Filing a claim after an Uber or Lyft accident in Arizona involves determining which insurance policy applies: the driver's personal policy, or Uber or Lyft's commercial policy, which can offer up to $1 million in coverage. The correct policy depends entirely on the driver's status within the app at the precise moment of the crash.
This process is complicated by rideshare companies classifying their drivers as independent contractors, a distinction they use to challenge their responsibility for the crash. Proving your case requires managing these corporate structures and state-specific insurance laws.
If you were injured in a rideshare crash, a skilled Phoenix rideshare accident attorney can protect your rights and guide you through the legal process. For a free consultation to understand your options, call Gallagher & Kennedy at (602) 530-8400.
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Who Is Responsible for Paying?
After a rideshare crash, it’s not always clear who pays for your injuries and losses. It could be the rideshare driver, another at-fault driver, or Uber or Lyft's corporate insurance. The answer hinges on a single detail as we mentioned above: what the driver was doing in the rideshare app when the accident happened. This determines which insurance policy is on the hook for your damages.
The Three Scenarios of Rideshare Insurance Coverage:
The insurance landscape for rideshare accidents is divided into distinct periods, each with its own level of coverage.
- The Driver Was Offline: If the driver was not logged into the Uber or Lyft app, their personal car insurance is the primary source of coverage. In this situation, the rideshare company's insurance does not apply at all. The claim proceeds like a standard car accident case against the at-fault driver.
- The Driver Was Waiting for a Request: If the driver was logged in and available but had not yet accepted a ride, a lower level of rideshare insurance applies. Arizona law requires specific coverage for this period, which acts as a bridge between the driver's personal policy and the TNC's full commercial policy.
- The Driver Was En Route or Transporting a Passenger: From the moment the driver accepts a ride request until the ride is completed and the passenger exits the vehicle, Uber and Lyft's highest insurance coverage is active—typically a $1 million commercial policy. This policy is designed to cover injuries to passengers, pedestrians, and people in other vehicles.
Determining the driver's status is not always straightforward. It requires securing electronic data from the rideshare company, which is a step a law firm will handle immediately to preserve that evidence.
Why a Rideshare Crash Is More Complicated Than a Typical Car Accident
The Independent Contractor Problem
Uber and Lyft build their business models around classifying drivers as independent contractors, not employees. This is a deliberate legal strategy designed to shield them from direct responsibility for a driver's negligence. Under a legal concept known as vicarious liability, employers are typically held accountable for the actions of their employees while on the job. By labeling drivers as contractors, these companies attempt to sidestep that rule.
Because of this classification, their insurance carriers may initially try to point responsibility back to the driver's personal insurance, which typically has much lower policy limits and may even deny the claim based on a commercial use exclusion.
Multiple Insurance Policies in Play
A typical car accident involves one or two insurance policies. A rideshare accident could involve three or more, creating a web of potential coverage:
- The rideshare driver's personal auto policy.
- Uber or Lyft's lower-tier liability policy (for when the app is on but no ride is active).
- Uber or Lyft's $1 million commercial policy (for when a ride is in progress).
- The policy of another at-fault driver, if a third vehicle was involved.
Coordinating claims between these different companies requires a clear understanding of insurance priority, which is dictated by the specific facts of your case and Arizona law. Without proper guidance, you might pursue a claim against the wrong policy, leading to delays and potential denials.
A Deeper Look at Arizona's Rideshare Insurance Law
Arizona has a specific law that dictates the insurance requirements for rideshare companies, which are officially called Transportation Network Companies (TNCs). This law, A.R.S. § 28-4038, removes the guesswork about what coverage should be available to injured victims.
Here is what the law requires, in simple terms:
Period 1: App is On, Waiting for a Ride Request
- What it means: The driver is logged into the app and available for hire but has not yet accepted a passenger.
- Required Coverage: The law mandates liability coverage of at least:
- $25,000 for bodily injury or death to one person.
- $50,000 for bodily injury or death to two or more people.
- $20,000 for property damage.
- This coverage serves as a safety net. Personal auto policies frequently contain a "commercial use exclusion," meaning they won't cover an accident that happens while the driver is working. When the personal insurer denies the claim, this TNC coverage is supposed to step in.
Period 2: Driver Accepts a Ride or Has a Passenger
- What it means: This period starts the moment the driver accepts your ride request and ends only when the passenger has fully exited the vehicle.
- Required Coverage: During this time, the TNC must maintain a primary commercial insurance policy of at least $1,000,000.
- This high-limit policy is designed to cover liability for death, injury, and property damage. It represents the most significant financial protection available to injured passengers, pedestrians, or occupants of other vehicles involved in the crash.
How a Rideshare Accident Attorney Builds Your Rideshare Claim
When you are recovering from an injury, your focus should be on your health and well-being. Our focus is on the detailed, methodical work required to build a strong claim on your behalf. Here is what we do for you:
We Take Over All Communications
From the moment you retain our firm, you will stop receiving calls from insurance adjusters looking for recorded statements or trying to press you into a quick, lowball settlement. We handle all communications with every involved party—the rideshare company, their various insurance carriers, the other driver's insurer, and any opposing attorneys. This protects you from saying something that could be misconstrued and used against you later.
