Taxi, Uber, and Lyft Accident Lawyer New Orleans

Ridesharing has transformed the way we look at transportation and has provided a wonderful convenience to the public in new profound ways. With change comes some complications, as platforms such as Uber and Lyft have a different approach in regards to how traffic accidents are dealt with. Unlike traditional taxi accidents, ridesharing platforms depend upon the commercial insurance coverage of individual drivers. In contrast, a taxi company will have its own taxi cab insurance manufactured for the purpose of covering car accidents, as these insurance policies cater to the taxicab industry. You can learn to take steps of recourse by comparing the two in detail as an accident victim.

If you recently had a traffic accident with a rideshare or taxi company, an accident lawyer can provide useful information and direction. Contact us for a free consultation to learn more.

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An Overview of Taking Action After a Rideshare or Taxi Accident

A regular car crash is one thing, but a collision with a company vehicle can add a new layer of complexity. If injured victims know the difference between how insurance companies handle different types of car crashes, it will help them better understand how to respond to this difficult situation.

A Rideshare Drivers’ Risk of Accident Compared to Taxi Drivers

Uber and Lyft Drivers go through a background check as well as a review of their driving background and history. However, they may not be experienced drivers before they worked for their company as a gig economy worker. For that reason, there may be higher risks when chosen as a rideshare driver. These drivers depend on their GPS system, and this can lead to many distractions away from their driving focus. They are often unfamiliar with the roads they travel, which means that confusion and lack of confidence may lead to a higher risk of injury. 

Taxi drivers have a crash rate that is one-third less than that of other drivers and are very careful about their driving record. This is because their entire livelihood depends on their driving ability. They tend to have a long history of driving, which gives them more experience in safety practices when commuting from one area to the next. Additionally, they are more knowledgeable about the areas they typically work in and remember local neighborhoods like the back of their hand. In sharp contrast to rideshare drivers, taxi drivers are less likely to cause an accident.

How Rideshare Companies Manage Traffic Accidents

Rideshare drivers have commercial insurance coverage in the case of an accident. The level of coverage is dependent upon the rideshare stage an employee is in, which is labeled by periods between zero to three. 

Period 0: There is no commercial insurance coverage when not logged into a Lyft or Uber drive share app.

Period 1: The driver can receive around $50 thousand per injured person, $25 thousand property damage liability, and $100,000 total injury liability coverage if the driver is actively logged into the app but hasn’t picked up the guests.

Period 2: The liability coverage exceeds $1 million dollars if the driver has picked up a guest and taken them on a trip.

Period 3: The liability coverage might go beyond that of $1 million to cover additional damage to the driver’s car if the passenger is at the drop-off location.

The only reason it is difficult to proceed with a lawsuit after an accident has occurred is because of the issue with rideshare company drivers being independent contractors. Who takes responsibility for the accident is often shifted to the drivers and it is in a grey area of whether a rideshare company can be sued or not. They often dodge any legislative efforts and are successful because drivers are not classified as employees of the company. Besides that fact, a taxi driver will be covered by their company’s insurance policy, which covers the lawsuit costs if a passenger is injured.

Contact a Professional for Advice

When seeking additional advice regarding how to approach a rideshare or taxi company for collision damages, speak with a professional who has experience in this jurisdiction. Contact us today for a free consultation.


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