Can I Sue My Uber Driver if I Was in an Accident in Toronto?

With the rise of rideshare services like Uber in Toronto and other major cities, accidents involving these vehicles have become more common. When you’re involved in an accident as an Uber passenger, understanding your rights and knowing whether you can sue the driver for damages is crucial. 

In this blog, Michael Connolly will explore the steps you can take, factors to consider, and the legal aspects of suing an Uber driver after an accident in Toronto.

What is Uber Liability Coverage?

Uber has a liability coverage system in place, which is designed to protect Uber from lawsuits but which also provides funding for claims of compensation advanced by those who have been wrongfully injured in accident caused by an Uber driver. If successful, the claim for compensation helps those injured obtain funding for treatment to help them heal from their injuries. 

At the time of writing this blog, Economical Insurance is the underwriter or insurer for Uber drivers. Economical divides its coverage system into periods, and the amount of insurance that Uber provides to the driver (and against which an injured person can claim) depends on the period in which the person was injured in an accident. This coverage is as follows:

• Offline: When an Uber driver causes an accident and his or she is not yet logged into the rideshare app, Uber’s insurance company will not provide coverage. 

• Period 1 “Ready to Ride”: When an Uber driver gets into an accident while he or she is logged into the app but has not accepted a ride, Uber will provide liability coverage for up to $1 million, along with standard accident benefits coverage, and Contingent Collision and Comprehensive Coverage.

• Period 2 “Request Accepted”: When an Uber driver causes an accident after accepting a ride and is on the way to pick up the passenger, liability coverage increases to $2 million. 

• Period 3 “In Transit”: When an Uber driver gets into a car accident while the passenger is in his or her car, it falls into Period 3, wherein Uber will provide the injured party with up to $1 million in liability coverage, as well as limited coverage for damage to the driver’s car and uninsured motorists’ coverage.

Click here to learn more about what insurance coverage Uber drivers carry. 

This means if you were injured during a trip, Uber’s insurance company may respond with: 

• Accident benefits: if you do not have your own automobile insurance, you may file an accident benefits claim with Uber’s insurance company

• Liability coverage: depending on at what stage in the process the accident occurred, and depending on whether you commence a lawsuit against the Uber driver, Uber’s insurance company will pay for Uber’s lawyer and pay any settlements or verdicts you reach against the Uber driver. 

Your Right to Sue a Rideshare Company

The law with respect to suing the Uber is not as well established. However, application of foundational case law suggests these companies may owe a duty of care to passengers who use their services.

To establish whether a ridesharing company such as Uber owes a duty of care to their passengers, a plaintiff must persuade the court that the nature of the relationship satisfies the test for a duty of care as set out by the Supreme Court of Canada in Cooper v Hobart (2001 SCC 79). This test has two stages:

• The court will consider whether there is a prima facie duty of care, which turns on both proximity and reasonable foreseeability of the harm; and

• The court will consider whether there are residual policy reasons for rejecting that duty of care based on “the effect of recognizing a duty of care on other legal obligations, the legal system and society more generally.”

Can You Sue Your Uber Driver?

Yes, you can sue your Uber driver if their negligence led to the accident. Some common examples of negligence include:

• Distracted driving
• Speeding or reckless driving
• Driving under the influence of drugs or alcohol

If your injuries are severe, a lawsuit might be warranted. Before you start a lawsuit, it is encouraged you: 

1. Contact a Personal Injury Lawyer: Our Rideshare accident lawyers specialize in rideshare accidents, and we can help you navigate the complexities of this type of case.
2. Gather Evidence: Collect accident reports, photos, witness statements, and medical records to support your case.
3. Review the Driver’s and Uber’s Insurance: Determine the specifics of the coverage, including limits, to understand what you may claim.

