Rideshare usage from apps like Uber and Lyft, otherwise referred to as Transportation Network Providers (TNPs), is an increasingly common mode of transportation. In November 2024, 58,498 drivers carried out more than 7.5 million passenger trips for TNPs in Chicago. This technology coupled with increased consumer liabilities, increases the legal challenges presented by personal injury suits.
Drivers from rideshare apps are classified as independent contractors by Uber and Lyft. This creates another party, which complicates how insurance companies view liability when a crash does happen. So here I’ll break down the complexities of corporate insurance, how it affects insurance claims, and how we can help you determine next steps in the event that you’re injured while using a rideshare app.
If You’re Injured in a Rideshare, Get Medical Help and Report the Accident First
Calling 911 and seeking medical care is the first step in prioritizing your personal safety and building a case. Generating a police report documents the incident, which is crucial for insurance and legal claims. Passengers, pedestrians, and other drivers all have the right to report the incident. After seeking proper medical care, I recommend taking photos, driver’s app information, license plates, and any witnesses. This information will be crucial in developing your case and determining liability amongst the parties involved.
Understanding Who May Be Liable
There are three main parties who may be liable for damages if you are a passenger injured while using a rideshare app:
- The Rideshare Driver: if their negligence caused the crash.
- Another Driver: if a third-party driver caused the collision.
- Uber or Lyft (Corporate Liability): only under certain conditions – typically when the driver is “on the clock.”
This differs from traditional car accidents due to the unique employment status of TNP Drivers.
Uber and Lyft classify drivers as independent contractors because of flexible scheduling, driver control, and cost-saving measures. This is why individual drivers use their own vehicles, pay for their own gas and maintenance, and are responsible for their own business expenses. While the driver’s independent contractor status reduces overhead for the Uber and Lyft corporations, it creates complications when determining liability.
How Liability Is Determined in Illinois Rideshare Accidents
The “Three Periods” of Rideshare Coverage
Uber and Lyft have policies in place to determine liability in the unfortunate event of an accident using their platform. The scope of their insurance coverage depends on the three types of driver’s app status.
Period 1: App On – Awaiting a Ride Request
Status: The driver is logged into the digital network but has not yet accepted a specific request.
- Primary Coverage: The driver’s personal insurance policy.
- TNC Contingent Coverage: Under 625 ILCS 57/10(b), the rideshare company must provide contingent liability coverage if the driver’s personal policy denies the claim (which is common due to “commercial use” exclusions).
- Mandated Limits:
- $50,000 for death and personal injury per person
- $100,000 for death and personal injury per incident
- $25,000 for property damage
- Context: This period accounts for approximately 29% of average shift time and 33% of miles driven.
Period 2: Ride Accepted – En Route to Pick Up
Status: The driver has accepted a ride request and is traveling to meet the passenger.
- Coverage Type: Primary Commercial Liability.
- Mandated Limits: Under 625 ILCS 57/10(c), the moment a ride is accepted, the coverage jumps to a $1 million combined single limit for death, personal injury, and property damage.
- Unlike Period 1, this coverage is primary and does not require a denial from a personal insurance carrier to activate.
- Context: This period accounts for 21% of shift time and 11% of miles driven.
Period 3: Passenger En Route – Trip in Progress
Status: The passenger is in the vehicle from the moment of entry until they exit at their destination.
- Coverage Type: Primary Commercial Liability.
- Mandated Limits: The $1 million primary liability policy remains in effect.
- In Illinois, the rideshare company must also provide at least $50,000 in Uninsured/Underinsured Motorist (UM/UIM) coverage during this period to protect passengers if they are hit by an at-fault driver with little or no insurance.
- Context: This is the most active phase, accounting for 50% of shift time and 56% of miles driven.
Arbitration Clauses in Lyft and Uber User Agreements
Nearly every app or program you install requires you to acknowledge and accept the user agreement before use. Rideshare apps are no different; in fact, they have fairly comprehensive language that protects them and thus can present obstacles to gaining compensation in the event of a crash while using their app.
This is because they include “forced arbitration” clauses. So when you install the app, inevitably scroll past the legal jargon and click ‘accept’, you’ve just forfeited a number of rights, including your right to a jury trial, ability to join class action suits, and more. Or at least that’s their intent.
However, all hope is not lost. Arbitration clauses aren’t always enforceable, especially in personal injury cases. This depends on a few factors:
- Scope: Some courts argue that an injury is not covered by an arbitration clause because you’re not disputing the service itself but rather immediate bodily harm.
- Who’s being sued: Uber or Lyft couldn’t care less if you sue the driver. They only care if you try to sue them.
- How the clause is written: In some instances, courts will accept that some arbitration clauses are too unfair to enforce, thus rendering them ineffective.
The bottom line: Rideshare apps do their best to include language in their license agreements to disincentivize filing a lawsuit against them. But it’s always still worth exploring your options by contacting a skilled attorney.
What Are Your Legal Options After A Rideshare Accident?
I recommend two courses of action, depending on insurance’s coverage:
- Filing an Insurance Claim
- Passengers can file directly with Uber/Lyft’s insurer
- Drivers may file through own insurer or Uber/Lyft depending on fault period
- Pedestrians or third parties can file against the driver or Uber/Lyft, if coverage applies.
- Filing a Personal Injury Lawsuit
- When insurance won’t cover full damages or denies liability
- Possible damages: medical bills, lost wages, pain and suffering, property damage
- A personal injury lawyer understands rideshare claims and Illinois law nuances and is important to advocate for yourself.
What to Do Immediately After a Rideshare Accident
If you’ve been injured in a rideshare accident, your first priority should be to call 911 and seek immediate medical attention, even if your injuries seem minor at first. Once you’re safe, report the accident through the Uber or Lyft app and take screenshots of all relevant information for your records. Gather contact and insurance details from the driver, as well as contact information from any witnesses who saw what happened. Document the scene thoroughly by taking photos of all vehicles involved, the surrounding area, visible injuries, and any road conditions or hazards that may have contributed to the crash. It’s crucial to avoid giving recorded statements or signing any documents from insurance companies before speaking with an attorney, as these statements can be used to minimize your claim later.
Finally, contact an experienced Chicago personal injury lawyer as soon as possible to protect your rights and ensure you receive full compensation for your medical bills, lost wages, and pain and suffering.
Brian Lewis is Here to Help
If you or a loved one has experienced an accident in an Uber/Lyft, give me a call today. I’ve helped clients receive millions of dollars in damages to cover medical bills, lost wages, and more.
Throughout my career, I’ve dealt with transportation liabilities, insurance companies, and medical experts. I’ll build your case for you and connect with experts on your behalf so you can focus on what matters most: getting on the road to recovery.
The sooner you file a claim, the better. Don’t wait, get a free consultation today.
