UBER/LYFT RIDE-SHARE ACCIDENTS: WHO PAYS FOR INJURIES?

Since their arrival in Chicago in 2011, ride-share services, such as Uber and Lyft  (also known as Transportation Network Providers (TNPs)) have had a dramatic impact on the traditional passenger transportation system which, for decades, was based primarily on taxicabs and on-call limo services. Nowadays, instead of hailing a cab, those seeking a ride use their smartphones to arrange a pick-up from a local driver. The popularity of these ride-share services shows no signs of abatement as people continue to seek cheaper and more convenient means of transportation. Recent analysis of TNP data submitted to the City of Chicago revealed that between 2015 and 2018, the annual number of ride-share trips in Chicago had grown 271 percent, and the TNP miles traveled with passengers had increased 344 percent.*  While some drivers earn a full-time living providing this transportation service, others use it as a “side hustle” to earn some extra income. 

So what happens when a ride-share driver’s negligence causes an accident with resulting injuries to passengers and/or other motorists or pedestrians? Who bears the responsibility for these car accidents and who pays for the damages? Well, it is a bit complicated, but the answers to these questions begins with analyzing the ride-share driver’s activity/status at the time the ride-share crash occurred. The following is a brief summary of how the ride-share driver’s activity will determine the insurance coverage available to those who have been injured in a wreck involving a TNP driver.   

 Insurance Coverage for Ride-Share Accidents   

The State of Illinois requires TNPs to have liability insurance of at least $ 50,000 for death and personal injury per person, $100,000 for death or personal injury per incident and $ 25,000 for property damage.* This requirement is double the basic liability insurance required for all Illinois drivers, which is $25,000 per person and $50,000 per incident. This coverage is contingent and applies in the event that the driver’s own insurance excludes coverage for ride-share crashes, which is typical of personal auto insurance policies where the driver has not purchased separate ride-share coverage. Many ride-share drivers end up purchasing separate ride-share insurance policies for this very reason. The TNP’s insurance coverage of “50/100/25” also applies if a driver’s insurance policy fails to meet these basic policy limits.

The “50/100/25” insurance coverage applies for the time that a driver is logged into the TNC platform waiting to accept a ride request, but is not transporting a passenger. If the driver is not logged into the TNC platform, the insurance coverage from the TNP is not applicable.  

So what is the applicable insurance coverage once the ride-share driver is logged into the TNC application, has accepted a ride-share request via the app, and is en route to the pick-up address or transporting the ride-share passenger to the final destination?   

Illinois law states that the liability insurance coverage amount must be $ 1,000,000 for a combined single limit (per accident) for death, personal injury and property damage, as well as $ 50,000 for uninsured and underinsured motorist coverage. These insurance requirements may be satisfied by the driver’s policy, the TNC’s policy, or some combination of both.           

It is important to note that for these ride-share insurance policies to be in effect the ride-share driver must be logged into the app and available to accept ride-share requests, is en route to pick up a passenger or actively transporting a passenger. If the driver is not logged into the app at the time of accident, the driver is covered by the driver’s own personal auto insurance policy, not the TNPs. 

Ultimately, determining who is liable for damages caused in any auto accident can be complicated. Claims against ride-share drivers are even more complex because the insurance policies available to compensate those injured vary, based on the driver’s activity/status at the time of the crash. It is no wonder that ride-share accident claims can be difficult to resolve without the assistance of an experienced ride-share accident attorney who is familiar with the laws governing Transportation Network Providers, and will conduct the necessary investigation to determine the insurance policies applicable for the accident.    

If you have been injured in an accident with a driver for Uber, Lyft or another ride-sharing service, contact us today at (312)357-0733 to schedule your free consultation. 

Sources: **Transportation Network Providers Act, 625 ILCS 57/1 et seq.

Sources: *City of Chicago, Transportation Network Providers and Congestion in The City of Chicago, Report Dated October 18, 2019