Welcome to the New World of transportation. A taxi? What’s that? Most people now turn to their smartphone for an Uber (or Lyft) ride. Actually, the New World of ride-sharing services (“Transportation Network Companies”, as they’re known legally), have been around since about 2016 or so. While many people are familiar with how they can summon and pay for a ride-sharing service on their smartphones, very few people know how the legal system works in Massachusetts if they are injured either while a passenger in an Uber or Lyft ride, or hit and injured as a pedestrian by an Uber or Lyft driver. This is a really important topic.
Actually, “old-style” taxis and cabs, are a good jumping-off point to discuss the legal and liability insurance differences with ride-sharing services. I’ll try not to bore you here, so here’s the short version: Because of the powerful political influence that the conventional taxi industry carried on Beacon Hill for many, many years, taxis and cabs in Massachusetts were only required to carry bare minimums in bodily injury liability insurance coverage on their vehicles – a paltry $20,000 in liability coverage. An amount that low would barely cover the bills and expenses that a person injured in a Massachusetts taxi accident would likely face: Hospital & medical bills, lost wages and compensation for pain & suffering. For many years, if you were injured in or by a taxi, you’d have to hope that your damages were very low.
Thankfully, that liability picture has changed with the explosion of ride-sharing services like Uber and Lyft. Now, if an Uber driver in Massachusetts is negligent and causes an accident that results in someone’s injury, passengers and pedestrians have expanded legal options in seeking compensation for their injuries. The Massachusetts Ride Sharing Bill, which became law in August 2016, created the state’s first regulations for ride-sharing services like Uber. Under this law, such drivers must now carry at least $50,000 of coverage for bodily injury claims per individual, a minimum of $100,000 of coverage for bodily injury claims per accident and $30,000 of coverage for property damage, uninsured motorist coverage and personal injury protection. (We can explain all those to you when you call us.) The transportation network company must pay for excess insurance coverage, above those limits. The cost of this liability insurance coverage is shared by both Uber corporate and individual Uber drivers. A massive improvement from the measly $20,000 of coverage that the taxi industry got away with for years, no? That’s great news! As Massachusetts Uber accident lawyers, that enables us to obtain far higher financial damages and compensation for clients injured in Uber accidents.