As ridesharing services like Uber or Lyft have become increasingly popular, more people are getting involved in accidents while using these platforms.
Research reveals a troubling trend in U.S. cities following the introduction of ride-hailing services. Studies indicate a roughly 3% increase in traffic fatalities, with both vehicle occupants and pedestrians affected by this rise in deadly accidents. [1]
If you’ve been injured in an Uber or Lyft accident, you may wonder what your options are for seeking compensation from these rideshare companies. This article will guide you through the complexities of suing Lyft following an accident, when you can sue the company directly, and how an experienced Lyft accident attorney can assist in the claims process.
Liability in a Lyft Accident
When you’re involved in a Lyft car accident, one of the most important steps is determining liability. Lyft accidents can be complicated due to the unique relationship between Lyft and its rideshare drivers and the different phases of a Lyft ride where insurance coverage may apply.
Depending on whether the driver was actively transporting a passenger, en route to pick someone up, or simply logged into the app, different layers of insurer coverage and liability may be triggered. Additionally, liability can extend to multiple parties, including the driver, another motorist, or Lyft itself, making it crucial to carefully assess fault in each situation.
Lyft’s Role as a Transportation Network Company (TNC)
Lyft operates as a Transportation Network Company (TNC), connecting passengers with an independent contractor rideshare driver through its app. Lyft does not directly employ its drivers, which often complicates liability issues in the event of an accident.
This business model allows Lyft to argue that it is not responsible for drivers’ actions, as they are considered independent contractors, not employees. However, in certain circumstances, Lyft can still be held accountable for accidents involving a rideshare driver.
Determining Fault in Lyft Accidents
In a Lyft car accident, the fault may rest with the rideshare driver, another driver, or the Lyft itself. Here’s how fault can be determined:
- The Driver: If the driver’s negligence caused the accident—perhaps due to distracted driving, speeding, or failing to obey traffic signals—they may be liable for damages. However, as an independent contractor, the liability often shifts to the driver’s personal insurance coverage rather than directly to Lyft itself.
- Another Driver: If another driver caused the accident, you may be able to pursue compensation from their insurance. However, the involvement of a Lyft vehicle could still activate Lyft’s insurer coverage, depending on the circumstances of the ride.
- Lyft: While rare, there are instances where Lyft itself could be found at fault. For example, if Lyft failed to adequately vet or monitor a driver with a history of unsafe driving, they could share liability.
When Can You Sue Lyft Directly?
Suing Lyft is not always straightforward, but the company can be held liable for an accident in certain situations. These cases often involve claims that Lyft was negligent in hiring, supervising, or retaining their drivers.
Additionally, Lyft may be held accountable if it fails to enforce safety policies, properly investigate driver conduct or monitor ongoing driver performance.
In these scenarios, it’s essential to gather evidence showing that Lyft’s lack of action directly contributed to the accident, whether through oversight during the hiring process or neglect in maintaining a safe standard for its rideshare drivers.
Negligent Hiring and Retention
Lyft is responsible for properly screening every rideshare driver before allowing them to work on the platform. This accountability includes conducting background checks and reviewing driving histories.
If a driver with a known history of careless driving or other concerning behaviors causes an accident, Lyft could be held liable for negligent hiring. Additionally, Lyft could be found at fault if it fails to suspend or remove a driver after repeated complaints of dangerous behavior, making this a case of negligent retention.
Negligent Entrustment of a Vehicle
Negligent entrustment occurs when a company knowingly allows an unsafe driver to operate a vehicle on its platform. If Lyft was aware—or should have been aware—that a driver was unfit to drive yet allowed them to continue accepting passengers, it could be sued for negligently entrusting the Lyft vehicle to that driver.
For example, if a driver has multiple DUI convictions, Lyft could potentially be held liable for an accident that the driver caused while transporting passengers.
Lyft’s Direct Liability
In other instances, Lyft could be held directly responsible for a Lyft accident. These could include issues with their app, such as faulty GPS routing or safety protocols that fail to protect passengers. For example, if the Lyft app distracts drivers by requiring interaction during critical driving moments, Lyft could face direct liability for contributing to unsafe driving conditions.
Filing a Claim Against Lyft’s Insurance
If you’ve been injured in a Lyft car accident, one of your first steps may be to file a claim through the Lyft insurance policy. Understanding how Lyft’s insurer coverage works is essential for pursuing the compensation you deserve.
Lyft’s Insurance Coverage
Lyft provides a multi-tiered insurance policy to cover motor vehicle accidents at different ride stages. Here’s a breakdown:
- While the App is On but No Passenger is in the Vehicle: During this period, the Lyft driver’s personal insurance is the primary coverage, but Lyft provides supplemental coverage of up to $50,000 per person, $100,000 per accident for bodily injuries, and $25,000 for property damage.
