Ridesharing services are convenient and often less expensive than traditional taxis. However, app-based rideshare services are legally distinct from common carriers like taxis or buses. Those distinctions have significant implications for passengers and other drivers who might get into an accident with an Uber driver.
Rideshare drivers are independent contractors who carry their own automobile insurance. Uber also provides coverage, but only under specific circumstances. If you have been in an accident with an Uber driver—as a passenger or another driver—their coverage limits could impact the compensation you recover.
Our legal team is familiar with the insurance policy requirements for Phoenix Uber drivers. A rideshare accident attorney could walk you through the various scenarios and help you receive a fair settlement for your losses.
Arizona Revised Statute §28-4009 requires all drivers to maintain a minimum amount of liability coverage. As of July 2020, drivers must carry $25,000 coverage for personal injuries to one person, $50,000 coverage for injuries to more than one person in a single incident, and $15,000 coverage for property damage. Drivers may opt to buy coverage with higher limits.
Liability coverage reimburses people other than the insured for their losses up to the policy limits if the insured is at fault in an accident. The insured could purchase MedPay to cover their injuries if they are at fault in an accident. Comprehensive coverage pays for damage to the insured’s vehicle if they are at fault. This type of insurance is not mandatory under Arizona law.
Uber’s insurance policy applies when the driver is working, but full coverage does not apply until a driver accepts a ride. Independent contractors for Uber may purchase a rideshare endorsement, which covers drivers as they are roaming or waiting to accept a ride, but it is not a mandatory insurance policy.
Uber provides insurance that will cover passengers’ and other individuals’ losses if the rideshare driver is at fault in an accident. However, the coverage is tied to the motorist’s app activity at the time of the incident. An injury attorney could review a driver’s app history to determine which insurance is responsible for covering a person’s losses.
If a driver is offline or not logged into Uber when the accident occurs, the driver’s personal insurance covers any losses. However, the driver’s personal coverage ceiling could limit an injured person’s ability to recover all their damages.
Once a driver logs in to Uber and is waiting to accept a ride request, the company’s insurance will provide limited coverage for their at-fault driver. In this situation, Uber’s liability coverage limits are $50,000 for bodily injury of one person, $100,000 aggregate for bodily injury of more than one person, and $25,000 for property damage.
Uber’s full coverage does not apply until a driver has accepted a ride. This policy provides $1,000,000 in third party liability coverage for death, injury, and property damage to passengers and others injured in an accident that is the rideshare driver’s fault. If the Uber is in an accident and another driver is at fault, the rideshare company’s insurance will provide coverage to the driver and passenger if the at-fault driver’s insurance is insufficient.
Uber’s luxury services—Uber Black and Uber Black SUV—require drivers to have commercial insurance. Commercial driver insurance has higher coverage limits than personal liability insurance typically offers.
Arizona requires commercial drivers using vehicles that seat fewer than eight passengers to have $250,000 liability coverage per incident and $250,000 of uninsured motorist coverage. For vehicles that can transport more than eight and up to 16 passengers, the driver’s commercial insurance must provide $750,000 of liability coverage and $300,000 of uninsured motorist coverage.
In any car accident case in an at-fault state, insurance companies argue over who is responsible for the crash and who must pay the injured parties. In an Uber accident case, this dynamic is especially intense. The rideshare company might argue that a driver was offline or had not yet accepted a ride request to avoid liability.
An experienced lawyer could help you understand the insurance policy requirements for Phoenix Uber drivers and prove their coverage should apply. Call today to schedule a case review and speak with a dedicated legal advocate.