Why Rideshare Accident Claims Take Longer to Settle – And What You Can Do

Investments in transport-hailing services or applications such as Uber and Lyft have changed the transportation systems among people in the community. However, ridesharing accidents are similar as they may involve multiple cars by different insurance companies and may take time to process the claims. If you have been injured in a rideshare accident, understanding the factors contributing to longer settlement times can help you navigate the process and receive the compensation you deserve. In this article, we’ll explain why rideshare accident claims take longer to settle and what steps you can take to protect your rights.

Understanding the Complexity of Rideshare Accident Claims

This is true, especially if one of the vehicles involved is rideshare because the claim gets complicated. It is often a two-party affair involving the driver and the other car’s driver, but with rideshare, there are multiple players. These include the rideshare company (Uber or Lyft), the driver, the passengers, and any other parties involved in the accident.

Additionally, the nature of rideshare services means that different insurance policies might come into play depending on the driver’s status at the time of the accident. For example, if the driver is logged into the Uber or Lyft app but has not yet accepted a ride request, their car insurance might be the primary coverage. However, if the driver has an actively assigned passenger, the ridesharing company’s commercial insurance policy is typically implemented in the accident.

This makes it challenging to decipher which insurance company will be liable to compensate which claim, leading to long delays in compensating it. A Pasadena Uber accident attorney can help you navigate this complication and ensure your case is handled appropriately.

The Role of Multiple Insurance Providers in Rideshare Accidents

This is one of the many reasons why settling rideshare accidents in such a short time seems impossible, as many insurance firms are involved. Rideshare companies like Uber and Lyft carry commercial insurance policies for their drivers, but these policies often vary depending on the situation of the accident. The timing of the accident and the driver’s status at the time of the crash will play a significant role in determining which insurance applies.

In many cases, the rideshare driver’s insurance might be the first to cover damages if the driver was off-duty or not actively driving for Uber or Lyft. However, suppose the driver used the app to accept a ride or transport a passenger during the accident. In that case, the rideshare company’s insurance may be responsible for covering the damages.

What often results from this system of layered insurance policies is that the issue of liability and coverage limits takes time for insurance companies to solve. Every carrier may investigate the case independently, which will take a lengthy time to complete the claims. Further, the rideshare insurance company may deny the claim or award a small sum, hoping to cover their losses.

Those who find themselves in a Lyft accident need to have professional attorneys who deal with Lyft accident phenomena and who will represent them at this stage.

Why Rideshare Companies Resist Quick Settlements

Rideshare companies often need to work on settling claims quickly due to the potential financial consequences and the high number of daily accidents. Uber and Lyft, like any business, are focused on minimizing their liability and reducing the costs associated with accidents involving their drivers. They may attempt to delay or deny claims to avoid making payouts, especially if they believe they can argue that their driver was not entirely at fault.

Another reason rideshare companies may resist quick settlements is the possibility of a lawsuit. If the insurance coverage does not fully compensate you for your injuries or damages, you may need to file a lawsuit against the driver or the rideshare company. Rideshare companies often delay settlement to discourage legal action, pushing claimants into accepting lower settlements.

For those who have sustained injuries in a rideshare accident, it’s essential to have a knowledgeable attorney who understands the tactics rideshare companies use to delay or undervalue claims. A Pasadena Uber accident attorney can help ensure that your claim is taken seriously and that you are compensated fairly for your injuries and damages.

Challenges of Proving Fault in Rideshare Accidents

Proving fault in a rideshare accident can be more challenging than in a typical car accident case. Multiple parties may share responsibility, including the rideshare driver, the rideshare company, and potentially other third parties involved in the accident. Determining which party is at fault requires a thorough investigation and may include gathering evidence from multiple sources.

In many cases, the rideshare company may try to deflect responsibility by claiming that the driver is an independent contractor rather than an employee to avoid liability. This is a usual argument that both Uber and Lyft make when defending rideshare accident cases. Therefore, the chances of fault in these are more accessible to prove, and one needs to seek the services of a lawyer in the case of him.

Additionally, rideshare drivers sometimes do not control the circumstances, which leads to accidents. For instance, they can be forced by more ride quotas or the dangers of driving during the nighttime by Uber or Lyft. Consequently, when a driver’s wrongful behavior is being attributed, the ball is in the driver’s court, figuratively saying, and it may require much effort and time to do this. Under such circumstances, hiring proficient Lyft accident lawyers who collect all vital proof and sufficiently establish the negligence factor is essential.

Conclusion

Rideshare accident claims take longer to settle for several reasons, including the involvement of multiple insurance providers, the complexity of determining fault, and the resistance from rideshare companies to quickly resolve claims. Navigating this complicated process alone can be overwhelming, especially when dealing with injuries or other damages.

If you are ready to take the next step in your rideshare accident claim, schedule a free initial consultation with us today. For expert legal guidance in Pasadena and the surrounding areas, contact McNally Law Office at (626) 584-5744.