Alabama Taxi and Rideshare Accident Lawyers

The convenience of opening an app and summoning a ride has transformed transportation across Alabama. Whether catching a ride to the airport in Birmingham, heading home after a game in Auburn or Tuscaloosa, or navigating the streets of Mobile, services like Uber and Lyft have become as ubiquitous as traditional taxis. While these services offer accessibility, they also introduce a complicated layer of risk and legal difficulty when accidents occur. A collision involving a rideshare vehicle or a taxicab is rarely as straightforward as a standard two-car crash.

The Legal Distinction Between Rideshare and Taxi Accidents

Determining liability begins with identifying the legal status of the vehicle and the driver. Alabama law treats traditional taxicabs and Transportation Network Companies (TNCs) like Uber and Lyft differently. These distinctions directly impact how a claim is filed and whose insurance is responsible for covering damages.

Traditional Taxicabs

Taxi services are generally regulated by specific municipal ordinances in cities like Montgomery, Huntsville, and Birmingham. These vehicles are typically owned by a fleet company, and the drivers may be employees or lease the vehicle. Commercial insurance policies for taxis are mandatory, but the minimum coverage limits can vary depending on local laws. In a taxi accident, the fleet owner is often liable for the driver’s negligence under the doctrine of respondeat superior, provided the driver was an employee acting within the scope of their duties.

Rideshare Companies (TNCs)

Uber and Lyft operate under a different legal framework. They classify their drivers as independent contractors rather than employees. This classification is a deliberate legal strategy used to distance the corporate entity from the actions of individual drivers. When a rideshare driver causes a crash, the company will almost always argue that they are not directly responsible for the driver’s behavior. Instead of a straightforward employer-employee liability claim, the case hinges on a complex, tiered insurance structure that depends entirely on the driver’s status at the precise second the impact occurred.

The Tiered Insurance Structure of Rideshare Accidents

For victims of rideshare accidents, the most critical factor is the status of the driver’s app at the time of the collision. Uber and Lyft provide supplemental insurance coverage, but it is not active at all times. The coverage limits shift dramatically based on three distinct periods.

Period 0: App Is Off
If the driver is not logged into the app, the rideshare company provides zero coverage. The driver is considered a private citizen driving their personal vehicle. Any claims must be made against the driver’s personal auto insurance policy. However, many personal policies have exclusions for commercial use, which can lead to a denial of coverage if the insurer suspects the driver was working.

Period 1: App Is On, Waiting for a Ride
The driver is logged in and available but has not yet accepted a ride request. During this phase, the rideshare company typically provides limited liability coverage. This usually includes:

• $50,000 for bodily injury per person
• $100,000 for bodily injury per accident
• $25,000 for property damage
  This coverage only kicks in if the driver’s personal insurance denies the claim or is exhausted. It generally does not cover damage to the rideshare driver’s own car or their injuries.

Period 2: En Route to Pick Up
Once a driver accepts a ride request and is on the way to the passenger, the coverage limits increase significantly. The commercial insurance policy typically provides up to $1 million in third-party liability coverage. This covers injuries to other drivers, pedestrians, or cyclists hit by the rideshare vehicle.

Period 3: Passenger on Board
From the moment the passenger enters the vehicle until they exit, the $1 million liability coverage remains in effect. Additionally, this period usually includes uninsured/underinsured motorist coverage. This is vital if the rideshare vehicle is hit by another driver who has no insurance or insufficient coverage to pay for the passenger’s medical bills.

Common Causes of Accidents Involving Vehicles for Hire

While rideshare and taxi drivers are professionals who spend hours on the road, the very nature of their work introduces unique hazards that increase the risk of collision. The pressure to maximize fares often encourages behaviors that jeopardize safety.

App-Related Distraction
Rideshare drivers rely entirely on their smartphones to work. They must constantly monitor the app to accept rides, check GPS navigation, and communicate with passengers. This creates a high-risk environment where the driver’s eyes are frequently off the road. A split-second glance at a notification can lead to a rear-end collision or a failure to yield.

Fatigue and Deadheading
Many drivers work long shifts or use ridesharing as a second job after a full day of work elsewhere. Driver fatigue impairs reaction times and judgment similar to alcohol intoxication. Furthermore, drivers often spend time “deadheading”—driving around aimlessly while waiting for a fare—which increases traffic congestion and the statistical likelihood of an accident.

Unfamiliar Areas
Unlike traditional taxi drivers who may know a specific city grid intimately, rideshare drivers often travel long distances to unfamiliar neighborhoods or cities. A driver following a GPS blindly may make sudden, erratic turns, drive the wrong way down one-way streets, or stop abruptly in unsafe locations to pick up or drop off passengers.

Negligent Hiring and Retention
While TNCs perform background checks, these checks are not infallible. Drivers with histories of reckless driving, DUI, or violence sometimes slip through the cracks. If a rideshare company allows a driver with a dangerous record to remain on the platform, the company itself could potentially be liable for negligent hiring or retention.

Rights of Injured Passengers

Passengers in a taxi, Uber, or Lyft are perhaps the most vulnerable parties in these scenarios. They have no control over the vehicle and rarely wear seatbelts in the back seat, which can exacerbate injuries. However, passengers are also in a strong legal position regarding liability. It is almost impossible for a passenger to be at fault for a crash.

