Uber & Lyft Settlement Amounts in California: An In-Depth Guide
Rideshare accidents in California are on the rise just as the popularity of services like Uber and Lyft has grown. Uber alone has seen the number of mobility trips worldwide increase half a billion from 2023 to 2024.
The most recent Uber safety report released in 2020 found that there was an increase in the rate of motor vehicle fatalities since their last analysis in 2017-2018, which aligns with national trends. Uber maintains that only 0.0002% of trips experience serious safety problems, with a total of 101 individual motor vehicle fatalities occurring in a one-year period (2019-2020). What Uber has failed to report are injuries.
The National Bureau of Economic Research (NBER) examined how ridesharing services in cities have impacted the occurrence of fatal traffic accidents. Their findings present a different perspective. They note that (following an earlier trend of a decrease in traffic deaths), since the introduction of ride-hailing services after 2010, traffic fatalities have once again increased among motorists, pedestrians, and pedal cyclists.
While the two major rideshare companies assert excellent safety records, the number of accidents involving their drivers is not zero. Therefore, if you have been involved in an accident involving a rideshare, you need to know how to protect your rights and receive compensation for damages you may be suffering. Let’s walk through the scenarios of car accident settlement basics, legal discussions, and potential damages.
Dangers of Being a Rideshare Passenger
In cases of actual accidents involving pedestrians, pedal cyclists, and other motorists, outcomes are on par with the national averages. Injuries may range from minor bruises to extensive head injuries and disabilities. However, there are additional dangers rideshare passengers could experience.
- Dooring. In the rideshare vernacular, dooring refers to a passenger struck by an oncoming vehicle or bicycle while exiting the car.
- Whiplash. Driver behavior or traffic conditions may result in sudden stops and sharp turns, which may cause you to experience whiplash, concussions, or other soft tissue injuries.
- Malfunctioning safety equipment. If there is an accident, you do not know if the rideshare vehicle’s safety equipment is fully functional. Hazards include failing airbags, defective seat belts, or missing headrests.
Rideshare Accident Settlement Basics
A rideshare accident settlement is a financial agreement between you, the injured party (the plaintiff), and the at-fault party (often the rideshare company or its insurance provider). The goal is to compensate you for damages resulting from a rideshare accident. These settlements cover various costs and losses incurred by the injured party. Examples include medical expenses, lost wages, property damage, pain and suffering, and legal fees.
Rideshare Car Accident Injury Settlement Nuances
Before discussing dollars and cents, it is critical to note that rideshare companies differentiate their insurance coverage limits based on between four different stages.
- The rideshare app is off. Because it indicates that the driver is not currently accepting passengers, the driver’s personal auto insurance and its limits apply.
- The rideshare app is on. The driver is waiting to get a ride request. Now, the rideshare company brings third-party liability to the table. These are minimum coverage amounts.
- The driver is en route to pick up passengers. Rideshare companies maintain first and third-party coverages with higher limits.
- Passengers are in the car. Again, first and third-party coverages are in effect.
Uber and Lyft are tight-lipped about accident settlement amounts. Experts agree that data is limited, but what is available hints at payouts ranging from $25,000 to $50,000 for Uber. Others say that estimated Lyft settlements range from $300,000 to $1 million and more. The vast disparity between these figures shows that tangible data is difficult to find.
Settlements May Also Come from Other Entities
It is critical to understand that you are not limited to seeking damages from just the rideshare company. A case in point is a Jersey City case when the municipality was held liable for an accident involving an Uber and a Parking Authority vehicle. The City paid $350,000 to the rideshare passengers.
How to Calculate Rideshare Car Accident Settlements
Calculating a rideshare car accident settlement depends, in large part, on your ability to document losses and present evidence. Evidence includes police reports, medical records and bills, proof of your income, witness statements, and proof of your income (if you claim lost wages).
Next, sum up the economic damages you currently have and those that you anticipate for the future. Add in future medical care, loss of future earning capacity at your current job, and the cost of repairing or replacing your personal property.
Non-economic damages, such as pain and suffering, may also be included in a settlement calculation. Here, you would use a multiplier that multiplies the sum total of your economic damage by the severity (one to five) of your injury. This highly subjective figure frequently becomes the reason for lengthy negotiations.
Remember to factor in liability. Your settlement figure may go up or down depending on whose fault the accident was or whether there is partial fault on both sides. Because there are so many moving parts in the settlement negotiations, the importance of legal representation in calculations and actual discussions with the defendant cannot be overstated.
Understanding California’s Personal Injury Law
In addition to understanding the insurance intricacies of rideshare companies, California’s personal injury law also governs aspects of your case. It specifies that you have two years from the date of the injury to file your claim. This is called the statute of limitations, and it is critical that you abide by it. Moreover, remember to sue in the county where you were injured or the defendant does business.
