Rideshare companies like Uber and Lyft have revolutionized the way we get from point A to point B, making it significantly easier for passengers to hail a ride. Indeed, by all accounts, passengers nationwide have adopted the new technology with open arms. By some estimates, rideshare drivers provided service to approximately 45 million passengers last year. What is more, that figure is expected to rise to over 70 million passengers by 2022.
It is not surprising, then, that the number of car accidents involving rideshare drivers has increased correspondingly. Making matters worse is the fact that rideshare companies do little to ensure that their drivers are “good drivers.” In most cases, all someone needs to qualify to be a rideshare driver is three years of driving experience, a clean driving record, and an insured vehicle.
While rideshare companies do not apply a rigorous selection criteria to their drivers, they do maintain significant insurance in the event of an accident. The two largest rideshare companies, Uber and Lyft, each maintain $1 million of insurance on behalf of their drivers. This insurance covers the driver from the moment they accept a passenger’s request for a ride until the passenger is dropped off. The policy will generally cover an injury to the driver or the passenger, as well as any third parties injured in an accident that was caused by the driver’s negligence.