Rideshare Accidents Involving Uninsured or Underinsured Drivers

Imagine that you booked an Uber or Lyft after a long day of work in Chicago’s bustling Loop, hoping to get back to your home in Lincoln Park safely. Halfway through your ride, another driver runs a red light near Navy Pier, smashing into your rideshare vehicle. You’re left dazed, injured, and in immense pain. 

When you finally gather your wits and attempt to file a claim, you discover the at-fault driver had no insurance—or had coverage so minimal it won’t even dent your medical bills. Where do you turn?

The aftermath of a rideshare accident is already overwhelming. Hospital visits might pile up; you might miss weeks—or even months—of work while you recover. Bills can skyrocket overnight. When the at-fault party has zero insurance or only a tiny policy, it can feel like the deck is stacked against you. 

The rideshare company may only reply with generic responses, leaving you feeling alone and powerless. Yet you’re stuck with real injuries, real expenses, and real trauma.

Take a breath. The Romaker Law Firm is here to help you navigate these complicated insurance issues, fight for your rights, and pursue every avenue of compensation you deserve. With over 30 years of experience in personal injury and workers’ compensation law, our Chicago attorneys understand local traffic challenges and the complexities of uninsured or underinsured (UM/UIM) coverage. 

Whether you need help understanding Uber’s policy, dealing with your own insurance, or filing a lawsuit against the responsible driver, we’ll be by your side every step of the way. Call us at (312)-377-7000 for a free consultation.

On this page, we’ll discuss key points about rideshare accidents involving uninsured or underinsured drivers, from understanding your coverage options to proving fault and seeking compensation. We’re here to simplify these issues so you can focus on healing.

When an at-fault driver lacks insurance—or doesn’t carry enough coverage to address your losses—it can complicate your path to financial recovery. Fortunately, there are legal protections and insurance policies designed for these specific situations.

What Is Uninsured/Underinsured Motorist Coverage?

• Uninsured Motorist (UM) Coverage: This type of coverage steps in when the at-fault driver has no auto insurance whatsoever.
• Underinsured Motorist (UIM) Coverage: This applies when the at-fault driver has some insurance, but the policy limits are too low to cover the injured party’s total damages—medical costs, lost wages, or pain and suffering.

In Illinois, insurance companies must offer UM coverage as part of basic auto insurance policies. Many drivers purchase it, but coverage amounts vary.

How Does This Relate to Rideshare Accidents?

Rideshare platforms like Uber and Lyft often include UM/UIM coverage in their insurance policies, but only during certain “periods” of a trip. 

For example, if your driver has the rideshare app on and is actively transporting you when another motorist collides with the vehicle, you may be eligible for the rideshare company’s UM/UIM benefits—if the at-fault driver lacks sufficient coverage.

Typical Rideshare Coverage Periods

1. App Off: The driver’s personal insurance applies.
2. Waiting for a Ride Request: Limited contingent liability coverage from Uber/Lyft might apply.
3. En Route or During a Trip: Up to $1 million in liability coverage (including UM/UIM) can apply, depending on the specific policy terms.

Each scenario can drastically change the potential compensation. An experienced rideshare attorney can examine the details of your case to determine which policy applies and the extent of coverage available.

After a collision, it’s normal to feel shaken or even disoriented—particularly when the at-fault driver has no insurance. While you’re focusing on your recovery, taking certain practical steps can protect your right to compensation:

1. Call 911 and Seek Medical Attention: Your health is the top priority. You may need immediate treatment for injuries, which could range from broken bones to traumatic brain injuries. Once you’ve addressed your immediate physical health, contact the police to ensure there’s an official accident report done. 
2. Gather Information and Evidence: Even if the at-fault driver says they don’t have insurance, collect whatever identification they can provide (driver’s license, contact information). Take pictures of the accident scene, vehicle damages, and your injuries. If there are witnesses, gather their contact details. This evidence can prove crucial if the insurance situation gets complicated.
3. Notify Uber or Lyft: Report the accident through the rideshare platform. They should open a claim file and potentially provide information on available coverage. However, be cautious with any statements. Focus on the facts of the crash; do not accept blame or minimize injuries.
4. Contact Your Own Insurance Company: If you have personal UM/UIM coverage, alert your insurance company immediately. However, do not rely solely on them to handle everything. Insurance adjusters, even your own, might push for a quick or inadequate settlement.
5. Consult a Rideshare Accident Attorney: This is perhaps the most critical step if you feel overwhelmed. An experienced lawyer understands how to coordinate multiple insurance policies and can advise you on specific tactics to maximize compensation. They can also shield you from the stress of dealing with insurance companies directly.

Even if the at-fault driver is uninsured or underinsured, you still have the legal burden of proving that driver’s negligence caused your injuries. Negligence, in simple terms, means the driver failed to exercise reasonable care, leading to the collision and your resulting damages.

