An insurance gap occurs when a victim's damages from an accident exceed the at-fault party's available coverage, leaving them uncertain about how to pay for the difference. The most confusing and distressing aspect of a rideshare insurance gap coverage issue is wondering who will pay for your medical bills and other losses.
Facing a potential gap between what insurance offers and what you need for recovery creates immense stress. However, a denial or a low limit from one insurer doesn’t close the door on your claim.
An experienced rideshare accident lawyer investigates all possible avenues to find the compensation you require.
Key Takeaways for Rideshare Insurance Gap Coverage
- Coverage gaps often occur when a rideshare driver is logged into the app but hasn’t yet accepted a ride request.
- The driver's personal auto insurance policy likely contains an exclusion for commercial driving activities, including waiting for a rideshare passenger.
- Rideshare companies typically offer lower contingent liability coverage during this gap period compared to the $1 million policy that applies during an active ride.
- Your own Uninsured/Underinsured Motorist (UIM) coverage can become a crucial source of compensation after an accident.
- An attorney’s investigation can uncover the driver’s precise status at the moment of the crash to determine which policy applies.
Understanding the Three Rideshare Insurance Periods
Insurance for a rideshare vehicle changes based on the driver's activity during a collision. The application of a specific policy depends entirely on which of three distinct periods the driver was in when the wreck occurred.
An Arizona rideshare accident lawyer can investigate the driver’s digital footprint to pinpoint their status and hold the correct insurer accountable.
The three phases include:
- App Is Off: When the driver is using their vehicle for personal matters with the rideshare app completely off, they’re considered a private motorist. The rideshare company has no involvement or liability, and the driver’s personal auto insurance policy is the only source of coverage in the event of a crash.
- App Is On, Awaiting a Request: A primary source of rideshare insurance gap coverage arises in this stage, when the app is on but the driver hasn’t accepted a ride. The driver's personal policy will likely deny a claim due to a commercial use exclusion. The rideshare company's primary commercial policy hasn't been triggered, leaving only a lower-limit contingent liability policy as required by Arizona law.
- Ride Accepted Through Drop-Off: As soon as the driver accepts a ride request, a substantial commercial insurance policy activates and remains in effect until the passenger safely leaves the vehicle. This coverage provides at least $250,000 in liability coverage as mandated by Arizona law, though companies often carry $1 million policies.
The Problem With Contingent Liability Coverage
The term "contingent liability" itself reveals the core problem for injured victims. When the app is on but the driver hasn’t accepted a passenger, coverage is contingent, or dependent, on the driver's personal auto insurer first denying the claim.
This creates an extra procedural step and delay before you can even access this limited coverage. The low policy limits associated with contingent liability coverage present another major hurdle. State laws mandate minimums, but these amounts may not be sufficient to cover serious injuries.
For example, in Arizona, this coverage might only offer $50,000 in liability coverage per person. A hospital stay alone can easily exceed this amount, leaving you with unpaid medical debt and uncompensated lost wages.
A rideshare insurance gap coverage scenario demands a thorough search for all possible insurance policies. You need a strong advocate to find all avenues for financial recovery.
Options for Recovery in a Rideshare Accident Claim
When you find yourself injured in a crash that involves a rideshare insurance gap coverage issue, you might feel like you have run out of options. However, several potential pathways for securing compensation may exist.
An experienced Arizona rideshare accident lawyer explores every avenue to find the resources you need for your recovery.
Your Own Auto Insurance Policy
Many people don’t realize their own car insurance may apply even when they’re a passenger in someone else's vehicle. If you have Uninsured/Underinsured Motorist (UIM) coverage on your personal auto policy, you may be able to file a claim.
An attorney can review your personal auto policy to see if you have this valuable coverage and help you file a UM/UIM claim with your own insurer. This is a common way to deal with a rideshare insurance gap coverage problem.
Other Liable Parties
In some accidents, parties other than the rideshare driver may share fault. A thorough investigation could reveal other sources of liability. A lawyer examines all the facts to identify every responsible party.
Possible liable parties include:
- Another Driver: If another vehicle contributed to the crash, that driver's liability insurance would be a primary source of recovery.
- A Vehicle Manufacturer: A defective vehicle part, such as faulty brakes or a malfunctioning airbag, could make the car's manufacturer liable.
- A Government Entity: Poor road design or a malfunctioning traffic signal could place liability on a city or state transportation department.
Pursuing a claim requires a detailed investigation into the crash scene, police reports, and witness statements.
The At-Fault Driver's Personal Assets
If the applicable insurance policies don’t cover your damages, you may have a claim against the at-fault driver's personal assets. A lawyer can conduct an asset check to determine if the driver has personal resources, such as property or savings, that you could access through a lawsuit.
This approach requires careful legal strategy. An attorney can advise you on the viability of pursuing a personal injury lawsuit against the driver directly. This step often follows the exhaustion of all available insurance coverages.
5 Steps To Take After a Rideshare Accident in Arizona
If you've received medical attention, you can take several more actions to protect your rights and begin building a strong foundation for your claim. These actions help preserve evidence and clarify the facts involving your rideshare crash.
