Taxi Accidents vs. Rideshare Accidents: How Liability and Insurance Differ
In Las Vegas, both taxis and rideshare services like Uber and Lyft are popular modes of transportation. While both provide similar services, the legal framework surrounding accidents involving these two types of vehicles is quite different. Mainor Ellis is here to help you understand how liability and insurance work in taxi accidents versus rideshare accidents and ensure you receive the compensation you deserve.
Understanding Taxi Accidents
Taxis in Las Vegas are typically operated by professional drivers employed by a taxi company. These drivers are required by law to maintain a commercial driver’s license and operate under strict safety regulations. Taxi companies must also carry commercial liability insurance that covers both the driver and passengers in the event of an accident.
When you’re involved in a taxi accident, there are usually two main parties who may be liable for your injuries:
- The Taxi Driver: If the taxi driver was negligent—whether by speeding, running a red light, or failing to obey other traffic laws—they could be held responsible for the accident. The taxi company’s insurance will typically cover the damages if the driver was acting within the scope of their employment.
- The Taxi Company: In some cases, the taxi company itself may be held liable for the accident, particularly if it failed to properly maintain the vehicle or ensure that the driver was adequately trained. Taxi companies are required to carry commercial vehicle insurance, which often includes higher liability limits than personal auto insurance policies.
Rideshare Accidents
Rideshare services like Uber and Lyft, while similar to taxis, operate under a different business model. Rideshare companies insist that their drivers are independent contractors, not employees. As a result, the insurance coverage provided by the rideshare company depends on the driver’s status at the time of the accident.
Rideshare companies like Uber and Lyft offer insurance coverage for accidents that occur while the driver is “on the clock” (i.e., when they have the app turned on and are either en route to pick up a passenger or have a passenger in the car). However, this coverage is not as straightforward as with traditional taxis.
Rideshare insurance coverage typically comes in three phases:
- Driver Offline or Not Using the App: If the driver is not using the app at the time of the accident, their personal auto insurance policy is the primary coverage. If the driver is at fault and doesn’t have enough insurance to cover the damages, the victim may be left without sufficient compensation.
- Driver Available for Rideshare: When a driver is logged into the rideshare app and awaiting a ride request, the rideshare company’s insurance coverage kicks in. Uber and Lyft typically provide liability coverage for accidents in this phase, but the limits may be lower than when the driver has a passenger in the car.
- Driver Transporting a Passenger: If the driver is actively transporting a passenger, Uber and Lyft provide more extensive coverage, including liability for injuries caused to third parties, passengers, and pedestrians. Rideshare companies are required to carry higher liability limits when a passenger is in the vehicle.
Liability Differences Between Taxis and Rideshare Services
The key difference between taxis and rideshare services when it comes to liability is the employment relationship. Taxi drivers are employees of the company, and the company is generally liable for accidents that occur during the course of the driver’s duties. In contrast, rideshare drivers are arguably independent contractors, meaning that liability often depends on whether the driver was actively using the app and transporting a passenger.
Insurance Coverage Differences
In terms of insurance coverage, taxis are required by law to carry commercial insurance, which covers both the driver and the passengers. Rideshare companies, however, provide insurance only when the driver is actively using the app or transporting a passenger. This can leave gaps in coverage if the driver is not on the clock.
Seek Legal Help Today
Whether you’re involved in an accident with a taxi or a rideshare vehicle in Las Vegas, the process for determining liability and seeking compensation can be complex. Taxis generally have more straightforward insurance coverage, while rideshare accidents can involve multiple layers of insurance, depending on the driver’s status. If you’ve been injured in an accident with either a taxi or a rideshare vehicle, it’s crucial to consult with our experienced Las Vegas Taxi Accident Attorneys at Mainor Ellis to help you navigate the claims process and ensure you receive the compensation you deserve.
Source:
axi.nv.gov/rider-info/
