Transportation Networks and Car Accidents

Brien Roche

Transportation network companies are very popular.  Companies such as Uber, Lyft and others are transportation network companies.  They are not common carriers per 46.2-2000.There is also a company by the name of Empower that is a transportation network c

ompany.  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 Networks Car Accidents-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.

If you need insurance information from a transportation network company, you can make a written request to the company with the date, approximate time, location and if available, the driver’s name and a copy of the Police Crash Report. Per Virginia Code § 46.2-2099.52(G), they must respond within 30 days by furnishing or stating the name of the insurer providing primary coverage, the last known address of the driver and whether the driver was logged into the digital platform and whether the driver was acting in the course of a passenger transaction at the time of the collision.
A link to determine what the available coverage is for Lyft vehicles is https://help.lyft.com/hc/en-us/articles/115013077408. Uber coverage can be found at https://www.uber.com/blog/uber-us-insurance

Also 46.2-2143.1 et seq. may apply to companies like Door Dash if they are a motor carrier.

The coverage requirement 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.

Read the statute for the precise requirements. In general the driver must have at least $50,000 coverage when in service and with a passenger the coverage bumps up to $1,000,000 liability and UM/UIM.

Transportation Networks Car Accidents-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.

Peer to Peer Companies

Companies like Turo which are so-called vehicle sharing companies are governed by Virginia Code § 46.2-1408. Under Virginia Code § 46.2-1409, they are required to carry the same minimum limits as is required under Virginia Code § 46.2-472.

Call or contact us for a free consult. Also for more information 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.

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