The goal of any car accident settlement is to reach a legally binding agreement between you and the defendant before you head to court. It requires excellent negotiation skills because the defendant’s insurance company will likely start the process with low-ball offers. Would you know how to recognize such an offer as unsuitable?
At this stage, having an attorney on your side makes sense. Because the insurance company is working with its attorneys, it is in a strong position. However, having a lawyer take control of the mediation and negotiation for you levels the playing field.
Involving an Attorney in Your Case
Most rideshare accident victims have little experience filing claims or negotiating settlements. Even settlement calculators only sometimes help. An attorney with expertise in rideshare cases can help you determine a fair settlement amount. They will assist with document preparation as well as data collection, and take an active part in the negotiation process.
Many accident victims do not realize that lawyers take on personal injury cases on a contingency basis. You only have to pay the attorney once they achieve a settlement for you. Once you have found an attorney with experience with rideshare accidents, make the most of your initial consultation.
- Come prepared. Bring with you all the documents you have. Examples include the police report, medical bills, records, and any correspondence you received from the insurance company.
- Write down your questions. A free initial consultation goes by remarkably quickly. Know what questions you want to ask ahead of time.
- Visit the attorney’s website. You do not know what you do not know. Visit the attorney’s website before your appointment to read through the information. It may bring up points of discussion you did not even know you should have.
If you bring in an attorney, wait to sign any settlement letter the insurance company sends you.
Fault in California Car Accidents and a Closer Look at Punitive Damages
We have discussed how to calculate damages and briefly mentioned fault. It plays a more significant role in settlement negotiations than you might realize. California operates under a “fault” system for car accidents, which means the person found at fault for causing the accident is responsible for the damages incurred by the other parties involved. This system differs from “no-fault” states, where each party’s insurance typically covers their own losses regardless of who caused the accident.
However, “fault” is not always 100 percent. California follows a comparative negligence rule. Each party involved in an accident can be assigned a percentage of fault, and your compensation is reduced by your degree of fault. The at-fault driver’s insurance company compensates the other party’s damages. Both parties’ insurance companies will investigate the accident to determine fault. If there’s disagreement about fault, it may lead to lengthy negotiations or legal proceedings.
What does this look like in practice? Well, the motorist who rear-ends another car is typically considered at fault. However, suppose the driver in the first car suddenly slammed on the brakes for no reason. In that case, there is a case for comparative negligence. An attorney will guide you through any comparative negligence that may be part of your case.
When Are Punitive Damages Awarded?
Earlier, we talked about compensatory damages and how to calculator economic and non-economic damages. In some cases, punitive damages may be added. You may receive punitive damages if the defendant’s conduct was particularly egregious. However, you must prove your cause. Examples include fraud, disregard for your rights, and intentional misconduct.
A case in point is the 2019 Tesla crash, which involved an autopilot defect. A judge allowed the company to be sued for punitive damages, arguing that it knew about the problem and was negligent.
Confused? Don’t be.
When dealing with a rideshare accident, there are several types of law that come into play. You must understand and navigate each one. Follow the timelines when making your claim, calculate an acceptable settlement, and negotiate with the defendant’s insurer.
If you are not a good candidate for handling this process all on your own, enlist the assistance of a rideshare accident attorney. This professional understands the governing laws, will follow the filing guidelines, and already has experience negotiating with companies that want to save money on payouts. Even if you are unsure that you want to hire a lawyer, call and go in for a consultation. You may very well change your mind. Make the call today!
Sources
NBER. https://www.nber.org/system/files/working_papers/w26783/w26783.pdf
Advance Local Media LLC. https://www.nj.com/hudson/2024/04/jersey-city-to-pay-couple-in-uber-that-was-struck-by-city-vehicle-350k-in-lawsuit-settlement.html
Nolo. https://www.nolo.com/legal-encyclopedia/personal-injury-cases-small-claims-court-how-calculate-your-damages.html
Judicial Branch of California. https://selfhelp.courts.ca.gov/civil-lawsuit/personal-injury
California Department of Insurance. https://www.insurance.ca.gov/01-consumers/105-type/95-guides/01-auto/autoterms.cfm#c
California Civil Code 3294. https://leginfo.legislature.ca.gov
Bloomberg. https://www.bloomberg.com/news/articles/2023-11-22/tesla-driver-s-family-can-seek-punitive-damages-over-fatal-crash
Vaziri. https://www.vazirilaw.com/average-uber-accident-settlement
Wakeford. https://wakefordlaw.com/articles/lyft-accident-settlement/