New Jersey Uber Accidents Involving an Uninsured or Underinsured Motorist

When someone is injured in a New Jersey Uber accident, they can pursue a claim for compensation through a personal injury lawsuit. Almost all car accidents involve an insurance company, and Uber accidents are no exception. For those who have been injured in a New Jersey Uber accident that was the fault of another driver, it is important they understand how the state’s insurance laws apply and what options they have to pursue a claim for compensation.

While some Uber accidents are caused by an Uber driver’s negligence, many are the result of another motorist’s negligence. These accidents are viewed differently than those in which the Uber driver is at fault.

New Jersey law requires that Uber maintains a certain amount of insurance on behalf of its drivers. This way, in the event of an Uber accident, the injured person is not left without any source of compensation. Under state law, Uber must obtain coverage in the amount of $1.5 million for death, bodily injury or property damage for accidents occurring during an official Uber ride. That is, from the moment the Uber app matches a driver up with a passenger up until the driver drops off the passenger. During a ride, Uber must also carry $1.5 million in uninsured/underinsured (UM/UIM) motorist protection. Understanding how each type of insurance works is crucial for both Uber drivers and Uber passengers.

It is also important to review any applicable household insurance policies for additional coverages.

Uninsured/Underinsured Coverage for Uber Passengers

It is important for Uber riders to understand how the company’s insurance policy works and when each type of coverage kicks in:

• $1.5 million in third-party liability UM coverage: This coverage applies to accidents that are caused as a result of another driver’s negligence who does not have car insurance. It is available to cover the injuries of the Uber driver and passengers in the vehicle.
• $1.5 million in UIM coverage: This coverage applies to accidents that are caused by parties other than the Uber driver and that vehicle does not have enough liability coverage to cover all the damages. For example, if another motorist runs a red light and crashes into an Uber that is carrying a passenger and does not have adequate coverage, the passengers can look to the Uber coverage for additional compensation.

Thus, regardless of whether the Uber driver is at fault, or if a third-party is at fault, Uber’s insurance policy will provide up to a total of $1.5 million in coverage, either through UM/UIM protection coverage or through third-party liability coverage.

While this seems fairly straightforward, issues can – and do – arise when an Uber accident claimant files a UIM claim against Uber’s insurance company. When the Uber driver is at fault for causing an accident, the primary source of insurance is Uber’s third-party liability insurance. However, complications can arise when another party is at fault. In these situations, the at-fault party’s insurance policy is the primary source of coverage and Uber’s UIM coverage is second in position. Because New Jersey only requires motorists to maintain liability coverage in the amount of $15,000 per person/$30,000 per accident, often, anyone who is seriously injured in an accident will exhaust that coverage. Once the at-fault motorist’s coverage is exhausted, Uber’s insurance policy will provide UIM benefits. You will also need to review your own household insurance policies as well.

Uber Drivers Involved in an Accident With an Uninsured Motorist

For Uber drivers, determining the extent of insurance coverage that applies is crucial, because an accident could occur at any time. When a driver is not using the Uber app, or they are using their car for personal reasons, the company’s insurance policy will not be involved if there is an accident, regardless of who was at fault. In these cases, an Uber driver will file a claim with the at-fault driver’s insurance company or with their own insurance company. On the other hand, when an Uber driver is transporting a passenger, Uber provides the following coverage:

• $1,500,000 in third-party liability
• $1,500,000 in UM/UIM motorist protection

Thus, if an Uber driver is transporting a passenger and is involved in an accident that was caused by another party, they will be covered under the at-fault party’s insurance policy. If coverage is denied or exhausted, then Uber’s UIM policy will kick in. This also applies to New Jersey hit-and-run accidents.

However, if the accident occurs while the Uber driver is waiting to be paired up with a passenger, Uber only provides coverage up to $50,000 per person or a total of $100,00 per accident. Because this is contingent coverage, it is second in line after the driver’s own insurance policy, and will be available only if the driver’s insurance company either denies the claim or in situations where the driver does not have auto insurance.

Dealing With an Insurance Company After an Uber Accident Involving an Uninsured or Underinsured Driver

While Uber carries UIM coverage, the ultimate decision on whether to pay out on a claim rests with the insurance company. Insurance companies are for-profit corporations that are primarily concerned with the company’s bottom line. The well-being of those injured in Uber accidents and making sure that they are fairly compensated are not among an insurance company’s priorities. In fact, insurance companies will look for reasons to deny even seemingly valid claims, often by citing some legal loophole or technicality. Thus, those who have been injured in an Uber accident should contact an experienced New Jersey personal injury attorney for immediate assistance to evaluate any all potential claims including UM and UIM benefits including your own household insurance coverages.

Contact an Experienced New Jersey Personal Injury Law Firm for Immediate Assistance

If you have recently been injured in a New Jersey rideshare accident, you may be entitled to monetary compensation. The dedicated New Jersey personal injury attorneys at the Todd J. Leonard Law Firm are here to help you discuss your options. Our attorneys provide sound advice and compassionate, zealous advocacy to those seriously injured in Uber accidents across New Jersey. 

Our New Jersey injury attorneys have over 35 years of experience aggressively representing our clients injured in accidents and their families in all types of claims, including New Jersey rideshare accident cases. Throughout this period, we have successfully served thousands of clients, recovering over $100 million on their behalf. The firm’s founder, attorney Todd Leonard, has devoted his entire legal career to helping his clients recover the compensation they need and deserve from the parties responsible for their injuries. To learn more about how we can help you pursue a claim for compensation, give us a call today at (973) 920-7900 to request a free and confidential consultation. There is no risk in calling, because we never charge a fee unless we can help you recover compensation for your injuries. We have offices conveniently located in Denville and Morristown.