Ridesharing has become a widely popular and convenient transportation option in Texas, largely because of the growth of companies like Uber and Lyft. With the rise in rideshare use, there has also been an increase in accidents involving rideshare vehicles.
The growth and risks of ridesharing
Rideshare services, which first gained popularity around 2010, match drivers with passengers through smartphone apps that let users request and pay for rides instantly. Despite their convenience, these services have been associated with increases in traffic accidents in urban areas.
A study by researchers at the University of Chicago and Rice University, using data on U.S. cities from 2001 to 2016, found that the arrival of ridehailing was associated with an increase of about 3 percent in fatal accidents and traffic deaths. The researchers link the increase to more vehicle miles on city streets, and the relationship between ridesharing and accidents remains a significant concern.
Rideshare insurance and liability
When a rideshare vehicle is involved in an accident, insurance coverage differs from a standard accident:
- Passenger injuries. If you are injured as a rideshare passenger, Texas requires at least $1 million in liability coverage to be in force during the ride, from the driver’s policy, the company’s, or both. That coverage can apply when the rideshare driver was at fault; when another driver caused the crash, that driver’s liability insurance is the starting point, and whether the rideshare policy adds uninsured or underinsured motorist coverage depends on the policy, because Texas lets that coverage be rejected in writing.
- Driver injuries. If you are driving for Uber or Lyft and another motorist causes the collision, that driver’s liability insurance is the starting point for your damages. If you were at fault, the coverage Texas requires is liability coverage for the people you injured, and the required amount depends on your status at the time, such as waiting for a request or carrying a passenger; it does not by itself pay for your own injuries or your vehicle, and whether any other coverage does depends on the policies in force.
Additional insurance considerations
Some insurance companies offer a “rideshare” endorsement that a driver can add to a personal auto policy to bridge gaps between that policy and the rideshare company’s coverage, since most personal policies exclude driving for hire. According to the Texas Department of Insurance, these policies vary: some cover only part of the time a driver is logged on, and some cover only injuries to other people and their property, not the driver, the driver’s family, or the driver’s car. The endorsement is the driver’s to buy; a passenger’s protection comes from the required rideshare coverage, the at-fault driver’s liability policy, and the passenger’s own policy.
After a rideshare accident
Because liability in rideshare accidents is complex, consulting an experienced attorney is advisable. A lawyer can clarify your rights, assist with insurance claims, and help you seek appropriate compensation.
If you or someone you know has been involved in a rideshare accident, tell the lawyers at Leatherwood & Schindler what happened. The firm explains separately how the driver’s app status shapes a rideshare collision review and how responsibility after any car accident is established.
Being informed and prepared is essential to protecting yourself after a rideshare accident.