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New Jersey’s system for handling car accident claims is complex. New Jersey follows a no-fault system that requires drivers to have insurance that will cover their own injuries in an accident. Drivers have a choice about buying policies that give them the right to sue when their insurance is inadequate to cover their losses.
Driving a rideshare vehicle adds yet another level of complexity. To meet insurance policy requirements for rideshare drivers in Hackensack, drivers may need to increase their personal insurance coverage.
When you or a loved one are involved in a crash with an Uber or Lyft driver, speak with a seasoned rideshare injury attorney at O’Cathain Law Group to discuss your legal rights and options.
Drivers in New Jersey must have at least $25,000 in personal injury liability coverage per person and $50,000 personal injury coverage per accident, plus $25,000 in property damage coverage. In addition, drivers must carry personal injury protection (PIP) to cover their injuries in an accident. Minimum PIP coverage is $15,000. Finally, drivers must purchase uninsured/underinsured motorist coverage, though the state does not set a minimum coverage amount.
Rideshare drivers are independent contractors using their own vehicles. When they are not on duty, their personal insurance policies will cover any losses they or another party suffered in an accident in which they were at fault.
When a rideshare driver causes an accident but their app is not open at the time, an injured person must first turn to their own PIP for coverage. When their PIP does not cover all their losses, they could sue the rideshare driver in some cases, depending on the extent of their injuries and whether they have basic or standard insurance coverage. A knowledgeable Hackensack lawyer at our firm could advise an injured person about whether a lawsuit is possible based on the circumstances of their specific case.
Once a driver logs into the rideshare app, the company’s commercial insurance policy is available. The coverage available depends on whether the driver has accepted a fare.
Uber, Lyft, and other rideshare companies cover drivers if they get into an accident while waiting for a fare. When the rideshare driver is at fault in a crash, the injured person must look first to their PIP. When their expenses exceed the limits of their PIP, they can seek compensation under the driver’s insurance.
Sometimes, the driver’s personal policy does not provide enough coverage to pay the injured person’s losses. Sometimes the driver’s individual policy denies coverage if it learns the driver was using the vehicle for commercial purposes. A driver could purchase additional rideshare coverage which covers them when they are available for a fare but have not yet accepted one.
The rideshare service’s commercial policy will kick in if an injured person cannot get adequate payment from the driver’s coverage. According to New Jersey Statutes § 39:5H-10(b), the rideshare company must provide contingent insurance of at least $50,000 for injuries to one person, $100,000 for injuries to multiple people, and $25,000 for property damage.
Once a driver has accepted a fare, the rideshare company’s commercial insurance is available when the driver is at fault in an accident. It could also pay a passenger’s losses even when the rideshare driver was not at fault if the at-fault driver’s coverage is insufficient.
Once a driver has accepted a fare, rideshare companies in the state must provide at least:
The insurance requirements for rideshare drivers in Hackensack apply regardless of the company or program, such as Lyft Lux or UberX. However, the law does not apply to drivers who deliver food but do not carry passengers.
Some companies provide commercial insurance coverage for their delivery drivers. For example, Uber Eats provides $1 million in coverage for drivers who have logged in and are waiting for a job or on their way to pick up or deliver an order. DoorDash offers limited coverage if the driver is delivering an order. Grubhub drivers have no coverage from the company.
Liability for accidents when a food delivery driver is at fault is fact-dependent. Contact an experienced legal professional at our firm for help exploring your legal options.
Driving for a rideshare service is appealing to many people. However, it comes with some financial risks.
The insurance policy requirements for rideshare drivers in Hackensack protect passengers in the vehicle but do not necessarily protect drivers or others who might suffer injuries. Contact our well-practiced injury attorneys at O’Cathain Law Group if you have questions about liability after an accident involving a rideshare. Get in touch today.