Factors to Consider Before Suing

There are a few key factors to keep in mind before deciding to sue your Uber driver:

• Severity of Injuries: all car accidents in Ontario are subject to certain restrictions that exist to limit your rights to sue. However, if your injuries are more severe and require long term medical expenses or result in lost wages, a lawsuit may be necessary to secure your financial future.
• Insurance Coverage Limits: Depending on at what stage of the ridesharing process the accident occurs, Uber’s insurance policy covers its drivers for up to $2 million in damages, which means it is obligated to pay you up to $2 million in damages if you prove your case. If these policy limits do not adequately meet the value of your claim, you remain able to recover the remaining amounts from the Uber driver directly. 
• Evidence of Negligence: To have a successful lawsuit, you’ll need to prove the Uber driver’s negligence directly caused the accident and your injuries. Common causes of driver negligence include speeding, distracted driving, or violating traffic laws.
• Multiple Parties: Depending on the circumstances, you may be able to sue multiple parties, such as another driver involved in the accident or Uber itself if there’s evidence of negligence on their part (e.g., inadequate driver screening).

Applying for Accident Benefits

To start, ensure you apply for accident benefits. If you have your own auto insurance policy, you should apply through that policy. If you don’t have personal auto insurance, you can apply for accident benefits through the Uber driver’s insurance.

However, keep in mind that if the rideshare driver does not have commercial insurance or hasn’t informed their insurer about their rideshare activity, the insurance company may deny coverage. 

If this happens, you should apply for accident benefits under the policy of any other vehicle involved in the accident. If no other vehicle is involved or if that vehicle is uninsured, you can seek compensation through the Motor Vehicle Accident Claims Fund.

What to Do After an Accident in an Uber

If you’re involved in an accident while riding in an Uber, you should follow these steps:

1. Ensure Safety: Move to a safe location and call emergency services if necessary.
2. Report the Accident: Notify Uber through their app and also report the accident to the police.
3. Collect Information: Gather details from the Uber driver, other drivers involved, and any witnesses.
4. Document the Scene: Take photos and videos of the accident scene and note any potential witnesses.
5. Seek Medical Attention: Even if you feel fine, see a doctor. Injuries aren’t always immediately apparent, and medical documentation is essential for any claim.
6. Contact a Lawyer: If you’re considering legal action, speak with a personal injury lawyer to understand your options.

Frequently Asked Questions

1. Can I sue if another driver caused the accident?
   Yes, if another driver is at fault, you can commence a lawsuit claim against them to claim compensation for your injuries, in addition to receiving accident benefits through your own automobile insurance company or through Uber’s insurance company. 
2. What happens if the Uber driver has no personal insurance?
   The Compulsory Automobile Insurance Act, R.S.O. 100, c. C.25 obligates all drivers in Ontario to carry automobile insurance. Uber drivers therefore are required by law to have their own automobile insurance, in addition to Uber’s insurance, which, as set out above, is only triggered once a passenger is picked up by the Uber driver. Therefore, all passengers in Ubers who are injured should have accident benefits insurance and will have a claim against the Uber driver backed by Uber’s insurance. 
3. Can I sue Uber directly?
   You may be able to sue Uber directly; however, your lawsuit would need to set out specific allegations of negligence against Uber. It is advised that you contact a personal injury lawyer if you believe you have a claim against Uber. 
4. Can I claim emotional distress?
   Yes, Ontario allows for claims of emotional distress, but these claims may be subject to certain legal standards and may be limited by caps.
5. What if I was partially at fault?
   Ontario’s contributory negligence rule may apply to any lawsuits you commence against Uber or Ubert drivers. This means that, when you start a lawsuit, your own possible contribution to how the accident or your injuries arose may be used against you to reduce your claim. 

Rideshare Accident Lawyer Toronto

If you were injured in an Uber accident in Toronto, we encourage you to contact our offices today, as our rideshare accident lawyers will be able to navigate you through your various claims for compensation. 

**Please note that the contents of this blog should not be relied upon as legal advice or medical advice, but only for information and reference purposes. You should always follow the advice of your doctors and treatment providers with respect to your diagnoses and what health and medical steps you should take to best recover. If you wish to obtain legal advice, please contact our office and arrange for a free consultation with one of our lawyers.**