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New law protects consumers who use ride-sharing companies

Ride-sharing companies such as Uber and Lyft have exploded in popularity in Allenhurst and other New Jersey towns over the last few years. Whether it is a trip to the airport or a lift to the bar, these companies offer you an affordable way to get where you need to go. At Escandon, Fernicola, Anderson & Covelli, we understand that safety is important to you no matter who is behind the wheel.

In the past, if your driver, who operates as an independent contractor, were to get into an accident with you in the car, it was not immediately clear whose insurance would be liable for covering your injuries. A new law was recently signed by Gov. Chris Christie that aims to clarify liability for these types of accidents, reports NJ.com.

The law makes it so that if the driver of the vehicle does not have enough insurance or is completely uninsured, the company’s insurance will cover the accident. The legislation also ensures that passengers who are injured in an accident while riding with a Lyft or Uber driver will be covered for medical bills up to $1.5 million. This is the same standard that limousine companies must have in New Jersey. The law also covers a few other areas, such as requiring background checks for drivers and the reporting of trip data to the state.

Being injured in a car accident can result in large medical bills and lost wages, and insurance companies are not always cooperative. For more information on motor vehicle crashes, please visit our web page.

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