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Rideshare services like Uber and Lyft are an essential part of life for many of us in Essex County, offering a convenient way to get around Newark, Montclair, and beyond. When you get into a rideshare vehicle, you trust that you will arrive at your destination safely. Accidents, unfortunately, do happen. When they involve a rideshare company, figuring out who is responsible for the damages can be challenging. Understanding how New Jersey determines liability in a rideshare accident is the first step toward protecting yourself.
The moments after a crash are confusing. You may have injuries, your car may be damaged, and you are suddenly faced with questions about insurance. Is the driver responsible? Does Uber or Lyft’s insurance cover your expenses? The answers are not always straightforward and depend entirely on the specific circumstances of the accident.
Knowing how fault and insurance coverage work in a rideshare crash can make a significant difference in your ability to recover compensation. Whether you were a passenger, another driver, or even a pedestrian, determining which insurance policy applies is key to ensuring you receive fair payment for medical bills, lost wages, and other losses.
New Jersey’s Specific Rules for Rideshare Insurance
New Jersey lawmakers recognized the unique situation created by rideshare services and passed a specific law to address it. The law, found in N.J.S.A. 39:5H-10, creates a tiered system of insurance coverage. This system determines whose insurance policy must cover damages based on the driver’s status in the rideshare app at the time of the collision.
The law breaks the driver’s status into three distinct periods.
Period 1: The Driver’s App is On, Waiting for a Ride Request
When a driver is logged into the Uber or Lyft app but has not yet accepted a ride, they are in Period 1. During this time, the rideshare company’s contingent liability insurance must provide:
- $50,000 in coverage for bodily injury per person
- $100,000 in total coverage for bodily injury per accident
- $25,000 in coverage for property damage
This coverage applies if the driver’s personal auto insurance does not cover the incident, as many personal policies have exclusions for commercial driving activity.
Periods 2 & 3: The Driver is En Route to or Transporting a Passenger
Once the driver accepts a ride request and is on the way to pick up a passenger (Period 2), or when the passenger is in the car (Period 3), the required insurance coverage increases significantly. During these periods, the rideshare company’s commercial insurance policy must provide at least:
- $1.5 million in liability coverage for death, bodily injury, and property damage.
- $1.5 million in uninsured/underinsured motorist (UM/UIM) coverage.
This substantial coverage protects passengers, pedestrians, and other drivers who might be injured in a crash caused by the rideshare driver.
When the Driver’s App is Off
If the rideshare driver is not logged into their app, they are not considered to be working. Any accident they cause is covered by their personal auto insurance policy, just like any other driver on the road.
Who Can Be Held Liable in a Rideshare Crash?
Several parties could be responsible after a rideshare accident. New Jersey follows a rule called modified comparative negligence. This means you can recover damages as long as you are not more than 50 percent at fault for the accident. Your percentage of fault simply reduces your recovery amount.
Parties who may be liable include:
- The Rideshare Driver: If the driver’s negligence caused the crash through actions like speeding, distracted driving, or running a red light, they are liable.
- The Other Driver: If another vehicle’s driver was at fault, you would file a claim against their insurance policy. If that driver is uninsured or underinsured, the rideshare company’s UM/UIM policy may apply if you were in Periods 2 or 3.
- Uber or Lyft: While rideshare companies classify drivers as independent contractors to limit direct liability, their required commercial insurance policies are critical for compensating victims.
- A Third Party: In some cases, a government entity responsible for road maintenance or a vehicle manufacturer could share some of the liability.
Navigating a Claim After an Accident in Essex County
Accidents in congested areas are common. Busy intersections in Newark, like Broad and Market or Raymond Boulevard and McCarter Highway, see frequent collisions. After an accident, your health is the priority. Seek medical attention immediately, even for what seem like minor injuries.
Next, try to document everything. Take photos of the scene, exchange information with all drivers involved, and get contact details from any witnesses. Be sure to report the accident to the police to create an official record. It is also wise to report the incident to the rideshare company through their app.
The insurance claim process that follows can be overwhelming. You may be dealing with multiple adjusters from different companies, each with their own interests. This is where having knowledgeable guidance can make a significant difference.
How We Can Help
At Birkhold & Maider, LLC, we understand the complexities of personal injury law in New Jersey. We approach each case with compassion and a commitment to ensuring our clients understand their options. We know that dealing with the aftermath of a car accident is stressful, and our goal is to provide clear, informative support so you can focus on your recovery.
If you were injured in an Uber or Lyft accident, you do not have to manage these challenges on your own. We offer free consultations to discuss the details of your situation and explain how we can assist you. Contact us today to learn more. You can reach our team by calling 973-319-7795.
