Many of us have scheduled a ride with companies like Uber or Lyft. With at least 36% of Americans now using services like Uber and Lyft—up from just 15% in 2015—millions of people rely on these apps daily. But what happens when your convenient ride turns into a nightmare of injuries, medical bills, and insurance confusion?
The unfortunate fact is that if you’ve been injured in a rideshare accident, you’re not alone. A 2024 University of Illinois Chicago study found that one third of rideshare drivers reported being involved in a crash while working, with cellphone use, fatigue, and unfamiliar roads increasing crash likelihood.
The Rideshare Industry: Growing Rapidly, Along With Accident Risks
The numbers show the scope of ridesharing:
- Uber and Lyft collectively account for 6% of all vehicle miles traveled across the United States
- Uber has approximately 1 million drivers in the U.S., with about 209,000 in California alone, while Lyft maintains roughly 700,000 drivers nationwide
- The global ride-sharing market is expected to grow by more than 40 percent between 2023 and 2028, reaching approximately $216 billion.
- In the first quarter of 2024, Uber saw a 15% increase in platform users while Lyft noted a 12% jump.
As these services expand, so does the risk of being involved in an accident during your ride.
Insurance Coverage Gaps: What Injured Passengers Need to Know
Rideshare accidents involve complex insurance scenarios that can directly affect your compensation. The insurance that applies to your case may depend on, for example, the driver’s status at the time of the accident. According to information published by United Policyholders on the California Department of Insurance website, rideshare companies provide different levels of coverage at different times:
When the App is On, But No Ride is Accepted
- The rideshare company provides only minimum required liability coverage
- This is relevant if you’re injured by a rideshare driver who hasn’t yet accepted a ride
When a Ride is Accepted Through Passenger Drop-off
- Higher liability limits apply (typically $1 million)
- This coverage is designed to protect passengers during their rides
- Additional coverages like uninsured/underinsured motorist protection may be available
As a passenger, your ride should be covered by the higher liability limits, but complications can arise when, for example:
- Multiple vehicles share responsibility for the accident
- The driver’s status on the app is disputed
- Your injuries exceed policy limits
- The rideshare company contests liability
These complexities make rideshare accident claims particularly challenging for injured passengers, which is why it helps to get experienced legal representation to secure the compensation you deserve.
For you as a passenger, accidents that occur during Periods 2 and 3 typically offer the most substantial coverage. However, complications can arise when, for instance:
- Multiple parties share fault for the accident
- The driver’s status on the app is disputed
- Injuries exceed policy limits
- The rideshare company attempts to classify the driver as an independent contractor
Your Rights as a Rideshare Passenger in California
California has implemented strong protections for rideshare passengers. As a passenger in a rideshare vehicle in California, you have the right to:
- Expect a safe ride from a properly screened driver
- Access insurance coverage regardless of who was at fault
- Pursue claims against multiple parties including the rideshare driver, the rideshare company, and any other drivers involved
- Recover damages for medical expenses, lost wages, pain and suffering, and other accident-related costs
- Hold rideshare companies accountable for negligent hiring or retention practices
California’s comparative negligence system allows you to recover damages even if multiple parties share responsibility for the accident.
A $6 Million Lyft Settlement: How Penney & Associates Fought for Justice
In a significant victory for rideshare passenger rights, Penney & Associates secured a $6 million settlement against Lyft in a wrongful death case. In December 2017, a 22-year-old male passenger requested a Lyft ride from Sacramento to Loomis, California. The driver, who had been with the company for only one day, made several critical errors during the trip.
After driving 20 miles off course, the driver inexplicably moved from the safety of the center median and began a very slow acceleration into the southbound lanes of Highway 99. Another vehicle traveling at freeway speed struck the Lyft car. Tragically, the young passenger died from his injuries just 30 minutes later at the accident scene.
This case highlighted several critical issues in rideshare accident litigation:
- The inadequacy of driver training and onboarding procedures
- The dangers of inexperienced drivers navigating unfamiliar routes
- The rideshare company’s responsibility for properly screening drivers
- The catastrophic consequences that can result from preventable mistakes
What To Do If You’re Injured in a Rideshare Accident
If you’re involved in a rideshare accident in California, take these immediate steps to protect your rights:
- Seek medical attention immediately, even if injuries seem minor. Some injuries become apparent days after the accident.
- Report the accident through the app. Both Uber and Lyft have features that allow you to report accidents directly.
- Document everything: Take photos of the accident scene, vehicle damage, visible injuries, and collect contact information from witnesses.
- Preserve evidence by taking screenshots of your ride receipt, driver information, and trip details from the app.
- Do not give recorded statements to insurance companies before consulting an attorney.
- Avoid discussing the accident on social media or accepting quick settlement offers.
- Contact an experienced rideshare accident attorney who understands the complexities of these cases.
Contact Penney & Associates’ Experienced Trial Lawyers
Rideshare accident cases require specialized knowledge of both personal injury law and the unique aspects of rideshare company policies. At Penney & Associates, our personal injury attorneys have successfully litigated complex rideshare accident cases, including securing substantial settlements against major companies like Lyft.
Don’t Face the Insurance Companies Alone
After a rideshare accident, you’ll likely face multiple insurance companies, each trying to minimize their payout or shift responsibility elsewhere. Insurance adjusters work for the company, not for you. Their goal is to reduce costs, which means paying you as little as possible for your injuries.
Having an experienced rideshare accident attorney from Penney & Associates by your side levels the playing field. We understand the tactics insurance companies use and how to counter them effectively to secure the compensation you deserve.
Get a Free Consultation Today
Don’t wait to get the legal representation you need. California law limits the time you have to file a claim. Contact us today at (800) 616-4529 or fill out the Contact Us form on our website to schedule your free consultation. Our experienced rideshare accident attorneys are ready to fight for your rights.
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