Rideshare Accidents

A rideshare is an arrangement similar to a taxi where passengers request a ride for a fee, usually via a website or app, and the driver uses their private vehicle for the trip. Unlike most taxis, however, rideshares cannot be hailed from the street, and the driver is not an employee driving a taxi company vehicle therefore different laws apply. Lyft and Uber are popular rideshare companies in the U.S.

TNC stands for transportation network company, which is the technical term for a rideshare under Delaware law.

Yes. Rideshare drivers must obtain a permit from the Delaware Department of Transportation’s Delaware Transit Corporation, meet certain requirements for the permit, and pay an annual fee. 

In Delaware, there are specific insurance requirements for rideshare drivers. The insurance requirements are different depending on whether the driver has a passenger in their vehicle or is simply logged into the TNC network awaiting a passenger request.

When a driver is logged on to the TNC digital network and is available to receive transportation requests but does not have a passenger, the driver, the TNC, or a combination of both, must carry:

• Primary automobile liability insurance of at least $50,000 for death and bodily injury per person, $100,000 for death and bodily injury per incident, and $25,000 for property damage; and
• Personal injury protection (PIP) benefits as for any Delaware vehicle owner, which is currently a minimum of $15,000 per person injured in an accident and $30,000 per accident.

When a rideshare driver has a passenger in their vehicle, the driver, the TNC, or a combination of both, must carry:

• Primary automobile liability insurance of at least $1,000,000 for death, bodily injury and property damage;
• Personal injury protection (PIP) benefits as for any Delaware vehicle owner, which is currently a minimum of $15,000 per person injured in an accident and $30,000 per accident; and
• Uninsured and underinsured motorist coverage of at least $1,000,000 for death, bodily injury, and property damage (effective April 14, 2023).

Some rideshare companies, such as Uber and Lyft, offer their drivers company-specific insurance policies. These policies differ from personal auto insurance policies and therefore should be carefully reviewed to understand coverage.

If you have been hurt in a rideshare accident, you should first tend to any injuries, and get to a safe place. If anyone is injured in the accident, call 911 to summon an ambulance, the police, and any other emergency services. Even if you think you only have minor injuries, you should seek medical attention as soon as possible after an accident. Some seemingly minor injuries can become more severe or aggravated, and your health is the first priority. A medical report is also important to any claim for compensation for your injuries.

When injuries have been tended to, you should gather evidence of the accident, including the name, contact details, and insurance details of your rideshare driver, contact details of anyone else involved in the accident, and photographs or videos of the scene of the accident. The police will also prepare a police report about the accident, which is usually available at a later date.

Finally, call an attorney. An experienced rideshare accident attorney, like the attorneys at Morris James, will be able to advise you on your rights and options under the law, and help you get compensation for your injuries. Rideshare accidents can be complicated because of the parties involved and the developing law in this field. If you do not get good legal advice, you could risk losing out on the compensation that you are entitled to by law.

If you are injured in a rideshare accident, you are entitled to certain benefits under the auto insurance policy of the rideshare driver or company. Their PIP insurance coverage should cover your medical bills (including pharmacy bills, ambulance fees, physical therapy bill, and other medical expenses) and lost wages and benefits up to at least the minimum PIP coverage limits of $15,000. PIP benefits will not compensate you for pain and suffering in an accident. To recover for pain and suffering, you would need to bring a claim for compensation against the liability insurer of the at-fault driver. If the driver or TNC’s PIP coverage is not sufficient to cover your losses, you may also be able to pursue a claim against the liability insurer of the at-fault driver.

Rideshare accidents can be complex because more parties are involved, there is a business relationship between the driver and the company, and the law in this area is relatively new. In a rideshare accident, there will be a rideshare driver, a rideshare company, and at least one passenger, as well as drivers and passengers in other vehicles. The insurance companies of each of these parties will also be involved. In addition, the legal relationship between the driver and rideshare company may affect the determination of who is at-fault in the accident, and/or who is liable for compensation. Each party and insurance company involved in the accident will try to avoid or reduce liability for these expenses, and will fight each other and you to protect their own interests. Meanwhile, you are dealing with injuries and mounting expenses from medical care and missed work as a result of the accident.

You need someone on your side who will represent your interests, and navigate the laws and relationships involved to get you the maximum compensation for your injuries while you focus on healing. An experienced rideshare accident attorney, like the attorneys at Morris James, understands the strategies that insurers use to try to reduce their exposure and will work hard to protect you from further loss.