Why Rideshare Accident Lawsuits Are More Complicated Than Typical Car Accident Claims

Key Takeaways:

• A rideshare accident can involve several insurance policies at once, and the driver, the rideshare company (known legally as a transportation network company, or TNC), or a third-party motorist may share liability.
• Coverage depends on the driver’s app status, which determines whether the driver’s personal coverage or the rideshare company’s insurance applies.
• Screenshots, a police report, and medical records help protect your claim.

Rideshare platforms aren’t just a convenience; they’ve essentially become a pillar of Philadelphia’s daily transit infrastructure. Thousands of people use various rideshare apps every day to get around the city. 

What people may not realize when they use a rideshare service, or transportation network company (TNC), as they’re legally called in Pennsylvania, is that they become passengers in a complex insurance network. For example, a rideshare accident lawsuit can simultaneously involve:

• The rideshare company’s corporate commercial policy.
• The rideshare driver’s personal auto insurer.
• The insurance company of any other at-fault motorist involved.
• Your own personal auto insurance policy. 

Navigating this complex framework to pursue a rideshare accident settlement is difficult under ideal circumstances; attempting it while injured and recovering is a monumental feat. Filing a Lyft or Uber accident claim involves sorting out liability, tracking rideshare company (TNC) insurance changes throughout a ride, and dealing with multiple insurers, all while trying to protect the value of your lawsuit. 

No Win, No Fee

A rideshare accident lawsuit is intimidating enough without also having to deal with attorney fees. Segal, Berk, Gaines & Liss requires no upfront costs to file or argue your lawsuit, whether at a settlement conference or in a courtroom. We operate on a no win, no fee policy, meaning you don’t pay unless you win.

Sorting Out Liability in a Rideshare Accident Lawsuit

Pennsylvania uses a modified comparative negligence statute to help determine and assign fault in personal injury claims. It works by breaking fault into contributory factors or actions and assigning them a percentage of the blame. As a passenger, you likely don’t share any of the blame for a rideshare accident, but determining liability or fault across the rideshare driver, the larger TNC, and third-party actors is key to filing your personal injury claim.

Evaluating the Driver’s Liability

As the one in control of the vehicle, the driver is the primary focus for lawsuits and compensation. Consider the driver’s behaviors during the ride:

• Were they speeding?
• Did they run a red traffic light?
• Were they tailgating?
• Did they violate any standard Pennsylvania traffic laws?

A unique distraction for rideshare operators is the TNC app. The driver may interact with their phone to accept a future ride, check routes, or locate passenger drop-off zones. This digital distraction often serves as direct evidence of operator negligence in a rideshare accident lawsuit.

Assessing the TNC’s Liability

Assigning fault and filing a Lyft or Uber accident claim is challenging because they usually don’t hire drivers as employees but as independent contractors. This legal distinction often allows the corporations to deny direct fault; however, because these entities must maintain commercial insurance policies, it’s still possible to go after the rideshare company’s (TNC) insurance companies, depending on driver status.

Gauging Third-Party Drivers’ Liability

In many rideshare accidents, the fault lies entirely or partially with an outside, third-party driver. If another motorist rear-ends the rideshare vehicle, fails to yield the right-of-way, or is driving under the influence, then their bodily injury liability insurance becomes the target of your rideshare accident lawsuit.

Third-party incidents become more complicated when the at-fault motorist flees the scene or carries insufficient insurance. For these circumstances, compensation efforts target a TNC’s Uninsured or Underinsured Motorist (UM/UIM) protection, if they carry it, to cover a passenger’s damages.

Because of the potential complexity of fault, work with an experienced attorney. Segal, Berk, Gaines & Liss can help you target the correct parties, strengthening your suit and compensation argument.

Tracking Rideshare Company (TNC) Insurance by Driver Status

Under Philadelphia (53 Pa.C.S. § 57A07) and Pennsylvania (66 Pa.C.S. § 2603.1) law, a rideshare driver’s digital activity status dictates how the company’s insurance applies, including coverage limits. For the purposes of your rideshare accident lawsuit, a TNC divides a driver’s status into three distinct insurance phases.

1. When the App Is Open

A Lyft or Uber accident claim can’t target the primary service’s commercial insurance policy if the driver has the app turned off. Coverage for the TNC only begins when the app is on, the driver is logged in, and they are active, available, and waiting for a match. During this active waiting phase, TNC insurance mandates require liability coverage:

• $50,000 for bodily injury or death per person
• $100,000 per accident
• $25,000 for property damage protection

2. When a Match Is Accepted

The moment a driver accepts a passenger ride and is actively driving to the pickup location, your rideshare accident lawsuit can pursue a higher level of compensation. Because the ride enters a fully active commercial phase, the rideshare’s insurance switches to higher coverage limits:

• $500,000 for death, bodily injury, and property damage
• $25,000 for passenger and pedestrian medical benefits
• $5,000 for driver medical benefits

3. When a Passenger Is in the Vehicle

From the exact moment a passenger enters a rideshare vehicle until they safely exit at their destination, the trip becomes an active ride. This phase maintains the same level of protection and compensation as phase 2, but this phase also triggers UM/UIM coverage for TNCs that carry it, protecting passengers against ill-prepared third parties. 

Protecting Your Claim Against Multiple Insurers

A Lyft or Uber accident claim, or any rideshare accident lawsuit, requires disciplined responses to TNC insurance companies and third-party auto insurers. Never provide a recorded statement and request all communication in writing. It’s typically wise to hire an attorney and have all communication go through them.

Beyond communication, you’ll want to take immediate screenshots of the active rideshare screen with the driver’s name, photo, and vehicle’s make, model, and license plate. Preserve the digital trip receipt and route information.

Call 911 or request dispatch from local law enforcement. Responding officers interview accident victims, witnesses, and drivers. They’ll also document the scene in an official crash report.

Next, go to the emergency room or schedule an appointment with your primary care physician. You want to create a medical record of the accident and any injuries for your rideshare accident lawsuit. Be sure that any follow-ups, surgeries, or rehabilitation sessions list the accident as a source of the injury.

Getting Help With Your Lawsuit

Recovering from an accident is a full-time job on its own; managing claims against a driver, a TNC, and multiple insurers on top of it is more than anyone should carry alone. At Segal, Berk, Gaines & Liss, a partner takes on your rideshare accident lawsuit from the first call to the final resolution. Contact us today to schedule a free consultation in person or over Zoom, whichever is more convenient. 

About Derek Liss, Esq.