Take these five actions now:
- Document Your Ride Information: Go into your rideshare app and take screenshots of the trip details. This includes the driver's name, vehicle information, the ride route, and the date and time of the trip.
- Organize Medical Records and Bills: Create a dedicated folder for every medical document related to the accident. This includes hospital discharge papers, bills from doctors and therapists, and receipts for any medical equipment or prescriptions. Keeping these organized helps demonstrate the financial impact of your injuries.
- Keep a Daily Journal: Write down how you feel each day. Note your pain levels, any physical limitations, and how the injuries affect your daily activities, such as working, sleeping, or family life. This journal provides a powerful narrative of your suffering and losses.
- Preserve All Communication: Don’t delete any emails, texts, or app messages from Uber, Lyft, or any insurance company. Avoid giving a recorded statement to any insurance adjuster without first speaking to a lawyer.
- Contact a Rideshare Accident Lawyer: An attorney offers guidance and experience when dealing with the complexities of a rideshare case with an insurance gap. An attorney can immediately take over communication with insurance companies, begin an investigation, and explain your legal options clearly.
How a Lawyer Helps With a Rideshare Insurance Gap Coverage Problem
Handling a claim involving a rideshare insurance gap coverage issue presents unique challenges that a knowledgeable lawyer can effectively manage. A legal advocate works to protect your interests and build the strongest possible case on your behalf.
Here is how a dedicated attorney helps:
- Investigation: Your lawyer will investigate the crash to find evidence. They can request the driver’s electronic data from the rideshare company, find traffic or dashcam footage, and interview any potential witnesses.
- Policy Identification: An attorney can identify all potential sources of recovery, including the driver's personal policy, the rideshare company's contingent and primary policies, and your own UM/UIM coverage.
- Communication: A legal professional acts as your representative, handling all communications with insurance adjusters, who may try to minimize your claim or pressure you into a quick, low settlement.
- Damage Calculation: Your legal team will work to fully calculate your damages, including current and future medical expenses, lost income, diminished earning capacity, and pain and suffering, to ensure you seek a fair recovery amount.
- Litigation: If insurance companies refuse a just settlement, your lawyer can argue your case in court.
A skilled Arizona rideshare crash attorney understands how to approach the specific arguments arising from rideshare insurance gap coverage and can build a strategy to achieve a positive outcome. You can fortify your claim by hiring a law firm with experience in these unique cases.
FAQ for Rideshare Insurance Gap Coverage
What Exactly Is a Rideshare Insurance Gap?
A rideshare insurance gap frequently occurs when a driver is logged into the app but hasn’t yet accepted a ride request. During this specific window, the driver’s personal car insurance will likely deny coverage due to a business-use exclusion.
Uber and Lyft only provide a lower-limit contingent liability policy, significantly less than the $1 million active coverage during a trip. These lower limits may not cover your losses, leaving you with a gap.
Can I Sue Lyft After an Accident as a Passenger?
You can pursue a claim against Lyft's insurance policy; in some situations, you may file a lawsuit if Lyft and your lawyer can’t come to an agreement on a settlement.
Generally, a claim first proceeds against the at-fault driver. If that driver was working for Lyft and en route or carrying a passenger, Lyft’s $1 million policy applies, and your lawyer negotiates a settlement with their insurer.
If the situation involves a rideshare insurance gap coverage dispute or the insurer's inadequate offer, your attorney may advise filing a lawsuit.
How Does Uninsured Motorist Coverage for Rideshare Work?
Uber and Lyft provide Uninsured/Underinsured Motorist (UIM) coverage to protect you if an uninsured or underinsured driver causes an accident. If the other driver is at fault but has no insurance or not enough to cover your injuries, you can claim the rideshare company’s UIM policy.
You may also be able to file a claim under your own personal UM/UIM coverage in some instances.
Who Pays for an Uber Accident When the Driver Is Waiting for a Ride?
A complex insurance situation arises when an Uber driver is waiting for a ride request because the driver’s personal policy will likely deny the claim. Uber provides a contingent liability policy with lower limits that applies only after the personal insurer formally denies coverage.
Your lawyer can help navigate this process to identify all available policies.
How Does a Lawyer Prove the Driver’s Status at the Time of the Crash?
An experienced rideshare accident lawyer can send a formal preservation letter to the rideshare company, demanding that it save all electronic data related to the driver's activity on the day of the accident.
This data provides a timestamped record of when the driver logged on, accepted a ride, and began the trip.
Bridging the Gap
The moments after a rideshare accident can fill your life with uncertainty and difficult questions about your future. Dealing with a rideshare insurance gap coverage issue only adds to that stress.
Retaining legal counsel is an investment in your own recovery. It shifts the burden of fighting with insurance companies from your shoulders to a dedicated advocate.
Let our team at Gallagher & Kennedy handle the legal challenges so you can concentrate all your energy on what matters most: healing. Call us today at (602) 530-8400 for a free consultation.