Can I Sue a Rideshare Company as a Driver on the Road in Chicago?

With the rising popularity of rideshare services like Uber and Lyft in Chicago, more people are opting for the convenience and efficiency these platforms offer. However, this increase in rideshare usage has also led to an increased risk of motor vehicle accidents involving rideshare drivers. 

A study from Chicago Booth highlights a concerning trend: the introduction of rideshare services has led to a roughly 3% increase in motor vehicle fatalities and fatal accidents. This uptick is particularly pronounced in large cities, which experienced increased car registrations following the launch of these services. [1]

Additionally, the rise in traffic accidents isn’t limited to vehicles; accidents causing fatalities to bicyclists and pedestrians have also escalated, mirroring the overall increase in driving fatalities. Given these statistics, the question arises: “If a rideshare driver hits my car, can I sue Uber or Lyft in Illinois?” 

This is a critical question for anyone involved in such accidents, as this can affect how compensation is sought.

Understanding Rideshare Operations in Chicago

In the City of Chicago, rideshare drivers, also known as Transportation Network Providers (TNPs), must adhere to specific rules and regulations to operate legally. TNP drivers must obtain a Chicago TNP Chauffeur License before they can begin offering rideshare services. This license ensures that the driver has met all the necessary requirements set forth by the city.

Additionally, the vehicles used for rideshare operations must be registered with the City of Chicago. Once registered, the city issues a one-page Emblem, which verifies both the TNP Chauffeur License and the vehicle registration. It is mandatory for this Emblem to be displayed whenever the TNP chauffeur and vehicle are in operation within the city limits.

Both the TNP Chauffeur License and the vehicle registration emblems are valid for only one year, expiring annually on June 30. If the driver or vehicle owner fails to register or display a current TNP Chauffeur License and vehicle registration emblem, they could face serious consequences such as vehicle impoundment and/or large fines.

Driver Status in Illinois

In Illinois, rideshare drivers are typically classified as independent contractors rather than employees. This classification has significant implications for liability and compensation. 

As independent contractors, drivers are considered to operate their vehicles as separate businesses, which limits the direct responsibility of rideshare companies for drivers’ actions. Consequently, if a rideshare driver hits another vehicle, the company is generally not directly liable for the accident, complicating the process of seeking compensation.

Instead, the issue of liability often revolves around the insurance policies in place, both personal and those provided by rideshare companies for different periods of the ride. Understanding these distinctions is crucial for anyone seeking to address legal and financial repercussions following a rideshare-related incident.

Legal Framework for Rideshare Accidents in Illinois

Understanding the legal framework for rideshare accidents in Illinois involves delving into several key aspects, including recent legislative updates and the role of an employer versus an independent contractor.

Illinois Laws and Regulation

The ability to sue rideshare companies in Illinois is nuanced and highly dependent on specific circumstances and legal interpretations. Illinois has a developing body of law concerning rideshare-related accidents, which is often shaped by recent legislation and court rulings.

For instance, in 2023, a court ruled that a claim involving an injured party could proceed in a lawsuit against Uber. This decision underscored that, under certain conditions, the courts may be able to hold rideshare companies liable – or at least allow cases to go to trial.

Conversely, another 2023 case emphasized a different approach, mandating that negligence claims against Uber be settled through arbitration rather than in court. This requirement for arbitration reflects a common contractual clause in rideshare agreements that aims to handle disputes outside the courtroom.

These contrasting decisions illustrate that while there are avenues for holding rideshare companies accountable in Illinois, the paths to resolution can vary significantly. Any injured party or legal representative must carefully consider the specific legal contexts, recent precedents, and applicable laws and regulations when pursuing claims related to rideshare accidents.

Employee vs. Independent Contractor: Implications on Legal Responsibility

The classification of rideshare drivers as either employees or independent contractors significantly impacts legal responsibility in the event of an accident. If rideshare drivers were classified as employees, the rideshare companies would typically bear vicarious liability for the drivers’ actions while they are on the job.

This means that if an accident occurs during the course of their employment, the company itself could be held liable for any damages or injuries incurred. This designation would align rideshare companies more closely with traditional employer-employee relationships, where the employer is responsible for the negligence of their employees.

On the other hand, as independent contractors, rideshare drivers are seen as operating their own businesses. This classification generally shields the rideshare companies from direct liability for the actions of their drivers. 