Elements of Negligence

1. Duty of Care: Drivers have a legal and ethical responsibility to operate their vehicles in a manner that safeguards everyone on the road. This means adhering to all traffic laws and regulations, adjusting driving behaviors in response to changing road conditions, and taking all reasonable steps to prevent accidents. This duty extends beyond just other drivers to include pedestrians, cyclists, and passengers. In essence, every driver is expected to maintain vigilance and care, ensuring their actions do not create undue risk for others. Whether navigating busy city streets or quiet suburban roads, this standard of care forms the bedrock of all safe driving practices and is crucial to preventing accidents.
2. Breach of Duty: To establish negligence, it must be demonstrated that the at-fault driver failed to uphold their duty of care. This breach occurs when a driver engages in unsafe behaviors such as speeding, running red lights, or texting while driving. Each of these actions represents a clear departure from the standard of care that a reasonably prudent driver would observe. Evidence such as traffic camera footage, eyewitness accounts, and police reports can be instrumental in proving that the driver’s conduct was not only careless but also directly violated established traffic laws and safety norms, thereby creating a hazardous situation.
3. Causation: It is not enough to show that a breach occurred; you must also establish a direct link between the driver’s negligent actions and the accident. This means demonstrating that the breach of duty was a significant, proximate cause of the incident and the subsequent injuries. Accident reconstruction experts and detailed investigative reports can help illustrate how the driver’s actions directly contributed to the collision, ensuring that the connection between negligence and harm is clear and compelling.
4. Damages: Finally, to complete a negligence claim, you must prove that the accident resulted in actual harm. This includes quantifiable losses such as medical expenses, rehabilitation costs, lost income, and any other financial burdens incurred due to the accident. Additionally, non-economic damages such as pain, suffering, and emotional distress are considered. Detailed medical records, wage statements, and expert testimonies regarding the long-term impact of the injuries are essential to substantiate these damages. 

Together, these elements ensure that the injured party is fully compensated for the physical, emotional, and financial toll of the accident.

Evidence to Establish Negligence

• Police Reports: Often the first step to show the at-fault driver broke a traffic law or was cited for reckless driving.
• Eyewitness Accounts: Statements from passengers, bystanders, or other motorists can confirm unsafe behavior.
• Vehicle Damage Analysis: Photos and crash reconstruction reports can reveal how the collision happened.
• Surveillance Footage: Busy Chicago intersections, like those near Magnificent Mile or Lake Shore Drive, may have cameras that captured the accident.
• Driver’s History: Records of prior traffic violations, DUIs, or accidents can strengthen your claim of negligence.

Although the at-fault driver may not have insurance, proving negligence is crucial to accessing rideshare UM/UIM coverage or tapping into your personal insurance. If you can firmly establish fault, you stand a better chance at recovering the money you need for a full physical, emotional, and financial recovery.

When you’re hurt in a rideshare accident caused by an uninsured or underinsured driver, you might feel like you’re hitting a brick wall. The at-fault driver can’t pay, so who does? Fortunately, multiple avenues can offer financial relief:

1. Rideshare Company Insurance (UM/UIM): If you were a passenger during an active ride, Uber or Lyft typically provide up to $1 million in coverage, which can include UM/UIM benefits. This coverage is meant to handle costs if the responsible third party lacks adequate insurance.
2. Personal Uninsured/Underinsured Motorist Coverage: If you have your own auto insurance policy, it often includes UM/UIM protection. You may file a claim with your insurer—though this can become complicated if you’re also pursuing compensation through Uber or Lyft’s policy. Having an attorney can help coordinate these claims to prevent underpayment or denial.
3. Health Insurance: While not a legal remedy, your health insurance can cover immediate medical expenses. However, your health insurer may place a lien on any personal injury settlement, requiring reimbursement for any medical bills they covered. It’s critical to work with a lawyer who can negotiate those liens, so you’re not left with pennies after your settlement.
4. Personal Injury Lawsuits Against the At-Fault Driver: In some cases, you may pursue legal action directly against the uninsured or underinsured driver. However, if they lack insurance, it’s unlikely they have significant personal assets. Still, establishing legal liability can strengthen your ability to claim coverage from the rideshare’s UM/UIM insurance or your own policy.
5. Workers’ Compensation (Unique Scenarios): Were you “on the clock” for your employer while using Uber or Lyft for work purposes? In rare scenarios, you might be eligible for workers’ compensation benefits. Such cases are tricky but can apply if riding in a rideshare vehicle is part of your job description.

Damages You Can Claim

• Medical Bills: Hospital stays, surgeries, physical therapy.
• Lost Income: Compensation for wages lost due to injury and time off.
• Pain and Suffering: Emotional distress, reduced quality of life.
• Property Damage: If any of your personal belongings (phone, laptop) were damaged in the crash.
• Wrongful Death: If a loved one tragically passed away due to an uninsured or underinsured driver in a rideshare crash, you may seek wrongful death damages for funeral costs, loss of companionship, and more.

The total value of your claim will vary based on the extent of injuries, your medical needs, and how the accident impacts your life. Having experienced legal counsel ensures you pursue every form of compensation available under Illinois law and rideshare insurance regulations.