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Things Chicago Accident Victims Need to Know About Rideshare Insurance Coverage After an Uber or Lyft Crash

What to do if you are injured in an Uber or Lyft accident: insurance claims.

Ridesharing in Illinois and Indiana, particularly in the Chicago metropolitan area (“Chicagoland”), is becoming more and more popular.  Uber and Lyft, the two leaders in Chicagoland ridesharing, are being used in so many ways other than a ride home after a late Saturday night.  Consider this: some people are choosing to use a rideshare instead of an ambulance to get needed medical care.  Read, “Patients are relying on Lyft, Uber to travel far distances to medical care,” written by Michael Scaturro and published by NBC-Chicago on October 17, 2024. 

Of course, as more and more people choose to be riders in an Uber or Lyft, the likelihood of being a victim of a motor vehicle accident rises.  The risks are high. Chicago ranks third in the world for having the worst traffic congestion.  See, INRIX 2024 Global Traffic Scorecard. In 2022, the City of Chicago confirmed that 21,747 people were seriously injured or killed in motor vehicle accidents within the city limits alone.   

For more, read: Traffic Fatalities in Chicagoland: High Risk of Deadly Chicago Car Crash;  Why Are There So Many Serious or Fatal Semi-Truck Accidents in Chicagoland? and Uber Accidents in Chicago: The Growing Danger of Serious Injury in an Uber Rideshare Car Crash.

Victims Involved in a Chicago Uber or Lyft Accident: Immediate Steps

In some ways, being in a motor vehicle accident involving a rideshare is not any different than being in any other type of crash.  Particularly in a serious or deadly crash, priorities are clear. 

The accident victims and others on the scene need to take steps to help the injured, make things safe for everyone (including passing traffic), and prioritize getting emergency medical care and the help of law enforcement.  Read, Chicagoland:  5 Things To Do If You are in an Uber or Lyft Ridesharing Accident.

However, things veer quickly from a legal standpoint when a ridesharing vehicle is involved in a crash.  This is because of the unique characteristics of the ridesharing service itself, and how Uber and Lyft deal with legal liability for damages suffered by the accident victims and their loved ones.

Reporting a Chicago Rideshare Accident Involving Uber or Lyft

Both Uber and Lyft make things easy for anyone suffering harm in a rideshare crash.  They both offer online reporting, which varies depending upon who is filing the report: drivers, riders (passengers), or third parties.

Lyft has a single site page for reporting by drivers, riders, and others.  Uber has three separate links, one for drivers; one for passengers (riders); and one for third parties.  Uber has a separate page asking for details concerning a Uber Taxi trip

Reporting accidents to the ridesharing company alerts their insurance carrier about potential coverage under their liability policy for the harm sustained in the accident.  Both Uber and Lyft have purchased similar types of insurance policies to cover their legal exposure for ridesharing accidents.

Uber or Lyft Insurance Coverage Depends Upon the Driver’s App

However, things get complicated fast.  From a legal perspective, both the ridesharing company and the insurance carrier providing the policy are very interested in keeping their financial obligations to help accident victims as low as possible.

One way they do this is by defining the crash according to the ridesharing characteristic of being an app.  Coverage depends upon the app itself (see: Lyft insurance coverage; Uber insurance coverage):

1. Was the driver’s Uber or Lyft app off at the time of the crash?

If so, the ridesharing company and its insurance carrier will argue they have no responsibility to cover the damages resulting from the accident.  They will deny coverage and point to the driver’s personal insurance for car accident liability.

2. Was the driver’s Lyft or Uber app on, but waiting for a ride request?

If the ridesharing driver is on the job, and has logged into Uber or Lyft, then the driver is ready to pick up and drive riders to their chosen destination.  They are waiting for a request.  If the driver has a crash during this time, and the accident meets their policy conditions, insurance may offer up to $50,000 for each injured person; $100,000 total for bodily injuries per accident; and up to $25,000 in property damage.

3. Was the driver’s Uber or Lyft app on, and a ride accepted?

The ridesharing driver may receive a ride request and accept the ride. When an accident happens either on the way to pick up the rider or during the ride itself with passengers in the vehicle, Uber and Lyft will cover up to $1 Million in liability damages with separate uninsured/underinsured motorist bodily injury coverage. 

Chicago Rideshare Accident Claims Under Illinois Law

For anyone who is injured or killed in a motor vehicle accident involving a Chicago rideshare, the state law of Illinois applies and defines by statute and case law the rights of the accident victims to seek recompense from all those who are legally responsible for the accident. 

Personal injury, premises liability, and negligence law may all impact a rideshare accident in the Chicagoland area.  Each case is unique and deserves individual attention and respect with a thorough investigation into the crash.  More than one individual or entity may be revealed by accident reconstruction experts to be legally liable to the victims and their loved ones

Damages may include things like: medical expenses (past, present, and future); rehabilitation costs; pain and suffering; lost wages; lost earning capacity; loss of a normal life; and more.  Read, 10 Types of Injury Damages That May Be Awarded to Accident Victims; and Fatal Accidents and Wrongful Death Lawsuits in Indiana and Illinois.

In ridesharing accidents, the Uber or Lyft drivers are held to the state standards for all drivers and must operate their vehicles in a reasonable and prudent manner.  Failure to do so means they are legally negligent and liable for any resulting harm to their riders and others involved in a rideshare crash.  Uber and Lyft, as the ridesharing companies, may also be accountable here. 

However, others may also be liable in ridesharing accidents.  Other drivers may be liable for their negligence.  The Uber or Lyft vehicle (or other vehicles in the collision) may have defective parts that fail and cause an accident.  Landowners and tenants may fail in their duties, as well, where premises conditions contribute to the event. 

Filing an insurance claim after a ridesharing accident involving Uber or Lyft does not negate these very real legal duties that exist under Illinois law.  These insurance policies exist only to help those who pay for their coverage to cover the financial hit in the event of being found liable for the crash. 

For more read:

Ridesharing is very popular in Chicago but for those who are hurt in a rideshare crash, the law is more complicated for the accident victims and their loved ones.  Please be careful out there!

Contact Us

If you or a loved one has been seriously injured or killed due to the wrongful acts of another, then you may have a legal claim for damages as well as the right to justice against the wrongdoer and you are welcomed to contact the Northwest Indiana and Chicagoland personal injury lawyers at Allen Law Group to schedule a free initial legal consultation.

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