Ride-sharing has become a part of everyday life. With just a tap on your smartphone, you can get a ride almost anywhere, anytime. Uber and Lyft have transformed how we travel—but what happens when something goes wrong? If you’re injured in a rideshare accident caused by a rideshare driver, can Uber or Lyft be held responsible?

Are Ride-Share Companies Responsible for Their Drivers?

Uber and Lyft don’t classify their drivers as employees—they’re labeled independent contractors. This distinction helps these companies avoid liability in many situations. Under traditional legal doctrine, companies aren’t generally responsible for the actions of independent contractors.

But here’s where it gets interesting: courts have started to push back. In some cases, Uber and Lyft have been held responsible, especially when victims can show the company was negligent in hiring, monitoring, or retaining dangerous drivers.

Key Scenarios Where Companies May Be Held Liable:

• The driver had a criminal record or dangerous driving history, and Uber/Lyft failed to screen them properly.
• Previous complaints were made about the driver, and the company didn’t act.
• The company encouraged unsafe driving behavior through performance incentives or pressure to complete more rides.

What is Ride-Share Insurance Coverage?

Uber and Lyft use a three-phase insurance model, depending on what the driver is doing at the time of the incident:

1. App Off: The driver’s personal insurance is the only coverage.
2. App On, No Ride Accepted: The company provides limited liability coverage.
3. Ride Accepted or Passenger Onboard: Uber and Lyft offer up to $1 million in liability coverage.

While that sounds generous, getting access to these funds isn’t always easy. Insurance companies will look for any excuse to delay or deny a claim, often shifting responsibility between the driver and the company.

When the Driver Is Solely Responsible

Not every accident leads back to the company. If the driver was off-duty or acting in a personal capacity, Uber and Lyft are typically not liable.

Common examples where the driver may be the only liable party:

• They weren’t logged into the app.
• They accepted a ride outside of the platform (off the books).
• They engaged in behavior unrelated to the ride, such as a personal errand or misconduct not connected to their job.

In these cases, claims must go through the driver’s personal insurance, which may not offer enough coverage—especially for severe injuries.

Negligent Hiring and Driver Screening Issues

Uber and Lyft promote their driver screening processes as thorough and reliable. They typically run background checks looking for:

• Criminal convictions
• DUIs
• Major traffic violations

But many loopholes and limitations exist. For instance, some background checks only go back seven years, and not all states require fingerprinting. As a result, people with violent pasts or a history of reckless behavior can slip through the cracks.

Worse, there have been multiple cases where Uber and Lyft failed to act even after receiving complaints about a driver. When a company ignores red flags, that opens the door to a negligent hiring or negligent retention lawsuit.

Legal Precedents You Should Know

Over the past few years, several high-profile lawsuits have paved the way for victims to hold ride-share companies accountable:

• In California, a sexual assault case against Uber revealed flaws in its driver screening system. The company faced allegations of failing to remove a driver with prior complaints.
  
• A wrongful death lawsuit in Texas against Lyft pointed to the company’s algorithms pressuring drivers to speed or run lights, contributing to dangerous behavior behind the wheel.
  

These cases highlight a key shift: Courts are more willing to examine how ride-share companies operate, and whether their systems contribute to unsafe conditions.

What Happens If You’re Injured? Steps to Take Immediately

If you’re hurt in a ride-share accident—whether you’re a passenger, pedestrian, or another driver—your actions in the first few hours and days can determine your case’s outcome.

Step-by-Step Advice:

1. Seek medical attention immediately.
2. Report the accident to Uber or Lyft via the app.
3. File a police report—don’t rely solely on in-app reporting.
4. Document everything: photos, names of witnesses, and driver info.
5. Consult an experienced attorney before dealing with insurers.

Why the last step? Because Uber and Lyft’s insurance partners are not on your side. Their goal is to pay out as little as possible. They’ll look for ways to disqualify your claim or redirect it to someone else.

Suing Uber or Lyft: What You Need to Know

Sometimes, filing an insurance claim isn’t enough—especially if your injuries are severe or if liability is disputed. In those situations, a lawsuit may be the best path forward.

But here’s where it gets tricky: both companies have arbitration clauses in their user agreements. These clauses can limit your ability to file a lawsuit in public court. Still, courts have sometimes ruled these clauses invalid in personal injury and wrongful death cases.

A good legal team can help:

• Challenge unfair arbitration clauses
• Gather evidence of corporate negligence
• File a suit against both the driver and the company

If Uber or Lyft failed in their duty to protect you, they may owe you compensation for medical bills, pain and suffering, lost wages, and more.

The Bottom Line: You May Be Entitled to Compensation

Despite their sleek apps and polished PR, Uber and Lyft are corporations looking to protect their bottom line. When a negligent driver causes harm, they may try to avoid responsibility, but the law is increasingly on the side of victims.

Whether the driver made a mistake, or the company turned a blind eye to red flags, you deserve answers—and fair compensation. If you or a loved one were injured in an Uber or Lyft accident, don’t navigate the legal maze alone. A rideshare lawyer from West Coast Uber and Lyft Accident Lawyers can:

• Investigate the incident
  
• Handle all communications with insurers
  
• Build a case against the responsible party (or parties)
  
• Fight for the maximum compensation you deserve

Call us today at (213) 465-8682 or fill out our quick online contact form to schedule your free consultation. We are available 24/7, and you won’t pay a dime unless we win your case. Let us help you move forward with the justice and support you deserve

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