Uber Accident vs. Taxi Accident: Legal Differences That Matter
In Michigan, all drivers must carry auto insurance, but the coverage structure for Uber drivers differs significantly from that of taxi drivers. Traditional taxi services typically operate through licensed companies that own their vehicles and employ drivers directly.
In contrast, Uber drivers are classified as independent contractors, which means Uber often attempts to distance itself from liability when accidents occur. Under Michigan law, Uber’s liability coverage varies based on whether the driver is logged into the app, waiting for a ride request, or actively transporting a passenger.
At Schefman & Associates, PC, our experienced personal injury attorneys have seen how transportation in Michigan, and throughout Oakland, Wayne, Macomb, and Washtenaw Countys has evolved dramatically over the past decade.
The rise of rideshare companies like Uber or Lyft has changed the way people move around cities, but it has also created new challenges in personal injury law. Keep reading to learn all about these changes and modern challenges.
Insurance Coverage in Rideshare Accidents
When we represent client passengers injured in an Uber accident, one of our first priorities is determining which insurance policy provides the applicable no-fault coverage. Michigan’s no-fault insurance system already presents challenges for personal injury victims, but rideshare accidents introduce additional layers. Generally, the passenger must seek coverage from his household/personal auto insurance. If there is no household/personal no-fault insurance, a claim may be made through the Michigan Assigned Claim Facility for Michigan residents injured in Michigan.
If an Uber or Lyft driver's negligence has caused an injury. Those companies have different requirements to lock in coverage for bodily injury. There may be higher liability coverage when a passenger is in the vehicle or when a driver is on their way to pick up a passenger. However, if the driver is merely waiting for a ride request, the coverage drops significantly. This can leave victims with limited compensation unless their own no-fault coverage provides uninsured or underinsured coverage..
Taxi companies, on the other hand, must maintain consistent commercial liability policies that apply any time their driver is on duty. This creates a more straightforward path for bodily injury claims, as victims can typically deal directly with the taxi company’s insurer rather than juggling multiple policies and coverage conditions.
The Process of Proving Negligence
In both Uber and taxi accident cases where that driver was the at-fault driver, proving negligence remains the foundation of any personal injury claim. We must prove that the driver failed to exercise reasonable care under the circumstances then existing, and that this negligence directly caused the victim’s injuries.
We may need to establish whether the driver was distracted by using the app, rushing to complete more rides, or fatigued from excessive working hours, or just making calls or texting.
In taxi accidents, negligence might involve vehicle maintenance issues or violations of company driving policies. Both types of drivers owe their passengers and other motorists a duty of care; however, the definition and proof of this duty in court may vary.
Electronic records, witness statements, and expert testimony help us build a comprehensive picture of what happened. In rideshare cases, digital evidence from the Uber app—such as GPS data, timestamps, and communication logs—can be critical in showing how the crash occurred.
Liability Challenges Unique to Uber Accidents
Because Uber drivers are independent contractors, holding the company directly responsible for a crash can be difficult, but it remains an important consideration.
Uber often claims that it’s merely a technology platform, not an employer, which shields it from direct liability under many circumstances. This distinction means that victims often rely on the insurance coverage of the vehicle driver rather than suing Uber directly. Many drivers do not obtain specific driver-for-hire coverage and may be excluded from liability coverage if a bodily injury claim arises out of a drive-for-hire event, or the limits of coverage they purchase is insufficient to cover your injuries. At Schefman & Associates, PC, we know when a valid claim against the company exists.
Taxi companies, on the other hand, can typically be sued directly for the negligence of their drivers, since those drivers are employees. This can make taxi-related personal injury cases somewhat more straightforward, as the employer is legally responsible for its driver’s actions performed within the scope of employment.
Common Factors in Uber and Taxi Accidents
While the legal structures differ, Uber and taxi accidents often share similar causes. In both situations, drivers spend long hours on the road and may experience fatigue, distraction, or pressure to reach destinations quickly. Common causes of accidents include:
Distracted driving (texting, checking the app, or talking with passengers)
Fatigue from long work hours or multiple jobs
Speeding or reckless driving to complete more rides
Poor vehicle maintenance, leading to mechanical failures
Driving under the influence of alcohol or drugs
Each of these factors can lead to serious injuries and substantial personal injury claims. At Schefman & Associates, PC, we work to uncover all contributing elements to strengthen our clients’ cases and maximize recovery.
Legal Rights of Passengers and Third Parties
When an Uber or taxi crash occurs, multiple parties may be entitled to pursue personal injury compensation. This includes passengers, pedestrians, cyclists, and occupants of other vehicles.
In Uber cases, passengers are typically covered under the company’s $1 million policy when a ride is active. However, third parties injured by an Uber driver must often determine whether the driver was logged into the app to identify the correct coverage source.
Taxi passengers generally have a clearer path to compensation, as the company’s commercial policy applies during all operating hours. Still, disputes over liability can arise if the taxi driver claims another vehicle caused the collision or if multiple parties were involved.
Our approach focuses on identifying every potential source of compensation, from insurance carriers to third-party claims, to protect our clients’ financial recovery.
How Michigan’s No-Fault System Affects These Cases
Michigan’s no-fault insurance initially covers medical expenses and certain economic losses, regardless of fault. However, when injuries are severe or exceed policy limits, victims can file a lawsuit against the at-fault party.
This threshold is often met in Uber and taxi accidents because the injuries sustained in these crashes can be significant. Understanding how the no-fault system interacts with Uber’s layered insurance structure is critical. We often find that rideshare victims face more complications when filing claims, particularly if multiple insurers dispute who is responsible for paying benefits.
Building a Strong Legal Strategy
When we take on an Uber or taxi accident case, our objective is to construct a strong, evidence-based strategy. This involves gathering accident reports, securing video or digital evidence, and identifying witnesses.
In rideshare cases, data from the Uber app can be a crucial component in showing what the driver was doing in the moments leading up to the crash.
We also look into the driver’s background, previous complaints, and driving history to determine whether negligence was part of a broader pattern. These details allow us to present a clear and persuasive argument for compensation under Michigan personal injury law.
Justice & Maximum Compensation
The damages available in Uber and taxi personal injury cases are often substantial. Victims may be entitled to recover benefits in no-fault claims and compensation in bodily injury claims for:
Medical expenses, including ongoing care
Lost wages and diminished earning capacity
Pain and suffering
Emotional distress
Loss of enjoyment of life
At Schefman & Associates, PC, we work to secure compensation that reflects not just our client’s immediate losses but also their long-term recovery needs. In serious accidents, this can include future medical costs and the impact of permanent disabilities.
Why Legal Representation Matters
Dealing with insurance companies—especially those representing large rideshare corporations—can be intimidating. Insurers often attempt to minimize payouts or deny valid claims by exploiting technicalities.
That is why it’s critical for victims to work with a law firm that understands both personal injury law and the evolving legal issues surrounding rideshare services.
Our firm has spent years handling personal injury cases in Michigan, and we’ve seen how rideshare companies structure their insurance programs to limit access to coverage at the corporate level. We know how to challenge these tactics and advocate aggressively for our clients’ rights.
Reach Out Today for Answers
At Schefman & Associates, PC, we believe that every injured person deserves clear answers and strong representation when dealing with insurance companies and corporate defendants.
In every case, our goal remains the same: to fight for maximum compensation for those harmed through no fault of their own—and to make sure personal injury victims receive the support and advocacy they need. We’re proud to serve clients in Michigan, including those in Oakland, Wayne, Macomb, and Washtenaw Counties. Call or text us today.
