Can I Sue an Uber Driver or Rideshare Company?

In many states, rideshare drivers are considered to be independent of the company, so your claim would lie against the driver instead of the company. But in some states, rideshare drivers act as legal employees of the company, so the company would be responsible for the negligence of its drivers.

If you live in what’s called a no-fault state, you wouldn’t start by suing either the rideshare driver or the rideshare company. You would begin the process by filing a claim with your own insurance company. It’s crucial to notify your insurance company promptly if you are in an accident.

Personal injury cases can be complex. You must provide medical evidence of the nature and extent of your injuries, which requires gathering and reviewing a lot of documents. Then you need to persuade a judge and jury that your claims justify compensation.

A personal injury attorney can guide you through this process. Because these cases can be complex, consulting a rideshare accident attorney is often the best way to protect your rights. They can also help maximize compensation.

What Is a Rideshare Company?

A rideshare service matches customers with drivers for hire using an app or a website. You create an account, sign in, and plug in your credit card. When you sign into the rideshare app, you enter your destination. A rideshare driver accepts your ride and picks you up. When you get to your destination, your card is automatically charged.

The two largest rideshare companies, Uber and Lyft, make up nearly 100% of the U.S. market.

Motor Vehicle Accidents With Rideshare Drivers

As more Americans rideshare, companies have had to increase their drivers. Uber has about 7 million drivers, and Lyft has over 2 million. With this many rideshare vehicles on the road, the number of motor vehicle accidents has increased. For example, Lyft reported a 31% increase in motor vehicle fatalities in its 2020-2022 Annual Safety Report.

Rideshare accidents can involve any of the causes of other car accidents, such as:

• Reckless driving, especially if the driver is speeding or using risky maneuvers to complete ride requests as quickly as possible
• Drunk driving, even if the driver was still on the job
• Distracted driving, such as being distracted by their phone or chatting with the rideshare passenger

But accidents where a rideshare driver is the responsible party present a few challenges. A rideshare accident claim has unique issues with insurance coverage and liability. These issues can affect payouts for vehicle repairs, medical care, lost wages, and other losses.

Insurance in an Uber/Lyft Accident

All states require drivers to carry a personal insurance policy. But Uber drivers also use their personal vehicles for business purposes. A standard policy usually doesn’t cover this type of commercial driving. Companies like Uber carry some liability insurance for drivers, but the coverage tends to be basic.

That’s why rideshare drivers often buy a special type of insurance coverage called a commercial use endorsement, which applies while they’re working. Companies may also require commercial auto insurance for certain categories of drivers.

Underinsured Rideshare Drivers

But consider this example: You’re on your way home from work. As you’re driving through an intersection, another driver runs the red light and hits the side of your vehicle. You’re alive, but you have some minor injuries and your car is a wreck.

Next, you grab your insurance card, get out of the car, and approach the other driver. They are an Uber driver carrying a passenger to the airport. You ask for their auto insurance information and they tell you that they have personal insurance, but they didn’t buy a commercial use endorsement as part of their policy. This can mean they don’t have liability coverage for the Uber accident.

You may think this means you’re out of luck, but you have options. You may not have to pay for the damage to your car and your medical bills yourself. Depending on where you live, you may be able to get the rideshare company to cover these expenses.

Drivers as Employees vs. Independent Contractors

It’s also important to understand the legal difference between an employee and an independent contractor.

An employee is hired by an employer to do work. In general, the employer says how that work is to be performed. They get to determine when the work will be done and the manner in which it will be done.

In contrast, an independent contractor, while hired to do work, gets to say how the work will be done. They can set their own hours, use their own tools, and decide how to perform the work.

How the Rideshare Driver’s Classification Affects a Case

The option to sue a company for its driver’s actions depends on whether that driver is an employee or an independent contractor. A company is not legally responsible for harm caused by an independent contractor.

Under the law, an employer is responsible for the negligence of its employee who was acting within the scope of their employment. In other words, a company is legally responsible for harm caused by one of its employees on the job. Lawyers call this respondeat superior.

How Are Drivers Classified?

A court will make its own determination, based on all the facts and circumstances, whether a driver is an employee or not. State law also plays a role.

Rideshare companies generally describe Uber and Lyft drivers as contractors. Yet, this classification is not up to the rideshare company to decide. It doesn’t matter if they categorize their drivers as independent contractors.

Rideshare drivers exercise substantial control over the work they do, such as:

• Using their own cars
• Paying for their own gas
• Deciding when they will work
• Freely declining or accepting fares
• Determining, in conjunction with the passenger, the route they are going to take

That’s why many states will also view these drivers as independent contractors. They won’t allow you to recover from Uber or Uber’s insurance.

But in some states, a rideshare driver may be considered an employee in certain circumstances. Again, that will depend on the amount of control the company exercised over the driver at the time of the accident.

So, don’t rule out the chance of recovering from Uber if one of its drivers hits you on the road. An experienced accident lawyer can help you evaluate the facts of your specific case.

Legal Options if You’re Injured by a Rideshare Driver

You may have an uphill battle in a lawsuit against Uber, but that doesn’t mean the costs are going to come out of your own pocket. You may be able to get your own insurance company or the driver to pay for your damages.

With either of the two options below, the goal is to recover fair compensation. That’s true no matter which driver’s insurance ultimately pays the rideshare accident claim. If you have a serious injury, your medical expenses and other losses will likely be a heavy financial burden without this compensation. When a lot is at stake, getting legal representation can help you seek a fair settlement or award.

File a No-Fault Insurance Claim

If you live in a no-fault state, your insurance policy covers your damages regardless of who is at fault.

In some states, uninsured motorist (UM) and underinsured motorist coverage (UIM) is mandatory. This means that if you get in an accident with a driver who doesn’t have insurance, your own insurance company will pay for your property damage and injuries.

If you’re in a no-fault state, you don’t need to worry about suing the rideshare company. You would just file an insurance claim with your insurance carrier. Make sure you notify them of the accident as soon as possible. If you don’t, they might deny your claim.

Before you agree to settle your claim, you may want to speak with a personal injury attorney. They can tell you if the amount the insurance company is offering is fair. If it isn’t, they can negotiate on your behalf for a better deal.

Sue the Driver

If you don’t live in a no-fault insurance state, you could sue the rideshare driver.

Unlike in the example accident above, the driver may have paid for the commercial use endorsement. If so, they would have insurance coverage for the accident. Rideshare drivers are often required by the companies to pay for this extra endorsement, so it is quite possible they will have it.

If the rideshare driver doesn’t have liability insurance, that doesn’t mean they are off the hook. They are still responsible for the damages they caused, regardless of whether they paid for insurance.

If you take the driver to court and win a judgment, they will have to pay you out of whatever assets they have. You also might be able to garnish their wages until the judgment is paid. A good collections attorney could guide you through that process.

Get Advice on Whether To Sue in a Personal Injury Case

Depending on where you live, you may be able to recover from a rideshare company if one of their drivers causes you harm. The rideshare company will have financial resources beyond those of the driver, so chances are better that you will be compensated to the fullest extent for your losses if you bring your case against them. To be successful, you will need to persuade a judge that the driver is an employee and not an independent contractor.

Given the complexities of this type of case, you may want an experienced personal injury lawyer or car accident lawyer on your side if you’re involved in a rideshare accident. An experienced attorney can provide valuable legal advice about your options. They can also represent you in court if you do decide to bring a personal injury claim. If one of your loved ones is killed in a rideshare accident, an attorney can bring a wrongful death case.