When they first began operating, Uber and Lyft failed to carry adequate insurance coverage for their drivers and were not governed by basic safety regulations applicable to other types of paid transportation networks, such as taxis. Under the law, Uber, Lyft and other such application-based, rideshare carriers are called Transportation Network Carriers “TNC.”

Then, on New Year’s Eve 2013, six-year old Sophia Liu was struck and killed by an Uber driver in San Francisco. Sophia was walking in a crosswalk with her mother and brother. The Uber driver was allegedly looking at the Uber app on his cellphone, while logged into the app, but before he had accepted a passenger. I represented Sophia’s family in the first wrongful death lawsuit brought against a TNC. Her tragic death played a central role in shaping the debate, in California and nationwide, over whether TNC companies were responsible for injuries and deaths caused by their drivers.

As a result, Assembly Member Susan Bonilla introduced Assembly Bill 2293, which I and the Consumer Attorneys of California helped navigate through the legislature. The Liu family came to Sacramento and provided moving testimony calling upon the government to require that TNC companies carry insurance. Ultimately Governor Brown signed the first of its kind legislation in the U.S. requiring TNC companies to carry liability insurance. The law, codified in California Vehicle Code Section 5430, mandates that TNC companies must carry $1 million in liability coverage for their drivers.

Many people have written asking how the law actually works. Here are answers to the most commonly asked questions:

First situation: I was a passenger in a TNC car and injured in an accident caused by the TNC driver. Can I sue the driver? Can I sue the TNC such as Uber or Lyft?

You may bring a case against both the driver and the TNC Company. Keep in mind though, even if the TNC driver was at fault and owns an auto insurance policy, he or she may have no assets to pay for your damages. Since the passage of SB 2293 personal auto policies do not provide coverage for drivers engaged in commercial operations such as carrying passengers in exchange for compensation.

This is why the $1 million in insurance coverage TNC’s must carry for death, personal injury, and property damage caused by their drivers is so important. The $1 million in insurance covers claims arising from the moment the driver accepts a ride request on the TNC app to when the driver completes the transaction on the app or until the ride is complete, whichever is later.

Second situation: I was a TNC passenger and injured in an accident. The collision was the fault of the other driver, not the TNC driver. The other driver has no car insurance. What can I do?

TNC passengers can make a claim against the TNC Company’s insurance, even when the collision was caused by another driver who lacked insurance or had a bare bones policy.

This type of insurance is called uninsured and underinsured motorist coverage. Vehicle Code Section 5430 requires that TNC companies carry $1 million in uninsured and underinsured motorist coverage for passengers. The coverage applies from the moment a passenger enters the TNC until the passenger exits the vehicle or the transaction is complete, whichever comes later.

Third situation: I was injured by an accident caused by a TNC driver, but I was not a passenger in the car. Can I still sue the TNC company/driver to obtain compensation for my injuries?

Yes, you may file a lawsuit against the TNC company/driver and thereby get access to their insurance. I have represented bicyclists, pedestrians and occupants of other vehicles struck by negligently operated Uber and Lyft vehicles. If the accident occurs between the time that the TNC driver logs on, but before a ride is accepted, the TNC insurance is limited to $250,000 per person and $300,000 per occurrence (meaning for all injuries caused to all parties injured by the driver’s negligence.) If the TNC operator has accepted a ride request and is either in route to collect the passenger, or is transporting a passenger, then there is $1 million in coverage.

Please note, the preceding answers are intended to provide general information on the law regarding TNC’s legal insurance requirements. Every accident can raise its own facts and legal questions. If you are injured by a TNC, contact a lawyer with experience in handling Uber and Lyft car accident cases.

Contact Dolan Law Firm: San Francisco Bay Area And Nation’s Leading Uber & Lyft Lawsuit Attorneys

If you were injured in a crash while a passenger in an Uber or Lyft car, or another motorist, pedestrian, bicyclist, or motorcyclist injured by an Uber or Lyft driver, or are an Uber or Lyft driver injured due to the fault of another driver, the Dolan Law Firm can assist you in obtaining the full compensation you are entitled to under the law. Please call us today at 415-636-8160 or complete our online contact form.

We will review your claim and advise you of your legal rights for free, promptly and with no obligation on your part.

We are known for taking challenging and complicated cases to trial and prevailing. As a result, we often obtain recoveries far above industry averages, including some of the largest verdicts and settlements ever in individual injury lawsuits in California.

We provide our clients outstanding legal services backed by substantial financial and technological resources that no individual attorney or small law firm can provide. We work with the leading accident reconstruction and biomechanics experts to demonstrate the full extent of your injuries.

By attorney Christopher B. Dolan, owner of the Dolan Law Firm. Email Chris questions and topics for future articles to help@dolanlawfirm.com