Rideshare services like Uber and Lyft have transformed transportation in Wisconsin, offering convenient and affordable alternatives to traditional taxis, public transportation, and driving yourself. However, as these services have grown in popularity, so too have accidents involving rideshare vehicles. When a crash occurs involving an Uber or Lyft, determining liability can be surprisingly complex—much more so than in conventional car accidents.
If you’ve been injured in a rideshare accident in Wisconsin, understanding who’s responsible and which insurance policies apply is crucial to securing the compensation you deserve. This guide will help you navigate the complicated landscape of rideshare accident liability and insurance coverage.
The Complex Insurance Coverage in Rideshare Accidents
One of the most confusing aspects of rideshare accidents is the layered insurance coverage that applies depending on the driver’s status at the time of the crash. Both Uber and Lyft structure their insurance coverage based on whether the driver is offline, available for rides, en route to pick up a passenger, or actively transporting a passenger.
Driver’s Personal Insurance
All drivers in Wisconsin are required to carry personal auto insurance with minimum liability coverage as mandated by state law. However, most personal auto insurance policies contain a “business use exclusion” that denies coverage when the vehicle is being used for commercial purposes—including rideshare driving. This creates a potential coverage gap that rideshare companies address through their own insurance policies.
Rideshare Company’s Insurance
Both Uber and Lyft provide insurance coverage for their drivers, but the coverage limits vary depending on the driver’s status:
Period 0: App Off
When the rideshare app is off and the driver is not available for rides, only the driver’s personal auto insurance applies. The rideshare company provides no coverage during this period.
Period 1: App On, Waiting for Ride Request
When the driver is logged into the app and waiting for a ride request, rideshare companies provide limited liability coverage. This coverage is contingent, meaning it only applies if the driver’s personal insurance denies the claim or provides insufficient coverage.
Period 2: En Route to Pick Up a Passenger
Once a driver accepts a ride request and is en route to pick up the passenger, coverage increases significantly to include substantial third-party liability coverage, plus uninsured/underinsured motorist coverage and contingent comprehensive and collision coverage.
Period 3: Passenger in Vehicle
During an active trip with a passenger in the vehicle, the same high-limit coverage from Period 2 applies.
Determining Liability in Different Rideshare Accident Scenarios
Liability in rideshare accidents depends on the specific circumstances of the crash and the driver’s status at the time of the accident.
When You’re a Passenger in an Uber/Lyft
As a passenger in a rideshare vehicle, you’re covered by the rideshare company’s liability policy regardless of who caused the accident:
•If your rideshare driver caused the accident: The rideshare company’s liability policy should cover your injuries and damages.
•If another driver caused the accident: The at-fault driver’s insurance would be primary, but if they’re uninsured or underinsured, the rideshare company’s uninsured/underinsured motorist coverage would apply.
As a passenger, you benefit from Wisconsin’s “innocent passenger” doctrine, which allows you to recover damages regardless of which driver was at fault.
When You’re Hit by an Uber/Lyft Driver
If you’re a pedestrian, cyclist, or occupant of another vehicle hit by a rideshare driver, liability depends on the driver’s status:
•App off (Period 0): Only the driver’s personal insurance applies.
•App on, waiting for request (Period 1): The rideshare company’s lower-limit contingent liability coverage applies.
•En route to pickup or with passenger (Periods 2-3): The rideshare company’s higher liability policy applies.
When You’re a Rideshare Driver Hit by Someone Else
If you’re working as a rideshare driver and another vehicle hits you, your coverage depends on your status in the app at the time of the accident.
Wisconsin-Specific Laws Affecting Rideshare Accident Claims
Wisconsin has enacted specific legislation governing transportation network companies (TNCs) like Uber and Lyft, which affects how accident claims are handled:
Wisconsin Statute § 440.48
This statute establishes insurance requirements for rideshare companies operating in Wisconsin, including the minimum coverage amounts required during different operational periods.
Comparative Negligence Law
Wisconsin follows a modified comparative negligence system with a 51% bar. This means you can recover damages as long as you’re not more than 50% responsible for the accident, but your compensation will be reduced by your percentage of fault.
Steps to Take Immediately After a Rideshare Accident
If you’re involved in a rideshare accident in Wisconsin, taking these steps can help protect your health and legal rights:
1.Ensure safety and call 911 to report the accident and request medical assistance.
2.Document the scene with photos and collect contact information from all parties.
3.Take screenshots of your rideshare app showing trip information.
4.Seek medical attention even if injuries seem minor.
5.Report the accident through the rideshare app.
6.Consult with an attorney before giving statements to insurance companies.
Get in Touch with Our Rideshare Accident Attorneys Today!
Rideshare accidents in Wisconsin involve unique challenges due to complex insurance coverage and liability issues. Understanding who’s liable when an Uber or Lyft crashes—and which insurance policies apply—is crucial to securing fair compensation for your injuries and losses.
At Fitzpatrick, Skemp & Butler, LLC, our attorneys stay at the forefront of this evolving area of personal injury law. We have the experience and resources to navigate the complexities of rideshare accident claims. Contact us today for a free consultation to discuss your case.