We Launch an Immediate Investigation
Evidence is the bedrock of any personal injury claim, and it disappears quickly. We act fast to secure it.
- Preserving Digital Evidence: Our first action is to send a legal notice to Uber or Lyft demanding they preserve the driver's complete ride data, GPS logs, communication records, and work history.
- Collecting Physical Evidence: We gather the official police report, track down and interview witnesses, and collect all photos and videos of the accident scene, vehicle damage, and your injuries.
- Accident Reconstruction: In cases involving serious injuries or disputed facts, we may collaborate with forensic engineers to reconstruct the crash. They analyze vehicle data and physical evidence to prove how the driver's negligence—such as speeding or distraction—led directly to the collision.
We Document Your Full Range of Losses
- We compile every medical record, bill, and receipt related to your care—from the initial ambulance ride to ongoing physical therapy.
- We work with you and potentially your employer to calculate all lost wages. If your ability to work has been permanently impacted, we may consult with economic and vocational professionals to project your diminished future earning capacity.
- We help you articulate the non-financial losses. These are the human costs of the crash—the physical pain, the emotional stress, and the ways your daily life has been rewritten by the injury.
We Manage the Legal Back-and-Forth
We are skilled negotiators who will present a comprehensive demand package to the insurance company. If they refuse to make a fair and just offer, we are fully prepared to file a lawsuit and present your case compellingly in court.
What Is My Uber or Lyft Accident Claim Worth?
Compensation is generally calculated based on two distinct categories of damages. Our goal at Gallagher & Kennedy is to pursue the maximum compensation available under Arizona law for everything you have endured.
Economic Damages: The Tangible Financial Losses
These are the specific, calculable costs that have resulted from the accident. They include:
- All Medical Expenses: This covers everything from ambulance rides, emergency room care, and hospital stays to surgeries, rehabilitation, physical therapy, medications, and any future medical treatment you may require.
- Lost Income: We document the wages, salary, and benefits you lost while unable to work during your recovery.
- Diminished Earning Capacity: If the injury permanently affects your ability to perform your job or forces you into a lower-paying field, we calculate the lifetime impact on your earnings.
- Property Damage: This includes the cost to repair or replace your vehicle and any other personal property that was damaged in the crash, such as a laptop or cell phone.
Non-Economic Damages: The Human Cost of the Crash
These damages are meant to compensate you for the personal ways the injury has affected your quality of life. Though they don't come with a price tag, they are just as real and deserve to be recognized. Examples include:
- Pain and Suffering: This compensates for the physical pain, discomfort, and emotional distress caused by your injuries.
- Loss of Enjoyment of Life: This addresses the inability to participate in hobbies, activities, sports, or family life as you once did.
- Emotional Anguish: This covers the anxiety, fear, depression, or post-traumatic stress that can result from a traumatic crash.
In Arizona, if your case involves multiple at-fault parties, a legal rule known as comparative negligence may apply. This means your final compensation could be reduced by your percentage of fault, if any is assigned to you. We work diligently to build a case that clearly establishes the other party's responsibility and minimizes any unfair attempt to shift blame onto you.
Frequently Asked Questions About Rideshare Accident Claims
What if I was a pedestrian hit by an Uber or Lyft driver in Phoenix?
As a pedestrian, you have the same rights to pursue a claim for your injuries. The core issue remains the driver's status in the app at the time you were hit. If the driver was en route to pick up a passenger or already had a passenger in the car, you can file a claim against Uber or Lyft's $1 million commercial insurance policy. We handle many cases for injured pedestrians.
The insurance company offered me a quick settlement. Should I take it?
You should be very cautious of any early settlement offer. These offers are frequently an attempt to close your case for a low amount before the full extent of your injuries and long-term financial losses are known. Some injuries do not manifest their full impact for weeks or months. It is always wise to have any offer reviewed by an attorney before you sign away your rights.
How long do I have to file a lawsuit in Arizona?
In Arizona, the statute of limitations for most personal injury claims is two years from the date of the accident. If you miss this deadline, you will likely be barred from ever recovering compensation. However, if a government entity is involved (for example, if a city bus was part of the crash or a poorly maintained road contributed to it), the deadline is much shorter. You must file a formal Notice of Claim with the government entity within just 180 days of the accident.
Do I have to pay a rideshare accident lawyer upfront to handle my case?
No. We handle personal injury cases on a contingency fee basis. This means you pay no attorney's fees unless and until we recover compensation for you through a settlement or a court verdict. Our fee is a percentage of the recovery, so our interests are directly aligned with yours: to secure the best possible outcome for your case.
Let Us Bring Clarity to Your Claim
For a free, no-obligation discussion about your case and to learn how we can help, contact our dedicated Phoenix personal injury attorney team today. You can reach us at (602) 530-8400 or by filling out a contact form on our website.