Who Is Responsible for a Vermont Car Accident Involving a Rideshare Vehicle?

While Vermont is known as a haven for all sorts of outdoor recreation such as bicycling, skiing, and snowmobiling, when it comes to just getting around town to handle your daily errands, most residents still depend on a car. Of course, in recent years we have seen the rise in rideshare services, companies like Uber and Lyft, which allow individual drivers to provide paying customers with trips prearranged through a convenient smartphone application.
Rideshare drivers differ from traditional taxicab and limousine drivers in a number of ways. As noted above, rideshare drivers typically use their personal vehicles as opposed to cars owned as part of a corporate fleet. The drivers themselves are also generally classified as “independent contractors” rather than employees of the rideshare companies. Among other things, this means that a company like Uber or Lyft generally is not vicariously liable for an accident caused by a driver using their apps.
So what exactly is a rideshare company’s responsibility when it comes to a car accident? Below is a brief guide to how Vermont regulates these companies. We will also explain some steps you can take if you are ever involved in an accident involving a rideshare vehicle.
Transportation Network Companies
The legal term that most states now use to describe rideshare businesses like Uber and Lyft are “Transportation Network Companies” or TNCs. Vermont law defines a TNC as any business that “uses a digital network to connect riders to drivers who provide prearranged rides.” A digital network in turn refers to any online application or website used to arrange such rides, i.e., the Uber or Lyft app on your smartphone.
Another key aspect of a TNC is that drivers who accept and provide rides use a “personal vehicle” to do so. A personal vehicle is one that is “owned, leased, or otherwise authorized for use by the driver,” and does not otherwise meet the definition of a “taxicab, limousine, or other for-hire vehicle.” Critically, these vehicles do not belong to the TNC.
Insurance Requirements and TNC Vehicles
Individuals who use their personal vehicles to provide rideshare services for a TNC must follow the same basic insurance requirements as any Vermont driver. Under current Vermont law, all drivers must carry a minimum amount of liability coverage, which is meant to cover accidents resulting from the fault of any driver covered by the policy. These minimums are presently $25,000 per person or $50,000 per accident for personal injury or death, and $10,000 per accident for property damage. (Alternatively, Vermont car owners can file proof of “self-insurance” if they have an “unencumbered net worth” of at least $115,000, although this is uncommon.)
In addition to these personal auto insurance requirements, Vermont’s TNC law requires any driver who uses their personal vehicle to transport paying passengers to “maintain primary automobile insurance” of at least $50,000 in personal injury coverage per person or $100,000 per accident, and $25,000 in coverage for any property damage. This coverage may be purchased by the driver on their own, provided by the TNC for the driver, or include a combination of both types of coverage.
In practice, established TNCs like Uber and Lyft provide this coverage for any driver while they are logged into the company’s respective app and “available” to accept paying customers. Once a driver is actually engaged in a prearranged ride, the amount of required liability insurance coverage increases to $1 million for any death, personal injury, or property damage; $ 1million for uninsured and uninsured motorist coverage; and $5,000 in medical payments (Med Pay) coverage.
Some Hypothetical Car Accident Cases
If all of these rules and numbers seem difficult to follow, here are some hypothetical examples of how Vermont’s TNC rules apply to specific types of car accidents:
Josephine arranges a ride through the Lyft app. During her trip, the Lyft driver runs through a stop sign and collides with another vehicle in the intersection. Josephine sustains serious injuries in the accident. Since the accident occurred during a prearranged ride, she could seek compensation under the $1 million policy for death, personal injury, or property damage provided by Lyft.
David is crossing the street legally when an Uber driver hits him in the crosswalk. At the time, the Uber driver was logged into the app but had not yet accepted a customer request for a ride. Given this scenario, David would be entitled to seek compensation under the $50,000 per person auto insurance policy provided by Uber.
Matilda is a passenger in an Uber vehicle that is rear-ended by another vehicle. While the driver in the rear vehicle was liable for causing the accident, their insurance does not cover the full amount of Matilda’s medical bills and other accident-related losses. She could therefore seek additional compensation under Uber’s $1 million in underinsured motorist coverage.
Frank is driving his car and gets into a collision with another vehicle. The other driver does regularly use his vehicle to provide rides for Uber and Lyft passengers, but he wasn’t logged on to the app when the accident occurred. Frank could therefore only seek compensation through the other driver’s personal auto insurance coverage.
Steps to Take Following an Accident Involving a Rideshare Vehicle
There are some simple, commonsense steps you can take following any accident involving an Uber or Lyft driver that can help strengthen your case for compensation if you suffered any injuries:
Always seek immediate medical attention, even if you think you are okay.
Report the accident to the police and get a copy of the resulting accident report.
Take down the names of anyone involved in the accident as well as any witnesses who may have seen what happened.
Report the accident to the applicable rideshare companies.
Do not discuss the accident in detail with anyone, including the police or the rideshare company, before first speaking to a qualified Vermont car accident lawyer.
Contact Larson & Gallivan Law Today
Dealing with the physical, emotional, and financial toll of a car accident can be overwhelming. Most people in that position do not want to deal with the additional stress of sorting out legal liability, especially when a large company like Uber or Lyft is involved. This is where it can help to have an experienced Vermont car accident lawyer to represent your interests. Contact Larson & Gallivan Law today at 802-327-8458 to schedule a free initial consultation.

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