However, as there are more and more Uber drivers and passengers, so is there a rise in accidents.
In order for Uber to remain such an affordable and efficient service, Uber doesn’t consider their drivers as employees in a traditional sense of the word. Instead, Uber drivers are recognized as independent contractors. This is necessary for the obvious reason – to avoid legal liability in case of accidents and sustained injuries. Therefore, each Uber driver must have his/her own insurance, and in addition, Uber covers you with a $1 million per ride policy.
As Uber provides a technological solution more than it serves as a traditional transportation company, it legally muddies the water. The Uber driver will therefore always be more responsible for the safety of his ride and passengers than Uber itself. However, Uber must take responsibility in cases where it can be proven that it did not follow its own procedures: background check of the driver, state of his vehicle, and insurance coverage of the driver.
Only recently did Uber change its policy where it did not provide insurance coverage for drivers if there was no customer present in the car. After a public outcry coming from a tragic accident, Uber now offers between 25,000 to 100,000 dollars of contingent coverage for Uber drivers between their passenger trips.
Consequently, if you are an Uber driver, a passenger in Uber car, a pedestrian or a driver in another car who got into an accident with an Uber car, you are entitled to a compensation from both the Uber driver’s insurance and from the Uber’s fixed rate coverage policy.