Injured in an Uber Accident in Jersey City, New Jersey?
A Uber/Lyft accident in New Jersey can leave you with more questions than answers. If you’re feeling overwhelmed or unsure of what comes next, we’re here to help you feel heard, supported, and informed—every step of the way.
Jersey City, NJ 07302
Driving for rideshare companies like Uber and Lyft is becoming increasingly popular in New Jersey. Demand continues to grow as many people opt to make money using the convenience and control that come from working on their own schedule rather than maintaining a set work week.
Though driving is not necessarily considered a risky job, it can certainly result in serious, unexpected injuries.
Whether driving with a passenger or on your way to pick someone up, it is important that rideshare drivers understand their legal rights to compensation if an accident occurs. This includes rideshare accidents involving uninsured drivers. Below, are some of the things you should know.
Rideshare drivers are considered independent contractors rather than employees of the company they represent. Companies like Uber and Lyft, with this type of business structure, are not required to provide drivers with any employment benefits and are only required to pay for work that has been completed.
No-Fault Accidents
New Jersey is a “no-fault” state, meaning that your own insurance company will help pay a portion of the accident expenses regardless of who caused the accident.
All New Jersey drivers must carry personal injury protection insurance (PIP), but that may not always cover the associated expenses, and unfortunately, not all drivers are compliant with insurance mandates.
All transportation network carriers (TNCs)—such as rideshare drivers in New Jersey—are required to have a Rideshare Endorsement in addition to their PIP insurance. In other words, rideshare drivers must carry $1.5 million in liability coverage and 1.5 million in uninsured or underinsured motorist coverage and must carry proof of insurance at all times.
Uber and Lyft Company Insurance
Rideshare companies carry insurance that applies to all their drivers in the amount of $1 million per accident for injuries and property damage. However, this insurance only applies after the driver’s insurance has been exhausted.
No one wants to experience that awkward moment when you ask the at-fault driver for their insurance information, and they don’t have any. In some cases, they may believe they have adequate insurance when, in fact, their policy has been canceled or is insufficient to help cover the extent of the damage.
Luckily, both Uber and Lyft carry uninsured and underinsured policies for all drivers. Your driving status at the time of the accident will determine whether the company’s insurance applies.
Here is what both rideshare companies offer:
- One and a half million dollars in third-party liability uninsured motorist coverage. This coverage applies to accidents that are caused by another driver who does not have car insurance. This coverage is available to pay the costs of injuries to the rideshare driver and passengers in the vehicle.
- One and a half million dollars in underinsured motorist coverage. This applies to accidents caused by parties other than the rideshare driver when such parties do not have enough protection to cover all the damages. For example, if a motorist runs a red light and crashes into a rideshare vehicle carrying a passenger—but that motorist does not have adequate insurance—the passengers can look to the rideshare company’s insurance for additional compensation.
Though coverage may seem straightforward, getting the compensation you deserve may become more complicated when the other party is at fault, and their policy is the primary source of compensation. The rideshare company’s coverage is secondary, and it can only be accessed if you are actively using the app.
Though rideshare companies provide uninsured and underinsured coverage to protect their drivers and passengers, getting them to pay up may require some effort. Any time you are dealing with serious injuries or third-party insurance, it is very helpful to have an experienced Uber and Lyft accident attorney on your side.
Whether or not you can access the rideshare company’s insurance depends on the engaged status of the rideshare driver at the time of the accident. Here are the different statuses and how the company’s insurance would apply in each case.
- Offline Driver—An offline driver is in their vehicle but not using the rideshare app. In this case, the rideshare company’s insurance would not apply at all.
- Available Driver—A driver is their vehicle with the rideshare app on, and they are waiting for a passenger to accept a ride. If an accident occurs during this time and exceeds the driver’s policy limits, the rideshare company’s insurance could apply after the at-fault party’s coverage is applied.
- En Route—A driver is on their way to pick up a passenger, which means that they are actively working for the company. If an accident occurs during this time, the company insurance could be applied after the at-fault party’s insurance.
- On a Trip—When the driver is actively taking the rideshare passenger to their destination, the full amount of the company’s insurance policy is available after the at-fault party’s coverage is applied.
