Insurance Challenges in California Rideshare Accidents: What Victims Should Know

Rideshare services like Uber and Lyft have changed how California residents and visitors get around, offering a convenient alternative to taxis and public transportation. Yet, when a crash involving a rideshare vehicle occurs, victims often discover that securing compensation isn’t as simple as it should be.

The intersection of personal auto policies, corporate rideshare coverage, and evolving state laws can leave those injured in a maze of conflicting information. At National Injury Help, our San Diego personal injury attorneys understand that the unique insurance hurdles in these cases are essential for protecting your rights and securing a fair recovery.

How Rideshare Insurance Works in California

Before pursuing a claim after a rideshare accident, it’s essential to understand how insurance coverage applies in these situations. California has specific regulations that require rideshare companies to provide varying levels of insurance protection, depending on the circumstances of the accident.

The different types of insurance that apply, clarifying which policies will likely cover injuries and damages at each stage of a rideshare trip, are as follows:

• App Off: If the driver is not logged into the rideshare app, their own personal auto insurance is responsible for any accidents.
• App On, Waiting for Ride Request: If the driver is logged in but hasn’t accepted a ride, the rideshare company provides limited liability coverage, but may not cover all types of losses.
• En Route to Pick Up or During a Trip: Once the driver accepts a ride and while transporting passengers, the rideshare company’s $1 million liability policy is in effect. This coverage can include bodily injury, property damage, and uninsured/underinsured motorist protection.

Despite these protections, actually accessing compensation is rarely straightforward.

Common Insurance Challenges Rideshare Victims Face

Even with robust insurance requirements on paper, real-world rideshare accidents present a series of obstacles for injured victims. Insurance companies are quick to defend their bottom line, and determining coverage can be confusing and time-consuming.

The most common insurance roadblocks faced by those hurt in rideshare incidents include:

• Disputes Over Driver Status

Insurance companies may try to deny or reduce claims by arguing about the driver’s exact status during the crash. Determining whether the rideshare company’s insurance applies or is up to the driver’s personal insurer is often a sticking point.

• Multiple Insurers, Multiple Headaches

In many cases, several insurance companies may be involved, each with its own policies, exclusions, and interests. Rideshare drivers’ personal insurers may deny claims if they find out the driver was working at the time, while rideshare companies might point fingers at personal insurers.

• Coverage Gaps

If a driver’s policy doesn’t include rideshare activity (often called “period 1” coverage), there can be a gap between when the app is on but no ride is accepted, leaving victims fighting for compensation.

• Low Settlement Offers

Insurance companies are in the business of minimizing payouts. Even if coverage applies, initial settlement offers may fall far short of what victims need for medical bills, lost wages, and pain and suffering.

Get Help from National Injury Help

Victims of rideshare accidents shouldn’t have to navigate these insurance challenges alone. An experienced legal team can help untangle the confusion, level the playing field with insurance companies, and fight for the compensation you deserve. At National Injury Help, our San Diego County personal injury attorneys have extensive experience handling rideshare accident cases and can guide you every step of the way.

Contact National Injury Help today for a free consultation. Let us help you understand your options and pursue the recovery you need to move forward.