More people today use ride-share services, so accidents in Uber vehicles are more common than in years past. That’s why it’s essential to avoid falling for the most frequent Uber accident claim myths below.
With this information and your Uber accident attorney, you’ll have a better idea of what to do if the worst happens.
Uber’s $1 Million Policy Guarantees a Massive Settlement
Back in the day, Uber wasn’t on the hook for driving accidents because it argued its drivers were independent workers and not employees. But things have changed. Now, Uber has a $1 million liability policy for all of its drivers. But don’t get too excited: This doesn’t mean that accident victims will always enjoy a huge payout courtesy of Uber.
This $1 million is a secondary insurance policy, which means the driver’s policy is critical. Financial damages are usually only covered by Uber if the Uber worker had an active ride in its app when the accident happened.
If the Uber driver gets in a wreck while killing time, waiting for a rider to look for a vehicle, or even driving toward a rider, the Uber policy isn’t in effect. Uber drivers are at higher risk in a crash because they could lose their personal car insurance policy if their insurer thinks they were using their vehicle for work purposes.
Uber Always Is on the Hook If an Uber Driver Hits You
As noted earlier, the company’s policy only covers damages when the Uber driver was working when the wreck happened. This usually means they need to be carrying a passenger when the accident happened In other situations, the Uber driver’s own policy usually is in effect.
Most basic personal auto insurance policies have low limits. For example, if you broke your leg, lost two months of work, and have $25,000 of medical bills, the personal policy may not pay you enough. In that case, you’ll need to sue the driver personally. It’s questionable if they’ll have enough assets for you to get anything.
Uber Insurance Doesn’t Cover Drivers Because They’re Contractors
This myth comes from the murky area of insurance policy coverage that was real when Uber first hit the market. But now, Uber is usually liable for damages drivers cause, even if they’re independent contractors.
Uber does have insurance that covers the following, but it’s dependent on the situation, as described above:
- $50,000 for bodily damage per individual, if the driver app is active and they’re waiting for a rider
- $100,000 per auto accident for bodily harm, if the driver app is active and they’re waiting for a rider
- $1 million coverage for bodily injury, if the driver has a passenger who asked for a ride via the app
Uber Drivers All Have Clean Records
Theoretically, Uber performs background checks on its drivers. But in reality, many Uber drivers with criminal records have still gotten hired. An investigation in 2018 found 103 Uber drivers who had sexual abuse or assault charges against them.
It Doesn’t Matter Who is at Fault in an Uber Accident
If you’re hurt when driving for Uber, whether you’ll get a settlement depends on who’s liable for the crash.
When the other driver caused the accident – no matter the circumstances – you’ll have to get paid by their insurance policy for your injuries and property damage. If the other driver has no insurance, Uber will pay for your bodily injuries.
If you have collision and comprehensive coverage on your policy for property damage, Uber will pay the cash value of the damage after your deductible, whoever caused the crash.
If you caused a crash when you drove for Uber and suffered personal injuries, Uber insurance and your personal auto insurance will not cover you. Instead, you need to use your healthcare insurance to handle your costs.
Whether you’re a passenger or a driver in an Uber accident, it’s wise to understand the ins and outs of liability coverage. But things can get tricky, so remember to check with an attorney when in doubt.
Larry Alton is a professional blogger, writer, and researcher. A graduate of Iowa State University, he's now a full-time freelance writer and business consultant. Currently, Larry writes for Entrepreneur.com, Inc.com, and Forbes.com, among others. In addition to journalism, technical writing and in-depth research, he's also active in his community and spends weekends volunteering with a local non-profit literacy organization and rock climbing. Follow him on Twitter (@LarryAlton3), at LinkedIn.com/in/larryalton, and on his website, LarryAlton.com. Read Larry Alton's Reports — More Here