Can You Sue Uber or Lyft for a Rideshare Accident?

It is amazing to think about the ways that rideshare companies such as Uber and Lyft have changed how people in the Atlanta area get around. The abundance of relatively inexpensive, reliable transportation has probably reduced drunk-driving accidents in our area because more people are willing to leave their cars at home.

But not all of the drivers who work for Uber and Lyft are responsible in their approach to their jobs. And when their negligence leads to a rideshare accident, the injuries can cause substantial pain, loss, and heartache for the victims who are hurt. It makes sense to consider whether it is possible to sue the major corporations involved rather than just the individual drivers.

A personal injury attorney experienced in handling rideshare accident cases can analyze the specific circumstances of your case and assess whether you may be able to recover compensation directly from Uber or Lyft. Even if you cannot, the additional insurance provided by these companies may provide sufficient resources to fulfill your claim. But securing any recovery is a challenge when a rideshare company is involved, because the legal teams involved know how to fight effectively to deflect liability and deny full compensation.

Why It Is Difficult to Sue the Rideshare Company Directly

Uber earned well over $40 billion last year. With a revenue stream like that, the corporate leaders are well aware of the need to protect company assets. Rideshare companies have structured their arrangements with drivers so that, in many cases, they are insulated from liability.

Drivers are Considered Independent Contractors

To begin with, the drivers are classified as independent contractors rather than employees. The laws of most states hold companies responsible for their employees’ actions, but that responsibility often does not extend to independent contractors. That’s because independent contractors can control many aspects of their work environment. Drivers use their own vehicles, so they are responsible for maintaining them. You probably cannot blame the rideshare company if the driver was operating with faulty brakes or bald tires. Rideshare companies may require drivers to have their cars inspected once a year, but generally the responsibility for ensuring the vehicle’s safety rests with the driver and vehicle owner, rather than with the rideshare company.

The rideshare companies do not directly supervise drivers or tell them what route to take or what hours they must work. However, they do control some aspects of the working relationship, including the rates drivers can charge, and, for that reason, the classification of drivers as independent contractors has been challenged in court. It may be possible at some point to impose liability on the companies as employers, but we probably have not reached that time just yet.

Rideshare Companies Classify Themselves as Technology Companies

Another reason it can be difficult to hold rideshare companies like Uber and Lyft directly liable for rideshare accidents is that these companies assert that their business is not providing rides but merely providing the technology that allows drivers to connect with riders. As technology providers, they are less likely to be legally held responsible for drivers’ actions or passenger safety issues.

Situations Where it May Be Possible to Hold Uber or Lyft Liable

To establish legal liability against the rideshare company itself rather than the driver involved in the car accident, you need to be able to prove that the company acted negligently or recklessly in some way.

For instance, Uber and Lyft require drivers to use specific apps. If you can prove that features of the app encourage drivers to take unnecessary risks, that could potentially provide grounds for liability. Or if you can find evidence that people had made repeated complaints about a vehicle’s safety or a driver’s behavior and the company did nothing to address the problem, then it may be possible to hold the company liable. 

While the company is not generally responsible for criminal actions committed by drivers, if the company failed to perform a background check and yet advertises to riders that all drivers have been checked, then the company may be potentially liable for criminal actions.

It takes an intense analysis of the facts of a particular situation to determine the likelihood of success when suing Uber or Lyft directly. These companies will be represented by the high-powered legal teams experienced in finding creative ways to escape liability.

Insurance from the Rideshare Company May Be Available When You Sue the Driver

Most injury claims are covered by insurance rather than the individual drivers involved. In the case of a rideshare accident, the insurance policies provided by Uber and Lyft could cover the claim even if you haven’t sued those companies directly. 

Uber, for instance, provides drivers with $1,000,000 in insurance that covers injuries and property damage that occur while a driver is carrying passengers or on the way to pick up passengers. If an Uber driver is involved in an accident while they are connected to the app and available to carry passengers but not actively doing so, insurance provides a lower level of coverage, but that coverage is still twice the minimum standard set by the Georgia government.

If You Were Hurt in a Rideshare Accident, Michael M. Day Law Firm Can Work to Obtain Maximum Compensation

Every car accident involves unique circumstances, and often the actions of many different people contribute to the cause. That means there may be different sources of compensation available after a rideshare accident. At Michael M. Day Law Firm, we work to hold all responsible parties accountable for the harm caused by their negligence, and we fight for the maximum available compensation for accident victims. For a free evaluation of your case and to learn about the assistance our team can provide, call us at 404-480-4284 or contact us online now.