What Happens if You Are Injured in a Ride-Sharing Vehicle Versus a Taxi Service?

When you need a ride, do you call a ride-sharing service or a taxi service? It seems that the rideshare option, such as Lyft or Uber, is more popular in recent years than the tried-and-true taxi option. Many customers have migrated to the rideshare option because it is more cost-effective, although a quick comparison of rates indicates this is not always true. Others choose to stand loyal to the taxi company because of a proven track record. One factor not often considered by passengers is what happens if there is an auto accident? Which option is a safer choice?

The one factor that all passengers have in common is their desire to reach their destination safely. While arriving promptly with a friendly attitude is a bonus, safety is always the number one focus. Rideshare companies do their best to perform lengthy background checks on their drivers; however, if an incident involving performance arises, such as speeding or attitude, these companies ask to stay out of it. On the other hand, with a taxi service, a passenger can quickly make a report with the company. Additionally, many taxis have an on-board monitoring service to carefully track their driver’s performance.

Liability coverage is the state-mandated policy that protects the driver and all passengers should the driver be at fault for the accident. The California minimum requirement for bodily injury liability is $15,000 per person and $30,000 per accident. Unfortunately, many rideshare drivers do not have additional coverage for their “for profit” vehicle. If they do not, the insurance company will deny the claim. Yet, both of the major rideshare companies will cover the damages up to $1,000,000 per accident, regardless of whether their driver is at fault or an uninsured third party is at fault.

In comparison, California requires taxi companies to carry a minimum of bodily injury liability limit at $100,000 per person and minimum total coverage of $1,000,000 per vehicle. However, California does not require any uninsured motorist coverage for taxi companies, which means that if a third party is at fault, and they have no insurance coverage, you may have to pursue other options.

Accidents happen daily, many at the hands of negligent drivers. If you sustained injuries in an automobile accident, contact a San Jose, CA car accident attorney today to hold the responsible parties accountable. The attorneys at Corsiglia McMahon & Allard, L.L.P. will meet with you in a free initial consultation to discuss your options. Should you choose to pursue a claim, you will never owe us anything until we win your case. Call us today at (408) 289-1417 to get started.

• Ride Sharing vs. Traditional Taxis: How do Injury Insurance Claims Compare?
• Uber vs. Lyft vs. Taxi: Cost Analysis Across the United States
• California Car Insurance
• Uber vs Lyft vs Taxi: Which Rideshare Option Should You Choose?
• Regulation of taxi Cabs