- While En Route to Pick Up a Passenger or During a Ride: Once Lyft’s rideshare drivers are on their way to pick up a passenger or are actively transporting someone, Lyft’s $1 million liability coverage is in effect. This insurance also includes underinsured/uninsured motorist coverage, meaning passengers are protected even if another driver lacks adequate insurance.
Coverage Limits
While Lyft’s insurance offers substantial coverage, it’s essential to understand the limits. The $1 million liability coverage sounds comprehensive, but it may not cover all medical expenses, lost wages, and other damages for serious injuries or multiple accident victims.
Victims may need to explore other avenues, such as suing the Lyft driver or pursuing compensation through their personal insurance.
Filing a Claim
To file a claim with Lyft’s insurance company, you must submit a report of the accident, provide evidence such as police reports and medical records, and cooperate with an insurance adjuster’s investigation.
Hiring a Lyft accident attorney specializing in this type of case can significantly simplify this process and help ensure you receive fair compensation for your injuries and losses.
Suing the Lyft Driver
In some cases, suing the Lyft driver may be necessary, particularly if their actions contributed to the accident and Lyft’s insurer coverage is insufficient.
Driver’s Personal Insurance
The Lyft driver’s personal auto insurance may apply if the accident occurs while the driver is not logged into the Lyft app or waiting for a passenger.
However, most personal auto insurance policies do not cover accidents during rideshare activities, which can complicate your ability to collect damages. It’s crucial to understand the extent of the driver’s personal insurance and how it applies to your case.
Comparative Negligence
Comparative negligence laws apply in many states, meaning the Lyft driver and another party could share fault for the car crash. For example, if a passenger was injured in a collision where the driver and another motorist were partially at fault, the compensation awarded to the passenger might be reduced based on the percentage of fault assigned to each party.
Navigating comparative negligence laws can be complex, making hiring a Lyft accident lawyer even more critical in ensuring a fair outcome.
Challenges and Considerations in Suing Lyft
Suing Lyft isn’t always straightforward, and there are several challenges to be aware of when considering legal action.
Arbitration Clauses
One of the biggest hurdles to directly suing Lyft is the arbitration clause many users agree to when signing up for the app. This clause requires disputes to be settled through arbitration rather than court, limiting your ability to file a lawsuit.
Arbitration can still result in financial compensation for your injuries, but it may not offer the same legal protections or potential outcomes as a court case. An experienced attorney can help determine whether this clause applies to your situation and how to proceed.
Proving Lyft’s Liability
Proving Lyft’s direct liability in a Lyft car accident can be challenging. For example, you would need to show that Lyft was negligent in its hiring practices or failed to enforce safety protocols. Gathering evidence of this negligence requires an in-depth investigation, including reviewing company records, safety procedures, and the actions Lyft took concerning the at-fault driver in your accident.
Statute of Limitations
It’s important to file your claim within the statute of limitations for personal injury cases in your state. In most U.S. states, the statute of limitations is two to three years from the date of the accident. Failing to file within this timeframe can result in losing your right to seek compensation.
Consulting a Lyft accident lawyer early on ensures your claim is filed within time limits.
The Importance of Legal Representation
If you’ve been injured in a Lyft car accident, seeking legal representation can significantly affect your ability to recover compensation for medical bills, lost wages, bodily injury, and other damages.
Navigating Complexities
Rideshare accidents can be legally complex, involving multiple parties, insurance coverage issues, and questions of liability.
An attorney experienced in handling cases involving rideshare company car accidents can help you understand your rights, gather crucial evidence, and navigate the legal system. They’ll ensure your claim is handled properly and the insurance company pays a suitable amount.
Negotiating with Insurance Companies
An attorney can also negotiate with Lyft’s insurance company, ensuring you receive fair compensation if you’ve suffered injuries. Insurance companies often attempt to settle claims for less than they’re worth, but a skilled attorney will fight to ensure that the insurance company fully covers your medical expenses, lost wages, and other damages.
Representing You in Court
In cases where arbitration isn’t required, or if your case involves additional parties, such as the Lyft driver or another motorist, a lawyer can represent you in court. They will present evidence, argue on your behalf, and work to secure the compensation you deserve.
Reach Out to a Car Accident Lawyer Now!
If you’ve been involved in a Lyft accident, it’s essential to consult with a lawyer as soon as possible to protect your rights and pursue the compensation you’re entitled to.
At Rosenfeld Injury Lawyers, we understand how overwhelming and confusing the aftermath of a Lyft accident can be. Our experienced team specializes in rideshare accident cases. We are committed to securing the maximum compensation for your damages, including mounting medical expenses, lost wages, and the emotional toll of the accident.
Call (888) 424-5757 or complete our contact form for a free consultation with a Chicago Lyft accident lawyer.
References: [1] NBER