What You Need to Know About No-Fault Insurance and Rideshare Accidents in New Jersey

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Rideshare services like Uber and Lyft have transformed transportation, making travel more convenient. However, when accidents occur, determining liability and insurance coverage can become complicated. If you are involved in a rideshare accident in New Jersey, you may have several concerns:

• Who is responsible for covering medical bills and damages?
• Can you file a no-fault claim under your insurance?
• What happens if the rideshare driver is at fault?
• Can passengers sue Uber or Lyft after an accident?

Since New Jersey operates under a no-fault insurance system, it significantly impacts how medical bills and accident-related expenses are handled. This guide will explain how no-fault insurance applies to Uber and Lyft accidents, how to file a claim, and what to do if you need legal assistance after a rideshare crash.

 

Understanding New Jersey’s No-Fault Insurance System

What is No-Fault Insurance?
New Jersey follows a no-fault insurance system, meaning that medical expenses after an accident are covered by the injured person’s own Personal Injury Protection (PIP) insurance, regardless of who was at fault. The primary purpose of no-fault insurance is to allow accident victims to receive medical treatment quickly without waiting for a fault determination. However, PIP does not cover pain and suffering unless the injuries are severe or permanent.

What Does PIP Cover?
PIP insurance typically covers:

• Medical expenses related to the accident
• Lost wages if injuries prevent the person from working
• Essential services such as household help if the injury prevents daily tasks

However, PIP does not cover vehicle repairs or compensation for pain and suffering unless the injuries meet specific severity thresholds.

 

Who Pays for Medical Bills After an Uber or Lyft Accident in New Jersey?

Determining who is responsible for paying medical bills depends on the circumstances of the accident and the insurance policies involved.

If You Are an Uber or Lyft Passenger
Your own PIP insurance will cover medical expenses if you have one. If you do not have PIP coverage, Uber or Lyft’s PIP insurance may apply.

If You Are a Rideshare Driver

• If you are offline (not using the Uber/Lyft app), your personal auto insurance applies.
• If you are waiting for a ride request, Uber and Lyft provide contingent liability insurance.
• If you have a passenger in your car, Uber and Lyft’s $1 million liability policy applies.

If You Are Another Driver Hit by a Rideshare Vehicle
Your own PIP insurance will cover your medical expenses first. If the rideshare driver was at fault, you may be able to claim additional compensation from Uber or Lyft’s liability insurance.

 

Rideshare Insurance Coverage in New Jersey

How Much Insurance Does Uber & Lyft Provide?

Uber and Lyft provide different levels of insurance coverage, depending on whether the driver is offline, waiting for a ride request, or actively transporting a passenger.

If the Driver is Offline

• Their personal auto insurance applies.
• Uber and Lyft do not provide coverage.

If the Driver is Waiting for a Ride Request
Uber and Lyft provide contingent liability coverage of up to:

• $50,000 per person for bodily injury
• $100,000 per accident

This coverage applies only if the driver’s personal insurance does not cover the accident.

If the Driver Has a Passenger or is on the Way to Pick One Up
Uber and Lyft’s $1 million liability insurance policy applies. This also includes uninsured/underinsured motorist coverage.

What Happens If Another Driver Causes the Accident?

If another driver caused the accident, their insurance should cover damages first. However, if they are uninsured or underinsured, Uber and Lyft provide additional uninsured/underinsured motorist (UM/UIM) coverage for rideshare passengers and drivers.

 

Filing a No-Fault Insurance Claim After a Rideshare Accident

If you were injured in a rideshare accident, you must file a no-fault insurance claim to receive compensation for your medical expenses. The process includes several important steps.

Step 1: Report the Accident
Notify Uber or Lyft through their app, call the police, and file an official accident report. Also, inform your insurance company about the accident.

Step 2: Seek Medical Treatment
Even if you feel fine, get checked by a doctor. Some injuries, such as whiplash or internal bleeding, may not be immediately apparent but can worsen over time.

