Is the Driver or the Company at Fault in a Rideshare Accident?

Ridesharing is now a popular way to get around town. Companies like Uber and Lyft employ millions of drivers across the country, offering commuters convenience and accessibility. However, with the increase in rideshare vehicles on the roadways, problems concerning liability have emerged.

When a rideshare accident does occur, is it the driver who is liable for the accident or the company that they work for, like Uber or Lyft? In this article, the Oakland, CA car accident attorneys at Venardi Zurada will discuss how lawsuits against rideshare drivers proceed and whether major companies like Uber and Lyft are liable for them.

Understanding the rideshare model 

Ridesharing companies such as Uber and Lyft operate on a model where everyday people can use their own personal vehicles to transport passengers for a fee. The drivers are not considered employees of Uber or Lyft, but rather independent contractors who are connected to the ridesharing company via its mobile app, which matches the drivers with passengers.

This distinction between employees and independent contractors plays a significant role when it comes to determining liability in rideshare accidents. Because an independent contractor is not considered an employee of the company, there is no respondeat superior or vicarious liability. That means that the company cannot be held accountable for the conduct of its contractors.

Who is liable, the driver or the company? 

The fact is, they may both be liable but for different reasons. In many cases, the primary factor in rideshare accidents is the driver’s negligence. Rideshare drivers have a duty of care to operate their vehicles safely. When the driver breaches this duty of care, they can be held liable for the accident.

Generally speaking, Uber and Lyft drivers are covered by a $1 million insurance policy. The policy ticks on as soon as the rideshare driver picks up a fare and ends when the customer is dropped off. At all other times, the rideshare driver is operating under their own insurance policy. If you were injured as a passenger, however, you are covered by Uber and Lyft’s own insurance policy. If the rideshare driver was in between fairs, then you would file a claim against the driver’s own insurance policy.

When is the rideshare company responsible for an accident?

 Rideshare companies are required to carry insurance policies. However, sometimes personal injury attorneys make allegations directly against the rideshare company. Such allegations would essentially blame the rideshare company for placing the driver in a position to speed, distracting them from the road, or otherwise compromising their ability to drive. If Uber’s incentive system penalizes drivers for being late, that could be seen as an incentive to speed.

Talk to an Oakland, CA Car Accident Lawyer Today 

Venardi Zurada represents the interests of plaintiffs in car accident lawsuits filed against negligent drivers. We serve the Bay Area from our office locations in Oakland and Walnut Creek. Call our Oakland personal injury lawyers today to schedule an appointment, and we can begin filing your suit right away.