The popularity of rideshare apps are continuing to grow, as more and more people are becoming acquainted with their convenience and ease-of-use. These benefits can often outweigh those of more traditional transportation services, like taxis, private drivers, etc.
So, what exactly does it mean to rideshare?
Ridesharing services, like Uber and Lyft, connect drivers that are utilizing their own vehicles, with passengers looking for a ride on-demand. These can often include rides to and from the airport, transportation home after a night on the town, etc.
Whether you’re a rideshare driver or a passenger, staying safe while in a rideshare situation is key.
One of the key differences between rideshare drivers and more traditional drivers, like those who operate taxis, was that rideshare drivers were not originally required to carry commercial insurance.
In fact, it wasn’t until 2014 that Colorado passed Senate Bill 14-125: “Concerning the Regulation of Transportation Network Companies, and, in connection Therewith Requiring Transportation Network Companies to Carry Liability Insurance, Conduct Background Checks on Transportation Network Company Drivers, Inspect Transportation Network Company Vehicles, and Obtain a Permit from the Public Utilities Commission.” This bill established specific requirements for drivers in the rideshare space and was a step towards regulating insurance for them.
Today, you can generally count on a rideshare driver carrying at least $500,000.00 of insurance coverage. However, just because the insurance exists, it doesn’t mean it will be available. Insurance companies may argue that the insurance doesn’t apply and that your injuries do not justify an award.
Even though multiple parties can be considered responsible for damages in the state of Colorado, it is required that rideshare companies provide primary insurance coverage for when a driver is actually signed on to their rideshare app, looking for work.
Uber and Lyft drivers are required to have motor vehicle insurance on their vehicles at all times as noted above.
If an accident occurs, it’s extremely important for the injured party to look for a lawyer that can help them to understand the law, any potentials for compensation, and how insurance factors into the overall process.
There are 3 levels of liability limits to be aware of in the state of Colorado:
If you are in an Uber or a Lyft and your driver causes the crash that injures you, then the rideshare company’s liability insurance will apply and you will have a claim directly against the insurance company. However, if another driver causes the crash while you are in an Uber or a Lyft, then Uber or Lyft’s uninsured/underinsured motorist coverage should kick in. Again, the insurance company will attempt to deny you compensation – this is what insurance companies do. You will need a fighter by your side.
Any time an accident occurs, it’s very important to dial 911, as well as to get any medical attention that’s needed. Your next step after this should be to consult with a lawyer that can help to guide you through your options in how to deal with these insurance companies in what can be a very complex situation. Make no mistake the insurance company will do everything in its power to use the complexity of the situation to deny you a recovery.
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