Instead, the financial burden often falls on the individual driver and their own insurance coverage. This independence means that injured parties might find it more challenging to sue the rideshare company directly, as the legal framework tends to treat the drivers as separate entities.

The distinction between these classifications is more than a technicality; it holds substantial weight in legal proceedings. Courts and legislators continually grapple with how to categorize rideshare drivers, and this ongoing debate shapes the landscape of liability and responsibility in rideshare-related accidents. 

Understanding these nuances is essential for anyone involved in these incidents, whether they are drivers, passengers, or other affected parties.

Scenarios Where You Can Sue Uber or Lyft in Chicago

After an Uber or Lyft accident in Chicago, there are specific scenarios where the rideshare company itself could be held directly liable, including:

• Negligent Hiring: If it can be proven that Uber or Lyft failed to properly vet a driver who has a history of reckless driving or criminal behavior, the company might be held responsible for any resulting accidents or injuries.
• Inadequate Training: Similarly, inadequate training of drivers can also be grounds for a lawsuit. If a rideshare company fails to provide sufficient training or guidance to its drivers, leading to unsafe driving practices, the company could be held liable for any incidents that occur as a result.
• Violations of Company Policies or Laws: If Uber or Lyft do not enforce their own safety policies or fail to adhere to local transportation laws, and this contributes to an accident, they can be held directly liable. 
• Insurance and Coverage Issues: Uber and Lyft offer insurance coverage for accidents that occur during a ride or while a driver is en route to pick up a passenger. However, if there is an issue with the insurance policy, such as a lack of adequate coverage or failure to disclose policy limits, and this leads to insufficient compensation for damages, the company might face a lawsuit.

These scenarios and exceptions provide potential avenues for holding rideshare companies directly liable in cases where their oversight, policies, or actions mandated by the company directly contribute to an accident.

Alternate Recourse Options

As you navigate the complexities of pursuing legal action, it’s crucial to explore all available recourse options when you can’t hold Uber or Lyft directly liable.

No-Fault Insurance Claim

A no-fault insurance claim allows individuals involved in an accident to receive compensation from their own insurance company, regardless of who was at fault. This type of insurance is designed to cover medical expenses, lost wages, and other out-of-pocket costs quickly, without the need for lengthy litigation.

However, it’s important to note that Illinois does not operate under a no-fault insurance system. Therefore, this option is not available for rideshare-related incidents in Chicago. In Illinois, determining liability and pursuing compensation involves identifying the party at fault, which can sometimes complicate and prolong the claims process.

Sue the Driver

If the rideshare company cannot be held liable, another option for recourse is to sue the driver directly. This route becomes applicable when the driver’s negligence or misconduct directly leads to an accident or injury. 

For instance, if a rideshare driver is found to be driving under the influence, speeding, or engaging in other reckless behaviors, affected parties might have grounds to file a lawsuit against the driver. 

This legal action would aim to recover damages for medical expenses, property damage, pain and suffering, and other related costs. Suing the driver will require a thorough investigation and the gathering of substantial evidence to prove liability.

Steps to Take If Hit by a Rideshare Driver

If you’re involved in an incident with a rideshare driver in Chicago, such as Uber or Lyft, taking the right steps immediately afterward is vital to ensure your safety and to protect your rights. Here are some critical actions to consider:

