You’re riding in an Uber when another car slams into it at a busy intersection. You’re left with a pounding headache and the sudden worry of who will cover your medical bills. Even five years ago, situations like this in South Carolina left victims with more questions than answers.
Today, South Carolina has developed a more defined framework for handling rideshare accidents. Our Anderson car accident lawyer will explain how liability works in Uber and Lyft accidents, helping you to seek appropriate compensation after a crash involving these popular services.
South Carolina Initially Struggled With Rideshare Liability
When rideshare companies first came to South Carolina, the state’s insurance laws weren’t set up to handle them appropriately. Taxi rules didn’t fit the companies’ use of independent contractors, and Uber accident victims often fell into gaps in coverage.
Most personal auto policies excluded commercial driving. So, insurers regularly denied claims, while the rideshare companies themselves offered only limited protection.
South Carolina lawmakers recognized the need for clearer regulations. In 2015, the state passed legislation addressing transportation network companies (TNCs) like Uber and Lyft. This law, codified in S.C. Code Ann. §§ 58-23-1610 et seq., established minimum insurance requirements and clarified when coverage applies.
Current South Carolina Rideshare Liability Framework
Today's liability structure follows a tiered system based on the driver's activity at the time of the accident, determining which insurance coverage applies and how to pursue compensation.
Driver Available but No Ride Requested
When an Uber or Lyft driver has the app open but hasn't received a ride request, they're in the first coverage period. The statute requires primary liability coverage of at least:
- $50,000 for bodily injury per person
- $100,000 for bodily injury per accident
- $50,000 for property damage
If the driver's personal policy doesn't apply, the TNC's policy steps in from dollar one. Under S.C. Code Ann. § 58-23-1625, South Carolina law expressly allows personal auto insurers to exclude coverage while a driver is logged on or providing a prearranged ride.
Prearranged Ride: Acceptance to Passenger Exit
Under S.C. Code Ann. § 58-23-1610(9), a "prearranged ride" covers both the trip to pickup and the time riders are in the vehicle. Once a driver accepts a ride request, this period continues until the last passenger exits.
During the entire prearranged ride period, rideshare companies must provide at least $1 million in primary liability coverage per S.C. Code Ann. § 58-23-1630(C). The law requires uninsured motorist (UM) coverage per S.C. Code Ann. § 38-77-150, but does not mandate underinsured motorist or comprehensive/collision coverage.
Liability Issues for Different Types of Accident Victims
The evolution of rideshare accident liability laws has addressed scenarios involving different types of victims. South Carolina's approach recognizes that rideshare accidents can involve multiple parties with varying relationships to the transportation service.
Passengers Injured in Rideshare Vehicles
Passengers have strong protection when injured during prearranged rides. During a prearranged ride, $1 million in primary liability is in place. Passengers typically recover from the at-fault party's liability coverage or from uninsured motorist coverage if the at-fault driver is uninsured.
Other Motorists Hit by Rideshare Drivers
Drivers of other vehicles face different liability considerations depending on the app status at the time of the collision. Coverage can vary dramatically based on whether the rideshare driver was actively engaged in providing services.
During prearranged rides, other motorists typically benefit from $1 million liability coverage. However, app-on-but-no-ride accidents may only have limited coverage of $50,000 for bodily injury per person, $100,000 for bodily injury per accident, and $50,000 for property damage.
Pedestrians and Cyclists Struck by Rideshare Drivers
Pedestrians and cyclists hit by rideshare drivers generally fall under the same coverage rules as other third parties. These accidents often cause serious injuries, and the amount of coverage available depends heavily on the driver’s app status at the time of the crash.
Determining App Status in Accident Cases
A crucial aspect of modern rideshare liability law involves determining the exact app status at the time the accident occurred. Under S.C. Code Ann. § 58-23-1625, South Carolina law requires TNCs and insurers to exchange precise log-on/log-off times and other information needed to determine coverage and status.
Determining the driver’s app status is critical in an accident claim. A collision that happens just before a ride request is accepted may fall under the lower coverage limits, while one that occurs right after acceptance triggers the full $1 million policy.
Emerging Legal Issues and Future Developments
As rideshare services expand, new legal questions continue to surface. Self-driving technology, changing business models, and services beyond passenger trips all raise issues that South Carolina courts and lawmakers will need to address.
Modern apps also track enormous amounts of data about drivers, routes, and passenger trips. That data can be powerful evidence in an accident case, but it isn’t always easy for attorneys or courts to access or interpret.
With companies like Uber now operating food delivery and other services alongside ridesharing, drivers may switch roles several times in a single shift. Each change can affect which insurance coverage applies, creating fresh challenges for accident victims seeking compensation.
