When an individual driving a rideshare vehicle collides with another vehicle, sometimes, there is an automatic assumption that the rideshare company is liable for the damages caused. For this reason, when the victim of the crash discovers the insurance company representing the rideshare company has denied their claim — they are left puzzled. To ensure you are informed, it is important to understand that rideshare companies are not always liable for damages; learn why.
Independent Contractor Loophole
In terms of liability, the relationship an individual has with a company determines the level of responsibility the company has regarding its actions. Employees generally generate the highest level of responsibility for a company. For this reason, rideshare companies employ their drivers as independent contractors.
In short, this employment designation helps to minimize the responsibility and liability these companies have over their drivers' actions, which makes it easier for these companies to escape liability in the event a driver is involved in an accident. As such, they may use this designation to deny a claim.
Driving Status Determination
Rideshare companies rely on the status of the driver at the time of the accident to determine liability. There are typically three main statutes; a driver who is not currently operating as a rideshare driver, a driver that is en route to pick up a rideshare customer, and a driver who currently has a rideshare customer in their vehicle.
Typically, rideshare companies will deny an insurance claim if the driver is not either en route to pick up a rider or has a driver present in the vehicle at the time of the crash. Any other time, the vehicle is deemed to be operating for personal use, which leaves the rideshare company without responsibility.
State Law Application
Keep in mind that the state law always applies, and the attorney's representing a rideshare company will not hesitate to use the law to deny a claim. For example, consider an accident in a no-fault state. With the no-fault measure, essentially no individual driver is considered at-fault in an accident.
Instead, each party in an accident is expected to file a claim with their own insurance company to recover any losses they experience. If the rideshare company can use any law to escape liability, they will.
The abovementioned scenarios represent some of the times when a rideshare company may not be liable, but it is important to understand there is always a gray area. As a result, it is best to speak with a rideshare accident attorney who can assess your case and determine liability.
Share23 August 2022
When you are involved in a messy car accident, things can get complicated fast. In addition to proving who was at fault, you might also have to worry about healing. However, you don't have to endure long phone calls and complicated insurance paperwork on your own. Hiring an attorney is the key to remaining strong during the aftermath of a car accident. As you think about your own situation, try to figure out if you can do things on your own. If you feel like you need a little help, don't be afraid to talk with an attorney. The information on this website should help you to decide how legal counsel can help you.
