What If the Rideshare Driver Doesn’t Have Insurance in Chicago?

What if the rideshare driver doesn’t have insurance? You can seek reimbursement for your damages in Chicago by filing an insurance claim with the rideshare company’s insurer, through your own uninsured motorist coverage, or through a personal injury lawsuit against the uninsured rideshare driver.

Rideshare accidents can be more challenging to navigate than regular car accidents due to drivers being independent contractors and not employees of the rideshare companies, rides having different phases, the number of applicable insurance policies, and coverage limitations. The rideshare driver lacking insurance makes what’s already a legally complex situation even more complicated. Having the right knowledge and seeking professional advice can save you stress and help ensure you receive fair compensation.

Contact DePaolo & Zadeikis uninsured motorist lawyers at 312-263-7560 for a free consultation about your options in Chicago.

What Are the Insurance Requirements for Rideshare Drivers in Illinois?

Rideshare services have revolutionized transportation in Illinois and throughout the country. The number of vehicles registered as rideshare vehicles in Chicago rose from 26,803 in March 2015 to 117,557 in December 2017. In 2023, the rideshare sector’s revenues grew by nearly 15%. According to a recent Argonne National Laboratory report, there’s an average of approximately 1,600 rides per rideshare driver per year in Chicago.

With rideshare services surging and more active rideshare vehicles being added to the already busy roads of Chicago, concerns have arisen about accidents and liability. Consequently, Illinois has striven to regulate rideshare companies, which the state collectively refers to as Transportation Network Providers. Illinois has regulations on rideshare insurance to protect drivers and passengers in case of an accident.

Under the Illinois Transportation Network Providers Act, drivers must carry liability insurance with a minimum policy limit of $50,000 per person and $100,000 per incident for injury and death and $25,000 for property damage per incident when actively driving for rideshare services. Rideshare drivers must have a minimum of $50,000 in uninsured and underinsured motorist coverage from the moment a passenger enters a vehicle to when he or she exits it. The set minimums for rideshare drivers are higher than the minimum amounts required for all drivers in Illinois.

Other key state requirements for rideshare insurance include auto liability insurance of at least $1 million for death, injury, and property damage from when a rideshare driver accepts a trip to when the trip is complete. The driver’s liability insurance, rideshare company’s insurance, or a combination of the policies may satisfy the coverage requirements.

What Happens If a Rideshare Driver Doesn’t Have Insurance?

Whether actively looking for a fare, responding to a customer request, rushing to pick up a customer, or driving through unfamiliar neighborhoods, rideshare drivers can cause crashes. In such cases, you can recover damages from the driver’s insurance policy. But what if the rideshare driver doesn’t have insurance?

Victims have several options for recovering damages if the rideshare driver responsible for their injuries lacks insurance, including filing a claim against the ridesharing company’s insurance, filing an uninsured motorist claim with the help of uninsured motorists lawyers, suing the at-fault driver, or recovering from other third parties.

Filing Under the Rideshare Company’s Uninsured Motorist Policy

Rideshare companies have an uninsured motorist policy you can utilize if the rideshare driver lacks insurance. Even if the driver has an individual insurance policy, the insurer may deny coverage on the basis of coverage only being offered for personal use and not business use, like working for a rideshare company. Therefore, when offering rideshare services, the driver may have no liability coverage under his or her personal insurance policy to cover your damages, so you’d have to seek coverage from the rideshare company’s insurance.

Rideshare companies are for-profit companies. As a result, they’ll likely do their best to minimize your payout or deny your claim. These multibillion-dollar companies can use their vast resources to defeat claims. Such tactics and disputes over liability are some of the issues that could leave you wondering, “Why is my car accident settlement taking so long?”

You shouldn’t dismiss your chances of recovering from a rideshare company after an accident with a rideshare driver before consulting a car accident attorney. An experienced attorney will help you gather all the facts, recover the necessary evidence, and ensure the right party or parties are held accountable for your losses.

The rideshare company-provided insurance coverage doesn’t always apply, for example, when the driver wasn’t logged into the rideshare app at the time of the crash. If the rideshare driver doesn’t have insurance anymore under the rideshare company’s insurance coverage, you still have avenues to recover your damages.

Filing Under Your Uninsured Motorist Coverage

If the driver was offline at the time of the crash, and he or she doesn’t have his or her own car insurance, you could file a claim with your insurance provider under your uninsured motorist policy. This coverage compensates you if the at-fault driver is uninsured or not known, such as after a hit-and-run accident. Illinois law requires liability insurance policies to include uninsured coverage.

The minimum limits for uninsured motorist coverage are the same as those of liability insurance, which is $25,000 per person injured and $50,000 per accident. Uninsured motorist coverage covers bodily injury. You could get additional uninsured motorist coverage for property damage from your insurance company. This will cover the costs of repairing or replacing your car and other damaged items. It’s not mandatory to get this additional coverage. Underinsured motorist coverage has the same requirements as uninsured motorist coverage. Underinsured coverage kicks in when the other driver’s policy limits aren’t enough to cover your medical expenses.

Even though it’s your insurer that provides you with uninsured and underinsured motorist coverage, the insurer will act as though it were the at-fault driver’s insurance company. You’ll still need to prove that the rideshare driver was at fault for the crash. Your insurance company will be looking to minimize or avoid paying your claim. As a result, working with an uninsured motorist lawyer is crucial to protecting your right to compensation.

Suing the Rideshare Driver

You can sue the uninsured rideshare driver to recover your damages directly from him or her. Illinois is an at-fault state. If the rideshare driver is at fault for your accident, he or she will still be held responsible for your damages despite lacking liability insurance. Therefore, you can file a personal injury lawsuit against the driver in court. If the court awards you damages, the driver will be obliged to pay you from his or her assets. The driver’s wages may also be garnished until you’re fully compensated.

Filing a Third-Party Claim

Other parties could have contributed to your rideshare accident. You could file a claim against such third parties. For example, you could file a claim against a vehicle or parts manufacturer if a defect caused the accident or worsened your injuries. If poor road maintenance contributed to your accident, you could have a claim against the organization or entity in charge of maintenance.

What to Do After an Accident with an Uninsured Rideshare Driver

Follow these steps after a rideshare accident to protect your rights and increase your chances of securing adequate compensation:

• Seek medical care: Get checked by a medical professional as soon as possible, even if you feel okay. A medical examination will reveal whether you suffered minor or major injuries and document them.
• Report the accident: Make sure you report the crash to the police. The police report will be vital when you file an insurance claim or lawsuit later. You should also report the accident to your insurance company and the rideshare company. Be careful when making a report, as what you say could later be used against you when making a claim.
• Document the scene: Take pictures of the accident scene, including the road conditions, damage to the vehicles involved, and your visible injuries.
• Exchange information: Take the contact details of any witnesses. Get the contact details of any other parties involved and the insurance information of all the drivers involved.
• Consult a lawyer: A Chicago lawyer will help you determine whether you have a legitimate claim, who is liable, the damages you could recover, and guide you through the next steps to take to recover these damages. Your lawyer will know how to deal with rideshare companies and the insurance companies involved, and advise you on whether a settlement offer is reasonable.

If you were injured in an accident with a rideshare driver who didn’t have insurance, DePaolo & Zadeikis uninsured motorist lawyers can help you understand your options and get you compensation. For over 30 years, we’ve helped countless Chicagoans get justice and compensation for their motor vehicle crash injuries. We’ll provide the guidance and support you need to navigate the claims process successfully. Contact us today to get started.