A ridesharing service is a service that arranges one-time shared rides through the use of GPS navigation devices, smartphones, and social networks.

Similar to carpooling, ridesharing services like Uber utilize empty seats in passenger vehicles to provide transportation to those without access to a vehicle or who may not be in a condition to drive. Unlike carpooling, these services are often set up on short notice and are done for the sole purpose of profit.

Among the leading ridesharing services are:

• Uber
• Lyft
• Sidecar
• Wingz
• Fasten
• Ride Austin

Insurance policies will vary by company; however, all rideshare drivers are required to have their own insurance in order to be eligible to work for a ridesharing company. In addition to the driver’s insurance, Lyft carries up to $1 million of liability company insurance. However, this coverage is only in effect when at certain times:

Lyft App is OFF: Only the driver’s personal insurance is in effect.
App is ON and Driver is “Available”: In addition to driver’s insurance, Lyft’s contingent liability coverage can now be accessed. This includes up to $100,000 for injuries.
Driver is on Lyft Trip: Company’s full commercial insurance coverage is in effect. This includes $1 million in third-party liability and $1 million in uninsured and underinsured coverage.

Ridesharing companies have worked pretty hard to distance themselves from their drivers, at least in terms of legal responsibility. Lyft, for example, has fought against litigation that would give its drivers’ employment status under the law. Instead, Lyft has pushed to keep its drivers listed as independent contractors in order to limit the company’s liability for any negligence displayed by their drivers.

When confronted with litigation, rideshare providers like Lyft will attempt to claim they only facilitate fares and are not responsible for their driver’s actions. It is then up to the plaintiff’s attorneys to prove the company’s liability.

Typically, all a person needs to become a Lyft driver is an active driver’s license and proof of insurance.

Lyft is not as heavily regulated as traditional taxi services, and Lyft drivers are not expected to complete a certified licensing program. After meeting a few company-based requirements, drivers are free to transport clients without any additional training, on-boarding, or experience

Initially, this resulted in many of these services being banned as unlicensed taxi companies. However, bans have since been lifted, leaving the companies free to operate.

Typically, a passenger who gets hurt in a car crash has an easier case than a driver or any other type of personal injury plaintiff due to the fact that the passenger generally does not share any liability (though there are exceptions). In a two-car accident, for example, fault will normally lie with one or both of the drivers.

However, the passenger must still prove that:

• The crash was the defendant’s fault
• The plaintiff suffered damages
• The defendant’s actions resulted in damages
• The extent of the damages sustained

With this in mind, a passenger injury claim will proceed just like any other car accident claim. Just as in other auto accident cases, the passenger would want to gather the insurance information for any drivers involved in the crash and file claims with the insurance companies of any of the drivers he or she believes is liable for the crash.

Of course, if the accident were a single-vehicle crash, the passenger would only file with their own driver’s insurance company.