All you wanted was to board the vehicle at point A and get off at point B. However, an unexpected accident permanently altered the course of your life. Now, you are left wondering who will compensate for your damages. You might think that because you subscribed to a rideshare company’s service, they could be held responsible. But it is not that simple.
The hidden arbitration clause
Whenever you use a rideshare app, you are asked to read the terms and conditions. Most people accept them without reading because of their unappealing and lengthy structure. If you had agreed to this clause, taking the matter to court could be a difficult task. Instead, you typically have to resolve disputes through a private arbitration with the rideshare company. However, the enforceability of the arbitration clause can be challenged, depending on the circumstances. Furthermore, this clause usually does not stop you from pursuing compensation through the available commercial insurance policies.
The insurance coverage
Since you are the passenger, the car is not in your control. That means, almost always, it is either the fault of your driver or the other driver who caused the crash. Irrespective of who it is, you may have a path to compensation as an injured passenger. If your driver’s negligence led to the accident while you were onboard the vehicle on a prearranged ride, the rideshare company is legally required to provide a minimum of $1.5 million in liability coverage. In another scenario, you can pursue a claim against the other driver’s insurance. If the other driver is uninsured, the rideshare company is legally required to provide at least $1.5 million in uninsured/underinsured motorist coverage.
What if the insurance doesn’t cover it?
Catastrophic injuries could result in medical costs that easily exceed the commercial policy limits. In these situations, you might need to identify other liable parties who contributed to the accident. You may potentially pursue a third-party claim against another negligent driver involved in the collision. Additionally, if a vehicle malfunction caused the crash, you might have grounds for a product liability claim against the manufacturer.
How a legal guide may help
Direct lawsuits against the rideshare company are typically limited by arbitration clauses, but insurance-based compensation pathways remain available under New Jersey law. An attorney experienced in motor vehicle accident claims can negotiate with the corporate insurers to seek a fair settlement that reflects the severity of your injuries.