What You Can Expect If You’re in a Crash With Uber or Lyft

Rideshare companies such as Uber and Lyft offer convenience and affordability to travelers worldwide, but they are not without risks. A number of studies indicate that there has been a 3% increase in traffic accidents and fatalities since 2011, when rideshares first became commercially available.

When you’re involved in a motor vehicle accident in New Jersey, which has a no-fault system, you’ll typically turn to your own insurance company to recover most, if not all, of your losses. However, rideshare operators in New Jersey are required to carry insurance. Here’s how it works:

• If the driver does not have the app turned on—When a driver is in an accident while the Uber or Lyft app is turned off, their only potential coverage is under their own personal motor vehicle insurance policy. It does not matter if the driver was parked at a place where they typically take rides, such as an airport parking lot. If you’re in such an accident in New Jersey, you will need to look exclusively at your own insurance policy.
• If the driver has the app open, but has not been matched with a passenger—In such situations, the rideshare company’s insurance typically provides only liability coverage, the required limits of which vary from state to state. In New Jersey, the driver must have a minimum of $50,000 in injury/death coverage per person, $100,000 in injury/death coverage per incident, and $25,000 for property damage.
• If the driver has accepted a fare or is actively transporting a passenger—For such situations, rideshare companies must maintain a minimum of $1.5 million in coverage per incident. Furthermore, if the at-fault party does not have sufficient insurance coverage, the Uber policy allows for uninsured and underinsured motorists coverage.

Contact the Law Offices of David J. Karbasian, PC

Send us an email today or call us at 856-667-4666 / 856-600-HURT to schedule an appointment to discuss your personal injury accident claim. Evening and weekend consultations are available upon request. We can come to your home or the hospital to meet with you, if necessary.