If you are injured as a passenger, you may have claims against:

• The Host Driver: If your driver caused the accident through negligence.
• The Other Driver: If another vehicle hit your rideshare car.
• The Rideshare Company: Utilizing the $1 million policy if the host driver was at fault.
• Uninsured Motorist Coverage: If the at-fault driver (whether your driver or the other car) lacks insurance.

The primary challenge for passengers is not proving they are innocent, but rather dealing with multiple insurance adjusters who will point fingers at one another to delay payment.

Third-Party Victims: Pedestrians and Other Motorists

The risk extends beyond those inside the vehicle. Pedestrians in busy areas like downtown Mobile or the University of Alabama campus are frequently at risk from rideshare drivers scanning for passengers rather than watching the crosswalk.

For a driver or pedestrian hit by a rideshare vehicle, the key to compensation lies in proving the driver’s status. If the driver had the app off, you are limited to their personal policy limits, which in Alabama can be as low as $25,000 per person. If the app was on, the corporate policy may apply. Preserving electronic evidence immediately is vital to proving the app was active. Attorneys can send preservation letters to the TNC to ensure this digital log is not deleted or altered.

Types of Injuries Sustained in Commercial Vehicle Crashes

The force of a collision involving a sedan or SUV can result in life-altering physical trauma. Because rideshare passengers often do not wear seatbelts, they can be thrown into the divider, the seat in front of them, or even ejected from the vehicle.

• Traumatic Brain Injuries (TBIs): Concussions and severe brain trauma can occur even without a direct blow to the head due to the violent whipping motion of the crash.
• Spinal Cord Damage: Herniated discs, fractured vertebrae, and nerve damage can lead to chronic pain, loss of mobility, or permanent paralysis.
• Facial Injuries: Impact with the partition in a taxi or the seat back in a rideshare vehicle can cause severe lacerations, broken facial bones, and dental damage.
• Orthopedic Fractures: Broken legs, arms, ribs, and pelvic fractures are common, often requiring surgery and physical therapy.
• Psychological Trauma: The emotional impact of a severe crash can lead to PTSD, anxiety, and a fear of driving, which requires professional mental health treatment.

Recoverable Damages in Alabama

Alabama law permits victims of negligence to seek compensation for the full extent of their losses. These damages are categorized into economic and non-economic losses.

• Economic Damages: These are verifiable financial losses. They include current and future medical bills, emergency room costs, rehabilitation expenses, lost wages from time off work, and loss of future earning capacity if the victim cannot return to their previous job.
• Non-Economic Damages: These cover intangible losses such as physical pain and suffering, mental anguish, emotional distress, permanent scarring, and loss of enjoyment of life.
• Punitive Damages: In cases of extreme recklessness—such as a driver operating under the influence of drugs or alcohol—the court may award punitive damages. These are designed not to compensate the victim, but to punish the wrongdoer and deter similar conduct.

The Challenge of Contributory Negligence in Alabama

Pursuing a claim in Alabama requires navigating one of the strictest legal doctrines in the country: pure contributory negligence. Under this rule, if an injured party is found to be even one percent at fault for the accident, they are completely barred from recovering any compensation.

Insurance adjusters for Uber, Lyft, and taxi companies are well-trained in leveraging this law. They may attempt to argue that:

• A pedestrian was slightly outside the crosswalk.
• Another driver was speeding slightly, even if the rideshare driver ran a red light.
• A passenger was distracting the driver.

Because of this severe standard, it is imperative to have legal representation that can build a case demonstrating the defendant was 100 percent responsible for the crash. Allowing an insurance adjuster to pin a fraction of the blame on you can destroy your entire claim.

Immediate Steps to Take After an Accident

The moments following a crash are chaotic, but the actions taken can significantly influence the outcome of a future legal claim.

• Call Law Enforcement: A police report is an official record of the incident. Ensure the officer knows the driver was working as a rideshare or taxi operator at the time.
• Seek Medical Attention: Adrenaline can mask pain. Go to the emergency room or a doctor immediately to document injuries. A gap in medical treatment gives insurance companies a reason to devalue the claim.
• Screenshots and Digital Evidence: If you are a passenger, take a screenshot of the ride receipt and the trip status in the app. If you are a third party, try to photograph the driver’s windshield to see if trade dress (Uber/Lyft stickers) is visible.
• Gather Witness Info: Independent witnesses are vital for disputing liability.
• Do Not Give Recorded Statements: Insurance representatives from the TNC may call quickly. Politely decline to speak until you have consulted with an attorney.

Why Evidence Preservation Is Time-Sensitive

In accidents involving app-based transport, digital evidence is the smoking gun. This includes GPS data, ride logs, speed records, and app activity logs. However, this data is held exclusively by the rideshare company. Without a formal legal demand to preserve this evidence, it can be overwritten or lost.

Furthermore, commercial vehicles and taxis may be equipped with dashcams or “black box” event data recorders. This equipment records speed, braking patterns, and throttle position seconds before impact. Securing this physical and digital evidence immediately is often the difference between a successful claim and a denial.

Contact Haygood, Cleveland, Pierce, Thompson & Short, LLP

The legal team at Haygood, Cleveland, Pierce, Thompson & Short, LLP understands the tactics used by large insurance carriers and transportation companies to avoid liability. We are dedicated to investigating the facts, securing vital electronic evidence, and fighting against unfair contributory negligence allegations. If you or a loved one has been injured in a taxi or rideshare accident in Alabama, contact us today at 334-560-1936 to schedule a consultation. We will review your case and help you determine the best path toward securing the compensation you deserve.