Who Is Liable in a Memphis Rideshare Accident: The Driver, Company, or Both?

Rideshare services like Uber and Lyft have transformed how people travel in Tennessee. However, as rideshare usage increases, so does the number of accidents involving these vehicles. Determining liability can be complicated when injured in a Memphis rideshare accident. Is the driver responsible? Does the rideshare company bear some liability? Or could both parties be held accountable?

Understanding the nuances of rideshare accident liability is critical to pursuing compensation. Our Shelby County personal injury lawyers at the Gold Law Firm can help.

Liability in Rideshare Accidents: Key Considerations

Rideshare accidents differ from traditional car crashes because they involve drivers operating as independent contractors under the umbrella of larger companies. This relationship creates a complex web of potential liability. Several factors come into play, including the driver’s status at the time of the accident and the rideshare company’s policies.

When the Driver is Liable

Rideshare drivers, like any other motorist, can be held personally liable if their negligence causes an accident.

Common examples of driver negligence include:

• Distracted driving, such as texting or using the rideshare app.
• Speeding or reckless driving.
• Driving under the influence of alcohol or drugs.
• Fatigue, particularly after long hours on the road.

If the rideshare driver’s negligence caused the accident, they might be liable for the damages. However, the driver’s auto insurance policy may have limitations, mainly if the accident occurred while transporting a passenger.

When the Rideshare Company is Liable

Rideshare companies like Uber and Lyft classify their drivers as independent contractors, not employees, to limit their liability.

However, they do provide insurance coverage in specific situations:

• Driver Offline or Off Duty: The company typically provides no coverage when the driver is not logged into the rideshare app. In this scenario, the driver’s personal insurance policy applies.
• Driver Online, Waiting for a Ride Request: If the driver is logged into the app but has not yet accepted a ride, the company provides limited liability coverage:
• $50,000 per person for bodily injury.
• $100,000 per accident for bodily injury.
• $25,000 for property damage.
• Driver En Route or Transporting a Passenger: Once the driver accepts a ride request or is actively transporting a passenger, the company’s $1 million liability coverage applies. This coverage is designed to compensate victims for injuries, property damage, and other losses caused by the accident.

When Both the Driver and Company Share Liability

In some cases, the driver and the rideshare company may share liability.

For example:

• If the driver’s negligence caused the accident but occurred while they were transporting a passenger, the company’s insurance coverage typically applies.
• If the rideshare company failed to vet the driver properly or allowed an unqualified individual to work on its platform, it could be held partially responsible for the accident.

Steps to Take After a Rideshare Accident

If you’re involved in a Memphis rideshare accident, take these steps to protect your claim:

• Call 911 to report the accident.
• Document the scene by taking photos of the vehicles, injuries, and surroundings.
• Exchange information with the rideshare driver and other involved parties.
• Save evidence, such as receipts, app notifications, and screenshots that show your ride details.
• Seek medical care immediately.
• Consult our experienced rideshare accident attorney in Memphis.

How the Gold Law Firm Can Help

Rideshare accident claims can be challenging due to the involvement of multiple parties and insurance policies. At The Gold Law Firm, we have the expertise to navigate these complexities and fight for the compensation you deserve.

Whether your accident was caused by a negligent driver, rideshare company, or both, our team will conduct a thorough investigation, negotiate with insurers, and, if necessary, represent you in court.

With over 165 five-star reviews, hundreds of client testimonials, and tens of millions in damages collected for clients throughout Tennessee, Your rights matter, and we’re here to protect them. Call or text (901) 244-5003 or contact us online for your free consultation today.