Uber, Lyft or Taxi? Who Has You Covered In a Car Accident?

By Dallas Car Accident Injury Attorney, Tim O’Hare

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Ridesharing companies like Lyft and Uber are becoming increasingly popular as a means of transportation over the traditional taxi service. While ridesharing may be more convenient and in some cases, more affordable, should passengers be concerned about safety?

Taxi companies would like for you to believe you are putting yourself at risk calling Lyft or Uber instead of a taxi. They claim that if a passenger riding in a Lyft or Uber vehicle is injured during a car accident, he or she may be left without insurance coverage to cover medical bills, lost wages and pain and suffering.

Is that true?

While rideshare drivers carry a personal insurance policy, many insurance policies may deny coverage if the driver was driving “for profit.” But, what Lyft and Uber want you to know is that they carry excess coverage above what the driver carries for him or herself. That means if you are a passenger in the back seat of a rideshare vehicle and are injured in a wreck, the rideshare company’s liability insurance provide coverage for damages, even if your claims are rejected by the driver’s insurance company.

Texas law requires Transportation Network Companies (TNC) to carry minimum liability coverage for drivers of 30/60/25. This means drivers are covered for $30,000 per person for bodily injury in a wreck, up to $60,000 per accident for all injured persons combined and $25,000 in property damage per accident.

According to both Lyft and Uber, the rideshare companies provide up to $1,000,000.000 in coverage (you can read more about Lyft’s policy here and Uber’s policy here.) While taxi cab policies vary from state to state, the minimum amount of injury coverage for a taxi driver is typically between $250,000 and $500,000 — and taxi companies rarely carry more than the minimum required. In Texas, that comes to $30,000 maximum per person injured and $60,000 for all injured persons combined per accident.

If you are injured due to a Lyft or Uber driver’s negligence, you’re likely better off than if you were injured while riding in a taxi cab.

Additionally, both Lyft and Uber also provide up to $1 million in Uninsured Motorist Coverage, so you’re covered if you are injured in an accident where your driver is not he negligent driver. Whether the taxi company carries Uninsured Motorist Coverage is up each state. If the state doesn’t require taxi companies to offer Uninsured Motorist Coverage, and you don’t have your own uninsured motorist coverage, you may be out of luck.

The bottom line: despite advertisements to the contrary by traditional taxi companies, if you are injured in a car accident while riding in a Lyft or Uber car, you are covered.

Tim O’Hare is an experienced Texas Christian injury lawyer who will represent you with integrity and ensure you receive all compensation due you for your injury. If you’ve been injured in a wreck while riding in a taxi cab or rideshare vehicle, contact one of the best personal injury lawyers in Dallas, Tim O’Hare, today.

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