Recovering Compensation After An Accident Under Lyft’s New Policy Agreement

Recovering compensation after an accident under Lyft’s new policy agreement just got more complicated, but getting a lawyer can mean having someone to guide you through your case.

April 1, 2021 brought an update to Lyft’s terms of service agreement. Users agree to the company’s liability waiver when first creating their account and using the app. In the agreement, users effectively waive the right to file a lawsuit for damages exceeding $6,000 in the event of a crash. Instead, disputes now resolve through a private proceeding known as binding arbitration.

While arbitrations tend to be faster and less costly than a trial, the process has received criticism. Concerns for the new charges stem from:

• Consumers being denied their rights
• The process being biased towards and controlled by corporate defendants

How to Recover Compensation Under Lyft’s New Policy Agreement

Whether you were a passenger or another road user injured in a collision caused by a Lyft driver, you could have the legal right to pursue compensation. New York follows a no-fault insurance system, meaning injured parties are generally reimbursed by their own insurer for basic damages, regardless of who is responsible for causing the collision.

As helpful as no-fault coverage is, it is not always enough to cover all of your crash damages if you meet the serious injury threshold, for example.

How the Policy Agreement Changes Could Impact Your Claim

Following the rideshare company’s policy agreement changes, you could file against Lyft at trial for damages below $6,000. However, to resolve cases involving a higher sum, injured parties will need to use their own insurance or one (or a combination) of the following:

• The responsible driver’s liability insurance
• Lyft’s liability insurance via private arbitration

Hiring an attorney serving Long Island can help you determine a suitable course of action for your claim and make the legal process easier to understand. Managing a complex legal claim is challenging at the best of times, let alone while recovering from a traumatic collision.

Our attorneys will take on this legal responsibility and seek compensation on your behalf. Your personal injury lawyer will look for evidence to support your claim.

What Type of Losses will I be Compensated for?

The amount and type of compensation you are eligible for largely depends on who is responsible for causing the crash, the type of insurance coverage that applies, and the extent of your injuries. Possible sources of compensation include:

PIP Benefits

No-fault policies do not pay for your pain and suffering; only basic expenses can be recovered, such as:

• Medical bills and lost wages to a certain point
• Mileage for doctor visits

Pain & suffering is only recoverable via a third-party claim or lawsuit and covers non-economic losses such as:

• Physical pain
• Emotional anguish
• Loss of enjoyment of activities
• Worsening of prior injuries
• Loss of consortium in the event of the loss of a loved one

The Driver’s Liability Insurance

Lyft drivers must have personal auto insurance that meets the minimum state coverage requirements. However, rideshare insurance policies and endorsements are optional.  The state Department of Financial Services (DFS) notes that the New York City Taxi and Limousine Commission (TLC) demands a minimum level of coverage for those drivers. This coverage is $100,000 per person and $300,000 per occurrence.  Outside of the city, there may be more coverage.

Lyft’s Liability Insurance

The DFS also states that rideshare companies in New York are required to carry $1.25 million in vehicle liability coverage for all parties that may be involved in a crash. However, this protection only applies in certain situations and does not apply when the app is off.

It can be difficult to understand who is financially responsible for your collision with so many variables. While we are happy to assist with filing insurance claims, it may be in your best interest to explore all of your legal options before proceeding with your case. This way, you cover all of your bases and ensure you properly account for all your losses.

When Should I Consider Taking Legal Advice?

To pursue compensation for an accident after changes to Lyft’s policy agreement, you will have to wade through a confusing process. Working with an injury attorney can be beneficial, as you might face any of the following scenarios:

• The collision involves multiple parties (the driver and the rideshare company)
• You sustained serious injuries such as a fracture, or permanent scarring
• You are unsure about the value of your case
• You need help gathering evidence to prove your case
• You would prefer an attorney to handle settlement negotiations with insurers or their legal representatives

Insurance companies do not typically begin negotiations with their best offer. With arbitration, you have one shot at getting things right. At the end of this process, the decision is final. So, you must be well prepared and organized.

Our attorneys can help you gather the evidence required to build a strong case and present a compelling argument supporting your situation.