Although rideshare services, like Uber and Lyft, provide convenience, they do come with some unique legal complications when accidents happen. If you have been harmed as a result of a rideshare crash, whether you are a passenger or another driver, you may wonder, is it a good idea to accept a settlement? Or should I file a lawsuit instead? 

The answer is not always simple. Making the wrong choice could leave you with far less compensation than what you are actually entitled to. It is important to understand the difference between the two, when to consider one over the other, and how legal support can make a significant difference with the outcome of your case.

Understanding the Difference Between Settlement vs. Lawsuit

A settlement refers to an agreement made between the affected party and the defendant’s insurance company. Most personal injury claims will settle before it reaches the courtroom. Going with this approach will offer a quicker resolution. But, you will need to give up your right to pursue the matter further.

A lawsuit involves formally submitting a case in court. It can result in a trial, however, many cases can be settled before it gets to that point. Lawsuits are more time-consuming and costly, but this process may be necessary if the other party’s insurance company does not want to provide you with fair compensation.

When to Consider Settling

Under certain circumstances, lawsuits may be necessary, but most rideshare accident claims are resolved through settlement. Below are some scenarios in which accepting a settlement might be the most beneficial path to take. 

Liability Is Clear

If the rideshare driver was clearly responsible for the accident and the insurance company recognizes their actions, a settlement may be in your best interest. This will help you avoid a lengthy trial and will allow you to recover compensation more quickly. 

Your Injuries Are Documented

Once your injuries are fully treated, you can document your medical bills and recovery timeline to help calculate your damages. This will give you more negotiating power and a higher likelihood of acquiring a fair settlement. 

The Insurance Offer Is Reasonable

Your Uber and Lyft accident lawyer will assess offers presented by the insurance company to determine whether it is reasonable. If not, they will continue to negotiate in hopes of reaching an agreement. If you do happen to receive enough to cover your medical bills, lost wages, pain and suffering, and other damages, it may be worth accepting to avoid the time and cost of taking the case to court. Nonetheless, always check with your legal representative before confirming settlement offers.

When to Sue

Not every case can be resolved through a settlement. Insurance companies do not always make fair decisions, and some cases may be too difficult to work out through a quick agreement. In certain situations, the only way to protect your rights and secure the compensation you deserve is by filing a lawsuit. Below are some instances in which taking this type of legal action would be your best option. 

The Insurance Company Denies Liability

If the rideshare driver or their insurance company refuses to accept liability, a lawsuit may be needed to prove fault and to recover damages. 

The Settlement Offer Is Low

Insurance companies often aim to minimize payouts. If you are presented with a settlement that does not accurately reflect the extent of damages you incurred, litigation may be needed in order for you to acquire full compensation. 

You Sustained Long-Term Injuries

Long-term injuries, like permanent impairment or chronic pain, may involve future medical costs and lost earning potential. Given the circumstances involved, a trial will allow a jury to understand your story and determine what would be a fair decision to make, rather than to have it in the hands of an adjuster. For catastrophic bodily harm, pursuing this legal structure will direct you to a clear path of obtaining maximum compensation.

The settlement itself should not just focus on covering today’s costs, but the lifetime of consequences you may endure. Proving your losses will require qualified opinions from medical and vocational rehabilitation experts. They will highlight the severity of your injury and how it will affect you long-term, helping to establish a justified dollar amount. 

Multiple Parties Are Involved

In some rideshare accident cases, more than one party may be found at fault. This includes:

• Another driver
• Rideshare driver
• Rideshare company
• Vehicle manufacturer 
• Government entity

When fault is shared or unclear, suing may be an ideal decision to pursue in order to better your opportunity of obtaining full financial recovery. It can also help you sort out any challenging liability issues that may arise, and will enforce legal repercussions onto the negligent parties who contributed to the crash. 

Special Considerations in Rideshare Accident Cases

Handling rideshare accidents is not similar or straightforward as traditional car crashes. A notable complication victims may encounter is the tiered insurance coverage provided by Uber and Lyft. Depending on what the rideshare driver was doing at the time of impact, such as waiting for a ride request or actively transporting a passenger, available coverage may differ drastically. This will affect the amount of compensation available and who will be responsible for paying it. 

Another consideration to take in is the fact that rideshare drivers are classified as independent contractors. This allows Uber and Lyft to remove themselves from liability unless specific conditions are met. Proving a connection between the company and the driver’s behavior can be challenging. In this case, you would need to seek legal representation from an expert Uber and Lyft accident lawyer to establish liability. 

Furthermore, multiple insurance policies may be presented depending on the situation. This could include:

• Rideshare company’s commercial coverage
• Rideshare driver’s personal auto insurance
• Third-party driver’s personal auto insurance
• Uninsured or underinsured motorist coverage

Determining which of these policies apply to your case and understanding the limits will require you to learn how rideshare platforms operate. 

Seek Legal Assistance From an Uber and Lyft Accident Lawyer Before Deciding

Whether you are thinking about accepting a settlement or filing a lawsuit, an important step you should consider is consulting with an Uber and Lyft accident lawyer. Such cases often involve unique legal circumstances that can be difficult to understand and handle on your own. 

With the help of an expert attorney, they will take on all aspects pertaining to the rideshare accident to ensure you are well taken care of and are in good hands. This includes performing the following actions:

• Evaluate your case
• Determine what insurance coverage will apply 
• Explain the full value of your claim 
• Prevent you from accepting lowball offers 
• Negotiate on your behalf to get you a fair settlement
• Represent you in court, if needed

Most rideshare accident lawyers will provide free consultations and operate under a contingency-fee basis, meaning you do not owe them anything unless the case is settled in your favor. Having the right guidance and support early on will give you the opportunity to make informed decisions, ensuring your rights are protected throughout the duration of the legal process.

West Coast Uber and Lyft Accident Lawyers Is Here to Help 

At West Coast Uber and Lyft Accident Lawyers, we know how overwhelming it can be to undergo the aftermath of a rideshare accident, especially if you are dealing with injuries, insurance complexities, and financial hardship. 

Our team has extensive experience handling Uber and Lyft accident claims, and can help you build a strong case that will hold the at fault party accountable for their actions. Whether you are planning to settle or pursue a lawsuit, we will guide you every step of the way and work tirelessly on your behalf to ensure you are granted the justice and compensation you deserve. 

To set up a FREE case evaluation, you can reach out to us by calling (213) 465-8682 or filling out our convenient online contact form.