It is a good idea to take screenshots of your trip on the app when an accident occurs. This can help you prove that you were actively working for the company. When a driver is actively engaged and working for the company, the full amount of the company insurance coverage should be available if the at-fault driver does not have insurance.
Screenshots can also help prove the time and location of the accident, which means you will have less evidence to gather later on. You may also want to consider taking photos of the scene of the accident to help your New Jersey Lyft and Uber accident attorney prove who was responsible in case it becomes a point of contention in the case.
Contact a Lyft and Uber Accident Lawyer
Rideshare accidents can become complicated very quickly, especially for rideshare accidents involving uninsured drivers. Do not let that deter you from receiving the compensation you deserve.
The experienced New Jersey personal injury lawyers at Glugeth & Pierguidi, P.C. understand what it takes to win against big corporations and insurance companies.
We have obtained multi-million dollar results for New Jersey injury victims over the past three decades and are here to help. Contact us to schedule your case consultation.
1. What happens if an uninsured driver hits the Uber or Lyft I am riding in as a passenger?
Under New Jersey law (N.J.S.A. 39:5H-10), transportation network companies like Uber and Lyft are required to carry Uninsured Motorist (UM) coverage. If an uninsured driver causes a crash while you are on an active trip, the rideshare company’s corporate policy provides up to $1.5 million in UM coverage to pay for your bodily injuries and damages.
No. The $1.5 million UM coverage applies only during a “prearranged ride” (from the moment a driver accepts a request through passenger drop-off). If the driver is logged into the app but still waiting for a request, New Jersey requires lower statutory minimum liability limits ($50,000 per person / $100,000 per accident) along with basic state-mandated UM coverage.
3. Can I file an Uninsured Motorist claim if the crash was a hit-and-run?
Yes. In New Jersey, a driver who flees the scene without being identified is legally treated as an uninsured motorist. As long as the incident is promptly reported to the police and the rideshare company, you can access the rideshare policy’s UM coverage.
In New Jersey’s no-fault system, medical bills are typically processed first through Personal Injury Protection (PIP).
- If you own a car (or live with a relative who does): Your personal auto policy’s PIP coverage usually pays your medical bills first.
- If you do not own a vehicle: You may be eligible to receive PIP benefits through the rideshare policy or state funds, depending on your situation.
An uninsured driver has no valid auto insurance policy at all (or committed a hit-and-run). An underinsured driver has legal auto insurance, but their policy limit is too low to cover the full extent of your injuries. New Jersey mandates that rideshare companies carry both Uninsured (UM) and Underinsured Motorist (UIM) coverage up to $1.5 million during active rides to protect passengers in either scenario.
Yes. If your total damages exceed the coverage limits provided by the rideshare policy, or if there is a coverage dispute, you may be able to stack or utilize your own personal auto policy’s Uninsured/Underinsured Motorist (UM/UIM) coverage, depending on your policy terms.
Rideshare drivers must maintain personal auto insurance, but standard personal auto policies generally exclude coverage when the car is used for commercial or rideshare driving (the “business use exclusion”). This is why New Jersey law requires Uber and Lyft to provide primary commercial insurance—including UM protection—whenever the driver is logged into the app.
No. In typical New Jersey car accidents, drivers who select the “verbal threshold” on their personal insurance must prove a permanent injury to sue for pain and suffering. However, rideshare passengers are generally not bound by the verbal threshold defense when recovering compensation from a rideshare company’s policy, making it easier to claim non-economic damages.
If a rideshare driver causes a crash while actively carrying a passenger or en route to pick one up, the rideshare company’s $1.5 million primary liability policy applies to cover your injuries. Under recent New Jersey case law, rideshare policies must also provide required statutory Personal Injury Protection (PIP) for medical expenses if an injured pedestrian has no vehicle or household auto insurance available.
In New Jersey, the legal statute of limitations for personal injury claims—including uninsured motorist actions—is two years from the date of the accident (N.J.S.A. 2A:14-2). However, UM claims involve strict notice requirements within the insurance policy itself, so notifying all involved insurers as soon as possible after the crash is critical.
David Pierguidi and Jared Glugeth understand how hard it may be for you and your family following an accident resulting from someone’s negligent actions. Get the medical treatment you need right away and then call our law firm at any time of day for answers to your questions.