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Understanding Compensation for Rideshare Accidents: Taxis to Uber and Lyft

From taxis to limousine services, call vans, and recently Uber and Lyft, the variety of transportation means to reach destinations quickly and easily is continually increasing. Particularly, the number of users for rideshare services like Uber and Lyft is exploding, with about 50,000 new drivers joining monthly. Regardless of the mode of transportation, it’s clear that passengers involved in accidents have the right to compensation. However, in the case of Uber, due to its unique operating system, the method of obtaining compensation after an accident can differ from regular traffic accidents. So, what should you do if you’re involved in an Uber accident?

In any traffic accident, and especially in Uber accidents, prompt and definitive accident management is essential. In most areas, including New Jersey where the main office of Song Law Firm is located, Uber drivers do not have professional licenses for transportation, nor are they trained or educated in accident response. Therefore, many fail to take timely post-accident actions. Sometimes, victims leave the accident scene believing the Uber driver will handle it appropriately, only to realize too late that the driver did not report the accident. Thus, if you’re involved in an Uber accident, it’s crucial to stay at the scene, report to the police, and ensure an accident report is filed.

Additionally, you should obtain the contact information of the Uber driver and, if another vehicle is involved, the contact details of that driver. If injured, inform the responding police clearly and seek immediate treatment to underscore the severity of the injuries. If the injuries are not severe enough to require immediate departure from the scene, take photos and gather as much evidence as possible to prevent the Uber driver or the other driver from denying responsibility later.

The progression of the case will completely depend on the victim’s insurance status and the exact circumstances of the accident, so it’s imperative to consult a personal injury attorney. In Uber accidents, identifying the liable party for compensation claims can be complex, as multiple parties may be responsible. The Uber driver uses their personal vehicle, so both Uber’s insurance and the driver’s personal insurance may try to shift the responsibility to each other. If another driver is involved, three insurance companies may end up in a dispute.

Fortunately, Uber has recently improved its passenger liability protection system and significantly increased compensation limits. For instance, in New Jersey, passengers involved in Uber accidents can theoretically receive up to $1.5 million in compensation. Additionally, if unsatisfied with the settlement offered by Uber, unlike other New Jersey accident victims, you can file a civil lawsuit without needing to meet stringent criteria regarding the severity of injuries.

However, to receive compensation, you must first report the accident to Uber, which can be challenging due to high call volumes. Once reported, Uber’s insurance company will contact you for repeated statements from the victim. Often, under continuous pressure, victims agree to provide statements, which the insurance company may use to deny or reduce compensation. For example, if a victim fails to fully explain their injuries, this can be used as evidence that the victim was not severely injured, or they may inadvertently make statements implying their own fault.

Many victims, trying to resolve the case without hiring an attorney, end up signing waivers of rights without receiving proper compensation. To ensure your legal rights as a victim are fully protected, it’s crucial to hire a personal injury attorney immediately after the accident to prevent unfavorable statements and secure the maximum compensation. Uber accidents require a strategic approach from an experienced attorney due to the different compensation structures and the possibility of suing multiple defendants.

For any inquiries related to personal injury law, please contact us anytime at pi@songlawfirm.com.

Disclaimer: This column is intended for informational purposes only and does not constitute legal advice. For specific guidance tailored to your situation, please contact us at 201-461-0031 or email pi@songlawfirm.com for a consultation.

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