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Rideshares may be taking the country by storm, but it could come with a hidden cost. Accidents are on the rise in places where you have to share the road with them, but it can be hard to know who’s responsible for your recovery after an accident.

Cities see an increase in serious accidents when rideshare companies come to town. While Lyft and Uber refute the claims on increased dangers, they still prepare for the worst. Lyft alone has nearly $864 billion set aside for insurance costs. While they may have programs in place to cover accident expenses, there are specific circumstances where they’ll actually pay after you get in a wreck.

Pointing blame

The drivers for companies like Uber and Lyft are usually independent contractors. This means that seeking compensation directly from the companies could be difficult, and at times it is the driver who will be on the hook in your claim.

Accident claim

Both programs boast a $1 million insurance plan in addition to a driver’s policy, but which one is in action depends on the conditions:

  • Off: If the rideshare app isn’t turned on, or the driver wasn’t on duty at the time of the crash, then it’s likely that the company won’t cover the accident. In this case, the driver’s policy will likely apply.
  • On: The company’s liability insurance might kick in once the app is on, but the driver hasn’t accepted the ride yet. You aren’t looking at the banner $1 million policy, but instead a lesser coverage for up to $100,000 per accident.
  • Driving: Your best chance for the $1 million coverage is while they are actively traveling to their destination with a fare. Between the time they begin the ride and when their job is complete is when the top-tier coverage could come into play.

Knowing when and where to point your finger can be difficult when it comes to complicated claims involving contract workers. Keeping track of all the details is always important after an accident, but there are a few extra points you’ll want to follow when handling rideshares.