Uber / Lyft Accident Liability

Uber and Lyft Avoid Accident Liability

Uber and Lyft, ride-sharing companies, have made billions in recent years. Their success is in part due to the fact that they are an app-based business and in today’s digital world that’s a plus. They contribute to the “sharing economy” but they also present complex liability issues like: (1) Are passengers covered by Uber/Lyft insurance? (2) Who is liable if an Uber driver hits another car or a pedestrian? (3) What happens if a third party is involved in the accident? There is currently no solution to these issues but California has pressured Uber and Lyft to eliminate ambiguities in their policies and regulations regarding insurance coverage.

Previous Collision Cases Effect Changes in Rideshare Company Policies

Due to past accidents involving Uber and/or Lyft, California Governor Jerry Brown, signed ridesharing insurance legislation requiring companies to cover drivers from the moment they turn on their app. Since then, many other state legislators have followed, making ride-sharing companies expand coverage to drivers who are logged into their apps at the time of a collision.