Rideshare accidents in Castle Rock involving Uber or Lyft may sound like any other car accident. However, in terms of injury liability, these accidents present unique insurance issues and aren’t as clear-cut as claims involving traditional passenger vehicles only.
Overview of Colorado Insurance Laws
Colorado is an at-fault insurance state when it comes to auto accidents. State law requires drivers to purchase minimum amounts of bodily injury (BI) and property damage (PDL) liability insurance in the event of a crash, including:
- $25,000 for bodily injury or death to a single person in an accident;
- $50,000 for bodily injury or death to multiple persons in an accident; and
- $15,000 for property damage for a single accident
This coverage is known as a 25/50/15 policy. In a typical car accident claim, you will file a claim with the at-fault party’s BI or PDL coverage to recover compensation for accident-related losses. However, accidents involving rideshare drivers follow a slightly different process.
Liability and Insurance Issues in Rideshare Accidents
Per Colorado law, Uber and Lyft drivers must carry minimum amounts of auto insurance like any other driver. However, the average policy will not cover a driver’s accident if it occurs while providing rideshare services. Unless the driver has commercial coverage or special add-ons, the insurer may deny the claim.
Incidentally, rideshare companies like Uber & Lyft classify their drivers as independent contractors. This classification generally shields these companies from liability for driver-caused accidents.
Fortunately, Colorado requires rideshare companies like Uber and Lyft to purchase commercial insurance policies for their drivers. These policies are activated when a rideshare driver causes a collision.
However, the amount of available coverage in a Lyft or Uber accident will depend on the driver’s status at the time of the crash.
Driver’s Rideshare App is Off
When a rideshare driver is not logged into their Uber or Lyft app, their personal insurance (at least 25/50/15) will apply to any motor vehicle accident claim that arises from a crash.
Driver is Awaiting Ride Requests
Uber and Lyft’s basic coverage applies when the driver is logged into the relevant rideshare app but is not transporting a passenger and has not accepted a ride. This policy offers:
- $50,000 in bodily injury per person
- $100,000 in bodily injury per accident
- $25,000 in property damage per accident
This coverage only applies if the driver’s personal policy won’t cover the accident.
Driver Has Accepted Ride Request
When a driver accepts a ride request, a higher level of insurance applies:
- At least $1 million in third-party liability coverage
- First-party coverages, such as uninsured/underinsured Motorist (UM) coverage
- Comprehensive and collision coverage if you maintain this on your personal auto coverage (will provide up to the vehicle’s value after a $2,500 deductible)
This coverage is active when drivers are on their way to pick up passengers and during the rideshare trip itself.
A Castle Rock Rideshare Accident Lawyer Can Help You Identify Applicable Coverages
Rideshare collisions present complex insurance and liability issues. An investigation may even be needed to determine the driver’s status at the time of the crash and which policy will apply to your damages. Even then, Uber, Lyft, and their insurance companies may try to deflect liability and claim the driver’s personal auto insurance applies.
A Castle Rock rideshare accident lawyer can help you navigate your rideshare claim and ensure that your right to compensation isn’t jeopardized by a technical and needless liability dispute between rideshare corporations and insurers.
At Casares Injury Law, we will investigate your accident, identify all liable parties and applicable insurance coverage, and work to get you the full compensation you deserve. Call us today at (303) 688-7474 or fill out our online form to schedule a free consultation.