By Dan Noll on February 26th, 2025 in Articles, Car Accident
Injured in an Uber Accident? Lyft Accident? Our Springfield Car Accident Lawyers Explain How Rideshare Insurance Coverage Works in Illinois
One of the fastest growing areas in transportation is ridesharing, specifically through Uber and Lyft. In fact, statistics released from Uber reveal that they complete over 2.6 billion rides worldwide, with a majority in the United States. Whereas Lyft released statistics indicating that they do roughly 828 million rides a year, also mostly in the United States. Both of these sets of statistics indicate that ridesharing usage is rapidly increasing, and other information further reveals that drivers log almost 20,000 miles every year driving for either of these companies – including right here in Illinois. Although these services often have fairly easy apps to navigate, the Springfield Uber and Lyft accident lawyers at the Noll Law Office know that determining how ridesharing insurance coverage works after a crash is not nearly as easy.
Indeed, despite Uber and Lyft helping many people safely get around Illinois – especially when it comes to drugged or drunk driving – other statistics suggest that ridesharing apps have actually resulted in a 2-3% increase in traffic fatalities. Further research from the University of Illinois Chicago reveals that roughly one-third (33%) of ridesharing drivers reported having an accident while working. Other research based on statistics from Illinois indicate that, although alcohol-related accidents have decreased, other types of ridesharing-related accidents have increased and may even offset the decrease in drunk driving crashes. Thus, it is important for victims and their families to know how rideshare insurance coverage works and when to contact a Springfield car accident lawyer for help.
At the Noll Law Office, their compassionate and experienced legal team understands the complex matrix of ridesharing insurance. There are many different levels of possible auto insurance, some of which will not be offered by adjusters unless you know it is there. This means that some seriously injured victims may not recover the total amount of their damages that they may be entitled to if they do not have an experienced Springfield car accident lawyer on their team. To schedule your free case evaluation with the experienced legal team at the Noll Law Office, call them today by dialing (217) 414-8889.
Why Ridesharing Accidents are Different Than Other Types of Car Accidents in Illinois
When it comes to most motor vehicle accidents, the parties involved are often private citizens. Since Illinois is an at-fault insurance state, the parties will often work with the other’s insurance carrier to have the responsible party pay for the damages caused in a vehicle crash. Sometimes a business vehicle may be involved in a crash, which usually follows the same time of claim involving a victim and the business.
However, with ridesharing crashes such as Uber accidents or Lyft accidents, the insurance situation is much different. Rather than first during to the at-fault driver’s insurance, a determination will need to be made as to whether the ridesharing driver was engaged in a ride, on the way to a pickup, awaiting assignment, or was on private time/offline. This determination will often dictate what insurance may apply first to a victim, and what insurance may be available overall for a victim of a ridesharing crash.
Since the ridesharing driver is often the only one after a crash who has access to what he or she was doing on the app, victims often need to have an experienced Springfield car accident lawyer to investigate and determine what and how ridesharing insurance coverage works for their specific case.
Coverage Periods for Ridesharing Insurance
After a ridesharing accident in Illinois, determining what insurance coverage applies is often the first step in an injury claim. Generally, rideshare insurance coverage operates on a period-based system which determines the applicable coverage based on the driver’s status at the time of the auto accident. This analysis applies whether the victim was a rider or nearly any other driver, bicyclist, pedestrian, or any individual that was injured in a crash.
The different insurance coverage periods and what coverage applies are the following:
Offline
Sometimes known as “Period 0,” a ridesharing driver who was involved in a motor vehicle accident when not logged into the app is considered “offline.” That usually means the vehicle was for personal use and not for a ridesharing service.
When a driver is offline and no engaged in any ridesharing services, the driver’s personal auto insurance policy applies as it normally would.
