Ridesharing services like Uber and Lyft are becoming extremely popular transportation options for people of all ages. The service works like this: You need a ride to/from a location. You contact a ridesharing service from your smart phone (via an app). For a fee (that you usually pay for through your app), a private driver will pick you up in their personal car and bring you to your desired location. The service tends to be cheaper than a taxi or limo and usually more convenient, accessible, and reliable.
Recently, the ridesharing service, Lyft, experienced its first deadly accident in the Sacramento area. Two individuals decided to use the service on Halloween as a safer alternative to driving themselves. The driver of the Lyft vehicle got in a car accident and one of the passengers was killed.
While this service seems ideal in many respects, it raises questions about driver and passenger insurance coverage. Deputy California Insurance Commissioner Chris Shultz was asked if there was insurance to cover a ridesharing passenger:
“In many parts of California you have better coverage available to you as a passenger in one of these services, than you would in a Taxi,” he said. Uber and Lyft currently carry $1 million in liability insurance. By comparison, a limousine service is required to only have $750,000 in insurance. –https://sacramento.cbslocal.com
Additionally, California recently passed laws that require ridesharing companies to provide $1 million in liability insurance for their drivers even when they do not have a passenger in their car. While these numbers should give ridesharing passengers some peace of mind, you can expect more growing pains in this fledgling industry.
At Eason & Tambornini, A Law Corporation, your safety as a ridesharing passenger is important to us. If you’re new to ridesharing and have questions about this industry or have been a passenger in an accident involving a ridesharing vehicle, contact us today. Our trusted group of car accident lawyers will help you with your liability questions and help you receive compensation for your injuries.
