Rideshare accident claims are different from regular car accidents because they almost always involve multiple insurance policies with varying coverage limits. The responsible policy depends entirely on the driver's status in the app at the exact moment of the crash.
Unlike a standard two-car collision where you typically deal with one at-fault driver's insurance, a rideshare crash introduces at least three potential layers of coverage: the driver's personal policy, the rideshare company's limited liability policy, and the rideshare company's full $1 million commercial policy.
This structure is a direct result of rideshare drivers being classified as independent contractors, which complicates the question of who is legally responsible. Determining which policy applies is the central challenge, but it also creates multiple avenues to pursue the compensation available under the law for your medical bills, lost income, and pain and suffering.
If you have a question about your accident, call us. Our practice focuses on rideshare injury claims, and we provide clarity. Call LegalRideshare Injury Lawyers at (312) 767-7950.
Key Takeaways for Rideshare Accident Claims
- Rideshare accidents involve a three-tiered insurance system. Which policy applies depends entirely on the driver's activity in the app at the time of the crash.
- The driver's app status is the most important piece of evidence. This determines whether you file a claim against the driver's personal policy or the rideshare company's $1 million commercial policy.
- Digital evidence can prove your claim. Screenshots of your ride receipt and official company data are necessary to prove the driver's status and secure full compensation.
The Core Difference: A Three-Tiered Insurance System
In a typical car accident, the process is linear: you file a claim against the at-fault driver's single insurance policy. In a rideshare accident, the first question is always: "What was the driver doing in the app?"
The answer determines everything that follows. Rideshare companies like Uber and Lyft have created a complex, three-phase system to manage their liability.
Phase 1: The App Is Off
If the driver's app is off, they are not working for the rideshare company. Any accident is treated like a regular car crash. The only available insurance is the driver's personal auto policy. This presents a problem if the driver's personal policy has low limits or if they don't have insurance at all.
Phase 2: The App Is On, Driver Is Waiting for a Ride Request
The moment a driver turns the app on, they are officially "on the clock." Their personal car insurance likely stops covering them at this point, as most personal policies exclude commercial driving. The rideshare company's contingent liability coverage kicks in.
Per the Illinois Transportation Network Providers Act, this includes:
- $50,000 for death and bodily injury per person.
- $100,000 for death and bodily injury per incident.
- $25,000 for property damage.
Phase 3: Driver Has Accepted a Ride or Is Transporting a Passenger
Once a ride is accepted, the full commercial liability policy is active. This provides at least $1 million in third-party liability coverage. It also includes Uninsured/Underinsured Motorist (UM/UIM) coverage, which protects you if another at-fault driver has insufficient or no insurance. This is a protection many people don't know exists.
Why Does the Driver’s Status Matter So Much?
This tiered insurance system exists because of a legal concept called vicarious liability. Simply put, this principle sometimes holds an employer responsible for the actions of their employee.
To limit their responsibility, rideshare companies classify their drivers as independent contractors, not employees. This classification means the companies argue they are not directly responsible for a driver's negligence—the legal term for carelessness that causes harm.
What This Means for Your Claim:
- The Insurance Investigation: The insurers for the driver, the rideshare company, and any other involved parties will investigate the crash. Their goal is to find reasons to minimize the amount they pay on any claim. A key focus will be proving what phase the driver was in.
- The Burden of Proof: We must gather evidence to firmly place the driver in the correct phase. This isn't always straightforward. For example, a driver might quickly turn their app off after a crash to make it appear they were driving for personal reasons.
- Multiple Liable Parties: Unlike a standard accident, your claim might involve pursuing compensation from more than one insurance policy simultaneously. For instance, if another driver hits your Uber, we would deal with that driver's insurance and the rideshare company's UIM coverage.
- Local Nuances in Chicago: The city has its own regulations under the Chicago Municipal Code § 9-115 that supplement state law. These local rules add another layer of complexity to your claim.
How Does This Change the Claims Process from Home?
After a standard accident, you would typically report the crash to your insurer and the other driver's insurer. Here, the steps from home are different.
Don't:
- Give a recorded statement to any insurance adjuster without speaking to a lawyer first. Understand that adjusters are looking for information to minimize the payout. Our firm handles all communications with insurance companies on your behalf, ensuring your rights are protected from the start.
- Assume the police report contains all the necessary information. While a police report is required in Illinois for any crash involving injury under 625 ILCS 5/11-406, officers on the scene may not know to document the driver's app status. We frequently have to obtain electronic data directly from the rideshare company to confirm these details.
Do:
- Preserve any digital evidence you have. Take screenshots of your ride receipt from the Uber or Lyft app. This digital receipt is the strongest piece of evidence proving the driver was in Phase 3. Save any emails or in-app communications with the company.
- Seek consistent medical attention for your injuries. Gaps in treatment are used by insurance companies to argue your injuries aren't as severe as you claim or aren't related to the crash. Following your doctor's treatment plan creates a clear medical record that connects your injuries to the accident.
What Happens With Medical Bills While Your Claim Is Ongoing?
