Navigating Insurance Claims When Multiple Parties Are Involved in an Accident
If there is one type of claim that can drive the complex injury claims process, it’s rideshare passenger injury claims.
Multiple parties are always involved. Drivers, passengers, rideshare companies, and third-party motorists. They each have insurance policies with different coverage levels.
Which brings me to the problem:
Insurance companies HATE to pay claims, and they work together in every way possible to make sure you don’t get what you’re entitled to.
The good news?
You can fight back and increase your chances of receiving maximum compensation.
When you understand exactly how multiple-party liability insurance claims work.
What You’ll Learn:
- Why Multi-Party Rideshare Claims Are So Complicated
- How Insurance Coverage Works in Rideshare Accidents
- The Step-by-Step Process for Filing Your Claim
- Common Mistakes That Hurt Your Settlement
Why Multi-Party Rideshare Claims Are So Complicated
In a typical car accident, there is usually one at-fault driver and one insurance company to deal with.
In a rideshare accident, there could be two or three at-fault parties. Each one with different insurance policies and limits.
A lot rides on the details of the case:
Simple three-point accidents with a known at-fault party are relatively straightforward. Insurance companies will fight each other to a degree but mostly just pay their share of the damages.
Multi-party collisions with shared liability or even just a strong argument of partial fault are a different story. Insurance adjusters will circle their wagons and argue over percentages of fault until their eyeballs bleed.
Driver error and negligence still account for the lion’s share of motor vehicle accidents, but rideshare collisions are becoming more common.
Drivers who log in to rideshare apps increase the risk of getting into an accident by 73%, according to one set of Insurify data. With more rideshare drivers on the road than ever before, the potential for multi-party claims only increases.
If you’ve been involved in rideshare accidents in San Diego, you know firsthand how challenging this can be. In a normal car accident claim, insurance adjusters will argue back and forth for as long as they can. Add in one more policy holder into the mix, and you have a situation that most insurance companies LOVE.
How Insurance Coverage Works in Rideshare Accidents
Coverage is an important concept to understand as you work through your claim.
Uber and Lyft both provide up to $1 million in liability coverage when a passenger is in the vehicle.
But this is not the full story.
Insurance coverage levels and liability shift based on where the driver is in the app. There are three periods that determine what coverage applies.
- Period 1
- Period 2
- Period 3
During Period 1, when the driver has the app on but hasn’t accepted a ride, the rideshare company only provides limited liability coverage. We’re talking $50,000 per person for bodily injury and $100,000 per accident.
Period 2 begins when the driver accepts a ride and is en route to pick up the passenger. Coverage increases substantially during this period.
Full liability coverage of up to $1 million is available during Period 3 when the passenger is in the vehicle.
Determining the period of coverage can be a crucial component of the claim.
The challenge with rideshare passenger injury claims is that you may be required to file multiple claims with different insurance companies based on:
- The exact time and stage of the accident.
- The party at fault.
- Which coverage limits apply in the specific stage of the rideshare process.
If the at-fault driver’s policy limits do not cover the full extent of your damages, you may need to access other coverage or file against multiple parties.
The Step-by-Step Process for Filing Your Claim
Correct filing is the key to not getting stuck later down the line.
Step 1: Document Everything, Right Away
Get the other drivers’ contact and insurance information. Take photos of all the vehicle damage. Hold on to the rideshare trip details from the app.
This will all come in handy when insurance companies start pointing fingers at each other.
Step 2: Report the Accident through the App
Uber and Lyft both have accident-reporting features in their apps. Use it. It creates an official record with the rideshare company and starts their insurance process.
Step 3: Seek Medical Attention ASAP
Even if you feel okay, get checked out by a medical professional. Some injuries don’t manifest symptoms immediately. Plus, medical documentation goes a long way with insurance companies.
Step 4: File Claims with All Insurance Companies Involved
The complicated part.
You’ll need to file claims with:
- The rideshare company’s insurance.
- The at-fault driver’s personal policy.
- Your own insurance company if you have underinsured motorist coverage.
It’s important not to assume that one claim will cover all your damages. Multi-party accidents are usually proportionate, with each insurer paying their share.
Step 5: Be Patient, But Follow Up
Multi-party claims usually take longer to resolve. Insurance companies are extra thorough in their investigations when multiple policies are at stake. You can expect simple cases to settle in 30 to 90 days. Complex multi-party accidents may take a year or more.
Common Mistakes That Hurt Your Settlement
Avoiding mistakes is also important.
Accept the First Offer
Insurance companies always lowball their initial offers, but they’re especially likely to do this when multiple insurers are involved, and everyone is trying to pay as little as possible.
Miss Deadlines
There are deadlines for filing injury claims. Every state has a statute of limitations that gives you two years to file. But waiting too long can damage your claim, even if you’re well within the deadline.
Give a Recorded Statement Without Preparation
Insurance adjusters will ask you to give a recorded statement about the accident. Be careful what you say. They use it as ammunition to reduce your claim. Stick to the facts. Don’t speculate on fault.
Don’t Understand Comparative Fault
Comparative negligence or comparative fault rules are common in many states. This means you can be found partially at fault for the accident and have your settlement reduced by the same percentage.
Failing to Track All Your Damages
Keep good records of all your injury-related expenses. Medical bills, lost wages, transportation costs, and even pain and suffering all play a role in your settlement value.
Wrapping It All Up
The truth is that navigating insurance claims in multi-party accidents is hard work.
Multiple policies, shared liability issues, and multiple insurance companies all work to make it an extremely complicated process.
But there are some key takeaways:
Document everything from the moment of the accident. Understand how the insurance coverage works, period by period, in rideshare accidents. File claims with all the insurance companies involved, not just one or two. And never accept a lowball offer.
It takes time and patience. Simple three-party rideshare passenger injury claims can take 3 to 12 months to settle. Complex multi-party accidents involving shared liability can drag out for over a year.
If your injuries are severe or liability is in dispute, talk to a qualified attorney who knows how to handle the unique challenges of rideshare accident claims.
