No one plans on being involved in a motor vehicle accident and yet sadly these said occurrences take place rather frequently in cities and on major highways throughout the Maryland, DC, and Virginia metropolitan areas.
It is not uncommon to try to rate shop or to even hail a cab when you need to get from point A to point B in a rush. The next time you do, please take into consideration that many taxi cab companies are self-insured and many of them will have car insurance policy maximums set at $25,000. What this means is that if you are in a taxi and involved in an accident where the taxi driver is at fault or where the taxi driver collides with someone who has the minimum insurance or no insurance available, you may very well be stuck with maximum coverage of $25,000.
$25,000 may seem like a lot of money, however if you have a broken limb or semi-serious injuries your medical treatment alone can exceed this amount of money. And if you have very serious injuries you could very well be financially responsible or in a black hole of medical debt for an accident that wasn’t even your fault. Because these taxi companies are self-insured, they are responsible for their own insurance claims and it doesn’t cost them anything to deny claims until they are sued. Even after taxi companies are sued they can fight you through the entire process and if they then decide to settle or lose at trial the most a Plaintiff or injured person will be able to recover will only be the $25,000 minus legal fees, medical expenses which can leave an injured person with next to nothing or worse, medical debt.
Ride-sharing services have very high insurance coverages, sometimes as high as $500,000.00 per accident. These rates don’t apply until the ride share driver begins the trip. If the ride-sharing driver is involved in an accident which is his or her fault or if they are involved in an accident with someone that doesn’t have sufficient insurance the ride share insurance policy may be able to make up the difference for the lack of coverage from the other driver. Most importantly, you, the injured passenger will have much more coverage and will work with an actual insurance company that is more reasonable if you are taking a ride share service and have the misfortune of being involved in an accident.
If you have been involved in any accident, please don’t hesitate to call my office for a free evaluation and explanation on how insurances and liability works.