Step 3: Gather Evidence
Take photos of the accident scene, your injuries, and vehicle damage. Collect witness statements, obtain a copy of the police report, and keep medical records and bills related to the accident.

Step 4: File a PIP Claim
Submit your PIP claim to your insurance company or Uber/Lyft’s insurance provider. Ensure that all necessary documents, including medical records and police reports, are included. Be aware of claim deadlines, as waiting too long can result in a denied claim.

Step 5: Consult a Lawyer If Needed
If your claim is denied or your medical expenses exceed your PIP coverage limits, you may need legal assistance to pursue additional compensation.

 

Can You Sue Uber or Lyft After an Accident?

When Can You File a Lawsuit?
Under New Jersey’s no-fault system, lawsuits for pain and suffering are limited. However, you may be able to file a personal injury lawsuit if:

• You suffered permanent injuries, such as brain damage or paralysis.
• Your medical bills exceed PIP coverage limits.
• Uber or Lyft failed to provide proper insurance coverage.

 

Common Mistakes to Avoid After a Rideshare Accident

Failing to Report the Accident
Not reporting the accident to Uber, Lyft, and the police can make it harder to prove what happened and who was at fault.

Not Seeking Immediate Medical Attention
Some injuries take time to show symptoms. Delaying medical treatment can make it harder to link your injuries to the accident.

Accepting a Low Settlement Offer
Insurance companies often try to settle claims quickly for less than what you deserve. Be cautious before accepting any settlement offer.

Missing the Deadline to File a Claim
New Jersey has strict deadlines for filing no-fault claims and personal injury lawsuits. If you wait too long, your claim may be denied.

Not Consulting a Lawyer
If your claim is denied or if your injuries are severe, a lawyer can help you pursue additional compensation.

 

Frequently Asked Questions About Rideshare Accidents in New Jersey

Can I sue Uber or Lyft after an accident?
In most cases, you cannot sue Uber or Lyft directly because their drivers are considered independent contractors, not employees. However, if your injuries are severe and your medical bills exceed PIP coverage limits, you may be able to sue the at-fault driver or pursue additional compensation from Uber or Lyft’s insurance policy. If the company was negligent in its hiring or safety policies, there may be grounds for a lawsuit.

What happens if my Uber or Lyft driver was at fault?
If your Uber or Lyft driver was at fault, you are generally covered under their insurance. If you have PIP insurance, you must file a claim through your policy first. However, if your damages exceed PIP limits, you may seek compensation from Uber or Lyft’s $1 million liability policy. A legal consultation can help determine the best course of action based on your injuries and expenses.

Who pays for my medical bills after a rideshare accident?
Your own PIP insurance will cover your medical bills first, regardless of who was at fault. If you do not have PIP coverage, Uber or Lyft’s insurance may cover your medical expenses. If another driver caused the accident, their insurance should cover damages once PIP benefits are exhausted. If all else fails, you may need to file a lawsuit or explore uninsured/underinsured motorist coverage.

What if I was a passenger in an Uber or Lyft when the accident happened?
If you were a passenger in an Uber or Lyft, you may be covered under Uber or Lyft’s insurance policy. You can file a PIP claim with your own auto insurance if applicable. If you do not have PIP coverage, Uber or Lyft’s insurance should cover medical expenses and other damages up to the policy limits.

How long do I have to file a no-fault insurance claim?
In New Jersey, you must notify your insurance company of the accident as soon as possible and file a no-fault claim within the required time limit. For personal injury lawsuits, the statute of limitations is generally two years from the date of the accident.

 

Contact The Epstein Law Firm, P.A., Today

Understanding no-fault insurance and rideshare coverage is crucial after an Uber or Lyft accident. Whether you are a passenger, rideshare driver, or third-party motorist, knowing how to file a claim and what insurance policies apply can help you get the compensation you deserve. If you have been injured, contact The Epstein Law Firm, P.A., today to protect your rights.