• Check for injuries: Your first priority should be the health and safety of everyone involved. If anyone is injured, call 911 and let them know you need emergency medical services immediately. Do not attempt to move injured individuals unless there’s an imminent threat, like fire or oncoming traffic.
• Move to safety: If you can do so safely, move yourself (and, if possible, your vehicle) out of harm’s way away from traffic lanes.
• Call the police: Even for minor accidents without serious injuries, it’s important to contact the police and file a report. In Chicago, the police should be called for any traffic accident that causes injury or significant property damage. Inform them that you’ve been involved in an accident with a rideshare vehicle.
• Wait for help: Stay at the scene until help arrives unless your safety is at risk. Leaving can lead to complications or claims of hit-and-run if not properly managed.
• Exchange information: While waiting for authorities, exchange contact and insurance information with the rideshare driver. This should include their name, phone number, insurance company and policy number, driver’s license number, and the make and model of both vehicles involved.
• Document the scene: Use your phone or a camera to take photos of all vehicles from multiple angles, showing damage done and any street signs or landmarks that can help establish where the accident occurred. If there are witnesses around, ask for their contact details in case they need to provide statements later.
• Report to the rideshare company: As soon as you’re able to do so, report the accident to the rideshare company. Use their app or website, as Uber and Lyft have dedicated portals for these situations. Just give the facts – don’t provide any opinions about whether you were partially at fault or what you think happened.
• Save any evidence: Beyond photos taken at the scene and witness contact info, preserve physical evidence of the crash – such as damaged items/personal effects – and be sure to keep digital copies of all communications with both the rideshare driver and respective insurance companies.
• Seek medical attention: It is crucial that you see a doctor even if your injuries initially appear minor, as some symptoms may not become apparent until hours or days after an accident. Keep records of all medical treatments received in connection to the accident.
• Contact a car accident lawyer: Consult with a personal injury attorney who specializes in rideshare accidents; most offer free consultations to assess the situation. An attorney can guide you through the process, deal directly with insurance companies on your behalf, and work to ensure that any compensation you’re entitled to is fairly pursued.
• Inform your insurance company: Notify your own insurance company about the crash. They can provide guidance on how coverage works for accidents with rideshare vehicles and determine if you might receive benefits or coverage under your own insurance policy.

Following these steps after being involved in an accident with a rideshare driver can significantly help protect your well-being and secure the necessary information to protect your rights, which could be crucial for receiving appropriate compensation for any damages or injuries sustained.

Contacting Your Own Insurance Company

When you’re involved in a rideshare-related accident, it’s essential to have some knowledge about dealing with your insurance company.

Understanding Your Insurance Policy

When involved in a rideshare-related accident, the first step is to familiarize yourself with your own insurance policy. Understanding the scope of your policy can help you know what expenses might be reimbursed and the steps you’ll need to take during the claims process.

Dealing with Rideshare Drivers’ Insurance

Rideshare drivers are required to have their own personal insurance policies for their work. Uber and Lyft, for example, provide liability coverage for their drivers when they are actively transporting a passenger or on their way to pick one up. 

However, there may be gaps in coverage when the driver is not logged into the app. Understanding these nuances is crucial when handling claims involving rideshare drivers.

Potential Insurance Complications

Navigating the complexities of dealing with rideshare drivers’ insurance can be challenging. There may be disputes over which insurance policy is applicable or whether the driver’s personal auto insurance covers the incident. 

In some cases, the rideshare company’s insurance may deny claims, leading to further complications. It is advisable to work closely with your insurance company and a personal injury lawyer to address these issues and ensure you receive the compensation you deserve.

By understanding your insurance policy and the specifics of rideshare coverage, you can effectively navigate the claims process and mitigate potential complications.

Contact An Experienced Law Firm

When dealing with the aftermath of a rideshare accident, contacting an experienced law firm can be invaluable. Here’s how they can assist you in this process:

• Handling Insurance Claims: They can manage communications with insurance companies, help resolve disputes, and ensure that you receive fair compensation.
• Gathering Evidence: A lawyer can assist in collecting and preserving crucial evidence such as witness statements, accident reports, video footage, and medical records.
• Providing Legal Representation: Should your case go to court, your lawyer will advocate on your behalf and fight for you in court, striving to achieve the best possible outcome.

Benefits of Local Expertise

Choosing a lawyer with specific knowledge of Chicago’s legal landscape for rideshare accidents comes with several benefits:

• Familiarity with Local Laws: A local attorney will have a deep understanding of Illinois state laws and Chicago regulations that may impact your case.
• Connections with Local Experts: They can connect with local investigators, medical professionals, and expert witnesses to build a strong case.
• Contextual Knowledge: Knowledge of common accident sites, local traffic patterns, and area-specific rideshare regulations can provide critical insights that out-of-town lawyers might miss.
• Accessibility: Proximity allows for easier meetings and more effective communication, fostering a better working relationship.

If you are a Chicago resident involved in a rideshare accident, it is crucial to consult with a knowledgeable local personal injury lawyer. Our expertise and understanding of the local legal environment can significantly enhance your chances of a successful outcome. Don’t navigate this challenging process alone, contact us today.

We also serve clients from Buffalo Grove, Decatur, Naperville, Schaumburg  and throughout Illinois.

Resources: [1] UChicago News