Most people don’t realize this until the bills start showing up: Uber and Lyft won’t pay anything upfront. Their insurance only pays at the end, after you’ve finished treatment, submitted documentation, and negotiated a settlement. Their insurance only pays once your case concludes with a settlement or verdict. So the question is: who covers your care in the meantime?
There are three common paths.
- You use your health insurance. If you have private health insurance or are covered through your employer, your treatment is usually billed through that first. But you still need to deal with co-pays, deductibles, and possibly out-of-network providers. And once your case settles, your health insurer may request reimbursement for what they paid. This is called a “subrogation lien.”
- You treat on a medical lien. If you don’t have insurance, or your policy doesn’t cover everything, we may be able to connect you with doctors who treat on a lien. This means they provide care now, but wait to get paid until your case resolves. They’ll place a formal lien on the eventual settlement, and we negotiate the final amount so more of the recovery goes to you.
- You use MedPay or PIP benefits, if available. Some auto insurance policies include Medical Payments (MedPay) or Personal Injury Protection (PIP). These benefits help cover immediate medical expenses regardless of who was at fault. They don’t exist in every state or policy, but when they do, they can help bridge the gap while your case is pending.
We help you manage all of this in the background. That includes coordinating with providers, reviewing every lien, and making sure the math works in your favor. You shouldn’t have to burn through your savings just to keep seeing a doctor.
How We Handle the Unique Challenges of a Rideshare Claim
Because our practice is focused on these specific types of cases, we have developed a process to address the challenges head-on.
- First, we issue a preservation letter. This is a formal legal notice sent to Uber or Lyft demanding they preserve all electronic data related to the trip. This includes GPS data, ride acceptance times, and communication logs. This step prevents evidence from being deleted.
- Next, we identify all potential sources of recovery. We analyze the accident to determine every available insurance policy. This could be the rideshare policy, the at-fault third party's policy, or even your own personal auto insurance for certain benefits. We map out the entire insurance landscape.
- Then, we manage all communications. The process is filled with paperwork and requests for statements. It's easy to get frustrated as medical bills pile up. Our team takes over these communications, so you focus on your recovery without the added stress of dealing with multiple adjusters.
- Finally, we build the case around the full value of your claim. Compensation isn't just about current medical bills. It's about future medical needs, lost earning capacity, and the pain and suffering that diminish aspects of your life. We work with medical and financial professionals to document the full extent of your damages before ever entering negotiations.
Frequently Asked Questions About Rideshare Accidents
What if I was a passenger and my Uber/Lyft driver was not at fault?
If another driver caused the crash, you would first file a claim against their insurance. If that driver is uninsured or their policy limits are too low to cover your injuries, we would then turn to the rideshare company's Uninsured/Underinsured Motorist (UIM) coverage, which is part of their $1 million policy.
I was driving my own car when a rideshare driver hit me. What should I do?
The process is the same. The key is to determine the rideshare driver's app status. Your claim will be against either their personal insurance or one of the rideshare company's policies. Document everything and contact a firm that handles these specific claims.
Can I sue Uber or Lyft directly?
It is very difficult to hold the company directly liable for the driver's actions because of their independent contractor status. Most claims are resolved through their insurance policies. A lawsuit may become necessary if the insurance company refuses to offer a fair settlement.
Does it matter if the accident happened in Chicago versus a suburb like Naperville?
While the state-level Transportation Network Providers Act applies everywhere in Illinois, Chicago has additional local ordinances. More importantly, a case filed in Cook County may proceed differently than one in DuPage or Will County due to local court rules and procedures. We handle cases throughout Illinois and understand these local differences.
How long do I have to file a claim in Illinois?
Generally, the statute of limitations for personal injury claims in Illinois is two years from the date of the accident. However, the process of investigating and negotiating with multiple insurance companies takes time. It is always best to begin the process as soon as you are able.
What should I do immediately after a rideshare accident?
First, ensure everyone is safe and call 911 to report the crash and request medical assistance for anyone who needs it. If you can do so safely, take photos and videos of the accident scene, vehicle damage, and any visible injuries. Exchange contact and insurance information with all drivers involved, but avoid discussing who was at fault.
Take a screenshot of your ride information in the Uber or Lyft app. Also seek a medical evaluation as soon as possible, as some serious injuries are not immediately apparent.
How is pain and suffering calculated in a rideshare accident claim?
Illinois law does not use a fixed formula to calculate pain and suffering. Instead, these non-economic damages compensate you for the physical pain, emotional distress, and loss of enjoyment of life your injuries caused.
To determine a value, we analyze the severity and permanency of your injuries, the total cost of your medical treatment, and the overall impact on your daily life, career, and relationships. We then build a persuasive case to justify this figure to the insurance company based on outcomes in similar cases.
Your Next Step Is a Simple Conversation
We handle rideshare accident claims across Chicago and Illinois, and we are familiar with the courts, the insurance policies, and the challenges you face.
You don’t need to have all the answers to make the call. One conversation is enough to get started and figure out who should pay for your injuries.
Call LegalRideshare Injury Lawyers for a free consultation at (312) 767-7950.