What to Do If Your Car Accident Involves a Rideshare Driver (Uber/Lyft)

If you’ve recently been in a crash with an Uber or Lyft, you may well be wondering what to do if your car accident involves a rideshare driver.

You should generally be entitled to compensation after a road accident. However, the involvement of a rideshare vehicle can complicate things from a legal perspective. When you’ve been injured and you need compensation to get your life back on track, this kind of complication is the last thing you want. 

At the Cochran Firm in Philadelphia, we cut through complexity and deliver results for clients. Here, we’ll discuss what you need to do in this situation to give yourself the best chance of getting paid. 

The Impact of Ridesharing on Road Accident Trends

Studies have shown that the growth of ridesharing has had a mixed impact on road traffic incidents in the U.S. On one hand, it seems to have reduced the number of alcohol-related accidents, as people are less likely to drive drunk when they have the option of getting an Uber or Lyft instead.

However, many researchers believe that ridesharing has led to an overall increase in the number of fatalities on the road in some areas. 

In terms of market share in America, Uber and Lyft are the two major players. Statistics show that Uber commanded around 76% of the U.S. rideshare market in 2024, with Lyft taking up the remaining 24%. There are other apps you can use to hail rides, but these mostly just provide a platform to book regular taxis, rather than an actual ridesharing service. These do not involve the same legal implications, so we don’t discuss them here.

It’s also worth noting that Uber has branched into other areas of the transport market, including food delivery and courier services. 

Are Rideshare Drivers Employees or Independent Contractors?

The employment status of Uber and Lyft drivers under the law has long been a hotly debated issue. 

Both Uber and Lyft have long argued that drivers are independent contractors, not employees. They maintain that drivers control their schedules, use their own vehicles, and work for multiple platforms if they choose. This setup minimizes the companies’ legal exposure via the doctrine of vicarious liability, as we discuss in more detail below. It also allows the companies to get away with offering their drivers fewer benefits. 

Some states (such as California) have taken steps to change the law such that rideshare drivers are treated as employees in some situations. In Pennsylvania, though, Uber and Lyft drivers are still classified as independent contractors.

Does Vicarious Liability Apply in Rideshare Accident Cases?

Vicarious liability holds employers responsible for the actions of their employees while performing job-related tasks. So, if you get into an accident with a driver who’s working for an employer at the time of the crash (such as a truck driver), it might be the company that’s liable, rather than the driver.

You might assume the same rule would apply when a rideshare driver causes an accident. However, as discussed above, rideshare companies have historically structured their business models to avoid vicarious liability. They argue that drivers are independent contractors, rather than employees.

While vicarious liability may not apply to Uber and Lyft drivers in the traditional sense, the companies do carry insurance policies that may cover you if one of their drivers causes you harm. However, this will depend on the activity the driver is engaged in at the time of the accident. 

It’s important to remember that drivers use their personal vehicles to provide services on Uber and Lyft. So, by law, they must have auto insurance coverage up to certain minimum limits, like any other driver in Pennsylvania. If the rideshare company’s coverage does not apply in a given situation, you should be able to file a claim against the driver’s personal insurance policy.

There are various potential scenarios here:

• Driver is “off duty”: If the app is turned off and the driver isn’t logged in, they’re not considered to be working. In this case, the rideshare company’s insurance generally will not cover you. 
• Driver is logged in but hasn’t accepted a ride: Both Uber and Lyft generally provide limited liability coverage for drivers during this period. Typically, this includes up to $50,000 in bodily injury per person, $100,000 in bodily injury per accident, and $25,000 in property damage per accident.
• Driver is enroute to pick up a passenger or has a passenger in the car: When the driver has accepted a ride or is actively transporting a passenger, a much more comprehensive liability policy kicks in. Both companies have insurance that can cover up to $1 million in damages in this situation.

What If I Get Injured as the Occupant of an Uber or Lyft?

If you’re injured as a passenger in an Uber or Lyft, the circumstances of the accident will dictate whose insurance you’ll claim against. Rideshare companies provide insurance coverage for their drivers, but that coverage applies only in certain circumstances. 

• Accident caused by the Uber/Lyft driver: If the rideshare driver is at fault, Uber or Lyft’s liability coverage should apply. This policy covers passenger injuries regardless of the driver’s personal insurance status.
• Accident caused by another driver: If another vehicle’s driver is responsible, you would typically file a claim against that driver’s insurance. However, if their policy is insufficient or they are uninsured, Uber or Lyft’s uninsured/underinsured motorist coverage may step in to cover your injuries.

Of course, many cases involve disputed liability; insurance providers will do whatever they can to limit their costs related to successful claims. Consulting with a Philadelphia car accident lawyer will help you to ensure your rights are protected in a situation like this. 

Working With a Car Accident Lawyer Who Understands Rideshare Liability Laws 

Whether you’re dealing with Uber, Lyft, or an ordinary road user, you shouldn’t have to face the aftermath of an accident alone.

Contact the Cochran Firm in Philadelphia today to schedule a free initial case consultation. You can reach us via the contact form on our website or over the phone at 800-969-4400.