Transportation Networks and Car Accidents

Brien Roche

Transportation network companies are very popular.  Companies such as Uber, Lyft and others are transportation network companies.  There is also a company by the name of Empower that is a transportation network company.  Empower however does not carry insurance coverage.  They claim that they require that their drivers have coverage.  However if the driver’s coverage is simply their personal auto coverage and they’re engaging in a livery service, then their coverage is voided.  

Transportation Network Car Accident-Va Law

However Virginia law fills in the gaps.  A transportation network company must provide liability and also UM/UIM coverage.  This applies while the driver is transporting a passenger. 

The pertinent Code section is Virginia Code § 46.2-2099.52.  A link to determine what the available coverage is for Lyft vehicles is https://help.lyft.com/hc/en-us/articles/115013077408

This Code section applies where the driver is logged into the network.  Also it applies where the driver accepts a prearranged ride request.

When the driver is logged into the system, the transportation network company must verify that the driver has a policy. 

At that time the driver must have at least $50,000 in coverage per person.

Transportation Network Car Accident-Logging In vs Accepting

When the driver accepts a prearranged ride request on the company’s digital platform, he must have $1,000,000 in liability coverage and $1,000,000 in UM/UIM coverage.  That continues until the driver completes the transaction or until the prearranged ride is completed, whichever is later.

The liability coverage is primary.

The UM/UIM coverage applies from the moment the passenger enters the vehicle until the passenger exits the vehicle.

The statute is clear.  The company must verify that the driver has this coverage. 

Companies like Empower attempt to shift the burden to the driver.  That is, the driver has to get the coverage.  That may work if the company has assured compliance.  If the company has not assured compliance, then the company is on the hook.

Marginal companies or start-ups may be able to evade responsibility.  That is part of the risk of using these types of companies for transportation because their thin financial resources may put them out of reach.  

Call, or contact us for a free consult. Also for more info on transportation networks see the Wikipedia pages. Also see the post on this site dealing with contract issues since the relationship with the transportation network is contractual/p>