Over the last few years, ridesharing apps like Uber and Lyft have become more and more popular, especially since 2018 when Governor Kay Ivey signed a ridesharing bill into law, allowing these companies to operate all across the state of Alabama, regardless of location or proximity.

While these companies have provided safety and convenience for multiple years to people trying to get around town, there are still some questions as to who is liable if an accident occurs and whose insurance policy will be applied.

Though drivers are required to carry their own insurance apart from the company’s policy, who is liable and whose insurance is used depends on the actions of the driver at the time of the accident. Specifically, according to Alabama law, these differences are distinguished by how involved the driver was with the rideshare program:

• If the driver is not logged onto the rideshare network, their personal insurance applies 
• If the driver is logged onto the network, but not engaged in a prearranged ride, the rideshare company provides:
• At least $50,000 for death and bodily injury per person
• At least $100,000 for death and bodily injury per incident 
• At least $25,000 for property damage 
• If the driver is engaged in transporting a rider, the company provides at least $1,000,000 for death, bodily injury, and property damage.

While these policies exist, one thing for riders to remember is that these amounts are not necessarily what is given in a settlement, since companies often try to deny responsibility for the driver if possible.

If you are injured in an accident involving a rideshare company, though you may be entitled to significant compensation, it is best to work with an attorney due to the different caveats in these types of cases. The attorneys at Snable Stevenson & Silva would be happy to discuss your options with you during a free consultation and case evaluation.