Period 1 (waiting for a ride request/assignment)
When the driver is logged into the app but has not yet accepted a ride request or is waiting for a request/assignment, coverage is often the most difficult to prove and recover for a victim. That’s because a driver is technically engaged in work by cruising around for an assignment – which can be location-based. However, a driver is not performing a service yet for the ridesharing company, as it is not going to a pickup or completing a ride, but rather waiting for an assignment.
As a result, generally, most ridesharing companies provide what is known as contingent liability coverage. This type of coverage applies only where a driver’s personal auto insurance policy denies a claim. The amount of coverage frequently changes and is different based on the ridesharing company; this is Uber’s current coverage/declarations page and this is Lyft’s current coverage/declarations page.
Period 2 (traveling to pick-up rider)
After accepting a ride request/assignment and traveling to pick up that rider/riders, the ridesharing company’s insurance policy triggers to provide for a higher level of coverage than for Period 1 noted above. Both Uber and Lyft provide coverage limits of $1 million, which can be greater in certain states/geographic markets.
Additionally, these ridesharing companies also provide uninsured motorist (UM) and underinsured motorist (UIM) coverage in the event that an at-fault driver causes an accident and cannot cover the victim’s damages.
Period 3 (driving rider to destination)
This period applies when a driver is engaged in an active ride with a rider or riders in the vehicle, and is traveling to the final destination. During this period, the ridesharing insurance companies’ policies are the maximum coverage limits that apply for both Uber and Lyft. These amounts are usually both for $1 million, although that depends on the state/geographic market.
Moreover, there is also UM and UIM coverage that applies like above. However, the limits are usually higher for passengers in the vehicle – depending on the company and the state.
Other Possible Types of Ridesharing Insurance Coverage
In addition to the policies noted above, there are other possible insurance coverages that may apply in a ridesharing accident. These other types of policies often must be determined on a case-by-case basis, which means victims will need an experienced Springfield car accident lawyer to investigate and evaluate their claims.
Some of the other possible types of ridesharing insurance coverage include the following:
- Victim’s UM/UIM Coverage – a victim injured in a ridesharing accident may be entitled to use his or her UM/UIM coverage. However, the ridesharing auto insurance’s UM/UIM coverage would apply first and would need to be exhausted first. That means a victim may only be entitled to recover compensation when his or her families are greater than $1 million and where the victim has UM/UIM coverage above $1 million (which is rare for private individuals)
- Workers’ Compensation – a ridesharing driver who is injured in a single-vehicle accident or due to his or her own negligence may be entitled to workers’ compensation benefits. This often functions as the exclusive remedy, meaning that a rider often cannot sue their employer (Uber/Lyft) when they are engaged in working for them. However, if a third-party caused the accident, such as a negligent driver, a ridesharing driver may be entitled to bring a third-party claim
- Defendant’s money/assets – in certain instances where a defendant has inadequate insurance coverage to satisfy a victim’s damages, and where a defendant has certain money or assets that are not barred by certain creditor exemptions, a victim may be entitled to go after a defendant’s assets. This is not common and can be difficult, but is possible and appropriate where a victim’s damages are significant, life-changing, or fatal
- Other possible coverage that a Springfield Uber and Lyft accident lawyer may discover during a case consultation.
Still Unsure How Rideshare Insurance Coverage Works? Contact Our Springfield Car Accident Lawyers for a Free Consultation
Determining insurance coverage in ridesharing accidents has always been historically very difficult. Although the law has greatly improved, especially in Illinois with the laws and regulations governing Transportation Network Companies (TNCs), there are still many complicated issues that often arise. These insurance issues are also in addition to handling liability and damages, especially where a victim has catastrophic or fatal injuries.
That’s why victims and their families who have been injured in any type of ridesharing accident in Illinois, or any personal injury accident throughout Illinois, should contact the Noll Law Office for help. They are fifth-generation lawyers who are dedicated to helping victims and their families recover compensation for their pain and suffering, lost wages, medical bills, and other damages. Schedule your free consultation with their Springfield car accident lawyers to learn more about your rights to compensation by dialing (217) 414-8889 or by sending a message here.