The rideshare and app-based service industry has skyrocketed and taken off over the past several years. These days it is not uncommon for an individual to use services such as Uber and Lyft to get around much like they would with their own vehicle, bike or a taxi. With the increased use of these services, however, accidents involving cars who ride for Uber and Lyft have become more common.

Companies such as Uber, Lyft, Postmates, UberEats Door Dash, Instacart, and Grubhub are defined as Transportation Network Carriers, or more simply, TNCs. These are different than Taxis or Limousines which are called Transportation Charter-Party, so named for the charter-party permit or certificate and carrier number assigned to a specific vehicle and marked on the rear of those vehicles with “TCP” followed by a series of numbers.

TNCs are different in that they use an online-enabled platform to connect passengers with drivers using the drivers own personal vehicles, or drivers that are now known as “gig workers”. At the same time, TNCs are considered common carriers, a legal term for those that are charged with the duty of utmost care and diligence for the safe carriage of passengers. Therefore, these TNCs are also required by law to carry liability and insurance coverage for their passengers involved in accidents.

Uber, Lyft, and other rideshare companies determine how they handle an auto accident claim in California and the applicable policy limits of coverage as required by the California Public Utilities Commission based on 3 scenarios:

• A car accident occurs when the app-based driver’s rideshare mobile application is logged in but the driver has not accepted a pre-arranged ride and does not have a passenger in the vehicle. In these situations, TNCs must carry liability coverage of at least $50,000 for death and personal injury per person, and $100,000 per incident, and $30,000 for property damage.
• A car accident occurs when the app-based driver’s rideshare mobile application is logged in and the driver has accepted a pre-arranged ride and en route to pick up the rider for the pre-arranged ride. In these situations, TNCs must carry liability coverage of $1,000,000 for death, personal injury, and property damage.
• A car accident occurs when the app-based driver’s rideshare mobile application is logged in, the driver has accepted a pre-arranged ride and the driver is transporting the passenger. In these situations, TNCs must carry liability coverage of $1,000,000 for death, personal injury, and property damage. In addition, the TNC must carry $1,000,000 of uninsured motorist coverage.

Depending on which scenario an accident falls under, dealing with Uber or Lyft and other rideshare app-based companies after an accident can be very tricky. Quite often, these companies will attempt to deny liability for claims that injured persons may file. That is why it is absolutely crucial to obtain representation from an experienced law firm and attorneys who have dealt with rideshare companies and TNCs such as Uber and Lyft. The Law Collective has filed and litigated numerous cases such as these and will drive your case to the final destination earning you or your loved ones justice at the hands of another person’s negligence.