Ridesharing services have become commonplace today. Instead of calling for a cab, most people use the apps on their cell phones to request rides with companies like Uber or Lyft.
However, though Uber might make hailing a ride incredibly convenient, it can also complicate things where car accidents are concerned. In other words, when you are involved in an accident with an Uber driver, the insurance claim process is more complex than it might be for any other car accident situation.
The first reason for this is that Uber has a complex insurance coverage policy that makes it more challenging to file a claim against them. But the second reason is that Kentucky, in particular, is a no-fault state, which can also make filing claims more confusing.
What happens when you sustain car damage in an accident with an Uber driver? Does Uber Cover My Car in an Accident?
Our Kentucky car accident lawyers and Uber accident lawyers have the answers you need and more below.
How Uber’s Insurance Coverage Works
First, let’s look at how Uber’s insurance policy works.
Technically, Uber drivers are hired as independent contractors, not official employees. As such, this allows Uber to avoid providing insurance coverage for their drivers under any circumstances. For this reason, Uber requires its drivers to carry their own personal liability insurance coverage in case they cause an accident.
However, in certain situations, Uber has an insurance policy that will kick in to cover accidents. The company essentially breaks these situations down into three phases or periods to determine when their coverage applies:
- Phase 1: This is the period when the Uber driver is not actively using the app and is off-duty. If the driver causes an accident at this time, you must file a claim against the Uber driver’s personal insurance.
- Phase 2: This period is when the Uber driver is logged in and on duty, but they have not yet accepted a ride. If the driver causes an accident during this period, Uber’s third-party liability coverage applies, which is $50,000 per person for bodily injury, $100,000 per accident, and $25,000 for property damage.
- Phase 3: During this period, the Uber driver is on duty, has accepted a ride, and is actively transporting a passenger to their destination. If the driver causes an accident during this period, Uber has a $1 million insurance policy that applies for coverage of injuries and property damage (car damage).
Does Uber Cover My Car in an Accident?
Based on the information above, Uber’s insurance does cover car damage if the accident is the fault of the Uber driver AND if the accident occurs during Phase 2 or Phase 3. If the accident occurs during Phase 1 and is the fault of the Uber driver, whether or not your car damage is covered will depend on the Uber driver’s personal insurance policy and what their coverage limits are.
In Kentucky, all drivers, including Uber drivers, must carry at least the state minimum for liability insurance, which is $25,000 per person for injuries, $50,000 per accident for injuries, and $10,000 for property damage.
However, Kentucky is a no-fault state, which can complicate things. In Kentucky, drivers can choose to opt into no-fault insurance coverage, also known as Personal Injury Protection (PIP) insurance. This insurance provides coverage no matter who is at fault for an accident.
If you get into an accident with an Uber driver and you have opted into no-fault insurance, then you will file a claim with your own insurance company for coverage. Unfortunately, PIP benefits do not cover car damage. It only provides up to $10,000 for medical expenses, lost wages, and some other out-of-pocket costs. You would need collision coverage and comprehensive coverage on your own policy to cover your car damages.
Can I Sue Uber for a Car Accident in Kentucky?
Understandably, Kentucky’s no-fault insurance policies can make filing Uber accident claims more complicated than they already are. However, it’s important to note that Kentucky is a “choice no-fault” state, which means you do not have to opt into no-fault insurance.
If you opt out of the no-fault system, you preserve your right to file a claim or a lawsuit against an at-fault driver. In the case of Uber accidents, if the Uber driver is at fault, and if the accident falls within Phase 1 or Phase 2 as described above, then you can take legal action against Uber.
However, even if you are eligible to file a lawsuit against Uber for a car accident, there is no guarantee you will be awarded the fair settlement you deserve. Uber car accident settlements can vary depending on how strong of a case you can build against Uber and their at-fault driver.
What this means is that your best bet for navigating your claim and winning your case is by working with an Uber accident lawyer. A lawyer will be able to help you fully understand your options and who you can file a claim against.
If you have grounds for a lawsuit against Uber, they can help you gather evidence and develop a strategy to not only win your case but to recover the full and fair settlement you deserve to pay for your damages, including your injuries and your car damage.
Trust McCoy & Sparks—Premier Personal Injury Attorneys in Central Kentucky
Uber accident cases are complex. Let our expert attorneys at McCoy & Sparks help you navigate the process and win your case. You owe us nothing unless we recover compensation for you. Make the right call to (844) 4KY-WINS for a risk-free consultation with one of our Uber accident attorneys today.