flight; and, the driver feeling obliged to appease their customer, may overlook driving safely, to guarantee a better rating in the app.

Distractions: Rideshare rides are full of distractions. A rideshare driver must have a map app open to get directions where to go, and to be able to locate their passengers. Once the ride starts, oftentimes, the driver can also be distracted by conversations in the car, especially if the passengers are intoxicated or rowdy.

Drowsy driving: Since a driver can make his or her own hours, they may think they can handle more rides, even when they are overtired and should no longer be driving. The appeal of making more money can increase reckless behavior if a driver is not fully alert and focused on the road, and encourage driving even when the driver is too tired and should be calling it a night.

HOW UBER AND LYFT ARE DIFFERENT THAN TRADITIONAL TAXI SERVICES

Issues With Passenger Security

If you own and operate a taxi service in New York State, you have specific rules and regulations to abide by. However, with Uber and Lyft, anyone could operate as a driver if they had a valid driver’s license, a vehicle and their own car insurance. These rideshare companies did not originally require the following…

• Law enforcement or fingerprinting background checks for drivers
• Personal interviews with drivers
• Special driver’s license requirements

However, in recent years, ride share companies have tightened up their background checks and have developed policies on criminal background checks and re-running driving records to check for issues such as driving violations, impaired driving, and violent crimes.

Issues with Insurance After Rideshare Accidents

When using public transportation, such as taking a taxi or bus, you are protected by specific insurance policies purchased by the companies that own these vehicles to cover themselves and the employees they hire to transport passengers. However, when using a rideshare company such as Uber or Lyft, the driver is not considered an employee of the company, rather, they are designated as an “independent contractor”; and, as such, there may be issues as to whether the driver’s own vehicle insurance or the Transportation Network Company (TNC), such as Uber’s or Lyft’s, insurance is available to cover the accident and any injuries resulting therefrom.

Once an Uber or Lyft driver’s app is on, that person can receive ride requests. Potential riders would use their Uber app to ask for an idle driver in the area to take them to the destination. During this time, the NYS law insurance requirements for Uber or Lyft are applicable to cover damages in the event of an accident while driving “on the clock” without any passengers in the vehicle.

Once Uber riders request a ride and fill out the required fields for the trip including their current location and final destination, the app will connect drivers with them to get them to their end point. At this time, the rider will receive information about the driver including their name, vehicle type, and license plate number. When the driver is close, the rider will be notified via the app. Once an Uber driver or Lyft driver is assigned a passenger or the passenger has already been picked up, the car is now considered a commercial vehicle. This means NYS laws insurance requirements for Uber’s or Lyft’s commercial insurance policy will apply in the event of a car accident.

New York State law requires TNC’s , such as Uber or Lyft, to provide liability coverage for its drivers, as follows: if you’re driving alone to pick up a passenger the TNC must carry $75,000 per person/$150,000 per accident of Bodily Injury Liability; and $25,000 of Property Damage Liability for damaging another person’s car or other property. However, when you are transporting a passenger, the TNC must carry $1.25 million for both Bodily Injury and Property Damage Liability.

In New York State, your personal auto insurance policy will not cover accidents while driving for Uber or Lyft. NYS insurance policies have a list of exclusions and “driving-for-hire” is on that list. As such, from the time the driver turns on the ride-sharing app to the time they turn it off, there is no coverage under their personal auto policy for liability or physical damage to their car.

As such, if the app is turned off, a driver is “off the clock” and will not be receiving any requests for rides. At this time, there is no insurance coverage from the TNC since you are not driving on the Uber or Lyft platform during this period; and, as such, you are not covered by the TNC’s insurance policy for driver-partners. Any accidents that occur in a car while not driving with Uber or Lyft should be covered by the driver’s own personal automobile insurance coverage that they purchased on their own.