Liability in New Jersey Rideshare Accidents: Who’s Really Responsible?

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Ridesharing services like Uber and Lyft have become an integral part of urban transportation across New Jersey. Offering a quick and convenient way to get from point A to point B, these platforms have significantly changed how people approach their daily commutes and travel plans. However, this rapid growth also comes with increased risks, including the potential for accidents involving rideshare vehicles. 

With more rideshare vehicles on the roads, it’s important to understand the complexities of liability in these accidents. This article will explore who is responsible in the event of a rideshare accident in New Jersey and provide valuable insights for both drivers and passengers.

Determining Liability in Rideshare Accidents

In the aftermath of a rideshare accident, determining who is liable can be more complicated than in traditional car accidents. Liability is not always straightforward and can depend on several factors, including the role of the parties involved and the circumstances of the accident.

Rideshare Driver’s Responsibility

Rideshare drivers are considered independent contractors, not employees of the rideshare companies. However, they are still required to follow traffic laws and drive safely. If a rideshare driver is at fault for the accident—whether through speeding, reckless driving, or failing to follow traffic signals—the driver can be held liable for damages.

Rideshare Company’s Responsibility

While rideshare companies are not directly responsible for the actions of their drivers, they can still be held liable under certain conditions. If the driver was acting within the scope of their employment—such as when they are actively accepting or completing a ride—the rideshare company may share some liability. New Jersey courts use a legal principle called “vicarious liability” to hold employers accountable for the actions of their employees, but this principle applies differently for independent contractors.

Third-Party Responsibility

In some cases, a third party may be responsible for the accident. For example, if another driver’s negligence caused the collision, that driver could be held liable for the damages. Similarly, if a vehicle defect or road hazard contributed to the accident, the manufacturer or government agency responsible might be held accountable.

The Role of Rideshare Companies in Accident Liability

Rideshare companies like Uber and Lyft have insurance policies to cover accidents involving their drivers, but understanding how these policies work is essential for navigating liability claims.

Rideshare Insurance Coverage

Both Uber and Lyft provide liability insurance for their drivers, which varies depending on the driver’s status at the time of the accident:

App Off

When the rideshare app is off, the driver’s personal insurance is the primary coverage.

App On, No Ride

If the app is on but the driver has not yet accepted a ride request, the rideshare company provides contingent liability coverage.

Ride Accepted

When the driver has accepted a ride request but is not yet at the pickup location, the company’s insurance covers up to $100,000 in bodily injury per person and $50,000 in property damage.

Ride in Progress

During the actual ride, the rideshare company’s insurance offers up to $1 million in liability coverage for injuries and property damage.

Filing a Claim

When seeking compensation, it’s important to file a claim with the appropriate insurance provider. If the driver was at fault, you may need to file a claim with the driver’s personal insurance or the rideshare company’s insurance, depending on the situation. If a third party is at fault, their insurance might be the primary source for your claim.

Insurance Coverage and Claims in Rideshare Accidents

Understanding how insurance works in rideshare accidents is crucial for managing claims and securing compensation.

Types of Insurance Coverage

In addition to the coverage provided by rideshare companies, drivers and passengers may have their own insurance policies that can come into play. This includes:

Personal Auto Insurance

This covers damages in accidents where the rideshare app is off.

Rideshare Insurance

This is an additional policy that some drivers may carry for extra coverage.

Health Insurance

If you’re injured in the accident, your health insurance can help cover medical expenses.

Steps to File a Claim

To file a claim, follow these steps:

1. Gather Evidence: Document the accident scene, including photos of damages, contact information of witnesses, and police reports.
2. Contact Insurance Providers: Report the accident to the relevant insurance companies and provide them with the evidence you’ve collected.
3. Seek Legal Advice: Consult with an attorney who specializes in rideshare accidents to ensure that you navigate the claims process effectively and that your rights are protected.

Legal Steps to Take After a Rideshare Accident

Taking the right legal steps after an accident can impact the outcome of your claim.

Report the Accident

Notify the police and file a report. This report will serve as an official record of the accident and is crucial for any insurance or legal claims.

Consult with a Rideshare Accident Lawyer

An attorney who specializes in rideshare accidents can provide legal advice, help you understand your rights, and represent you in negotiations with insurance companies. They can also assist in gathering evidence, filing claims, and pursuing legal action if necessary.

File a Claim Promptly

There are time limits for filing personal injury claims, so it’s important to act quickly. In New Jersey, the statute of limitations for personal injury claims is typically two years from the date of the accident.

Keep Detailed Records

Maintain detailed records of all medical treatments, repairs, and communications related to the accident. This documentation will support your claim and help you receive fair compensation.

Be Prepared for Settlement Negotiations

Insurance companies may offer a settlement that is less than what you deserve. Be prepared to negotiate and, if necessary, take legal action to ensure you receive fair compensation for your injuries and damages.

Contact The Epstein Law Firm Today

Navigating the complexities of liability in New Jersey rideshare accidents requires a clear understanding of the roles of drivers, rideshare companies, and other parties involved. By knowing how liability is determined, how insurance coverage works, and the legal steps to take, you can better manage the aftermath of an accident and seek the compensation you deserve. If you find yourself involved in a rideshare accident, consulting with an experienced attorney can help you navigate the legal process and achieve a favorable outcome.

For professional legal assistance and advice, contact The Epstein Law Firm, P.A., your trusted partner in rideshare accident cases.  Contact us today at 201-231-7847 or schedule a consultation online to learn more.