How South Dakota Rideshare Laws May Affect Your Personal Injury Case Against Uber or Lyft
Many Sioux Falls residents rely on rideshare services like Uber or Lyft to commute or conduct their daily errands. Ordering a rideshare is quick and convenient as it requires nothing more than your phone. But what happens if you are injured as a passenger in a rideshare vehicle, either through the negligence of the driver or even a deliberate criminal act such as assault?
South Dakota’s Driver Screening and Insurance Requirements for TNCs
State and local governments do not regulate Uber and Lyft as traditional taxicab or limousine operators. Instead, South Dakota law classifies these types of online rideshare services as “transportation network companies” or TNCs. Even though TNCs rely almost exclusively on independent contractors to provide rides (i.e., individual drivers using their own cars), these companies must still follow strict rules when it comes to screening drivers and providing insurance coverage.
Among other requirements, Uber and Lyft must conduct a local and national criminal background check on anyone who applies to be a driver. This includes searching for the applicant on the national sex offender registry as well as obtaining a copy of their driving record. Indeed, certain individuals are disqualified from driving for a TNC based on their prior history of criminal convictions or traffic violations. And once drivers are screened and approved to accept rides, the TNC must enforce a “zero tolerance policy for drug and alcohol use.” In other words, Uber or Lyft cannot turn a blind eye if a driver using their app is suspected of driving under the influence of drugs or alcohol.
A TNC may be liable for negligent hiring or negligent supervision if they fail to follow South Dakota regulations and an innocent person suffers harm as a result. For example, if a TNC allows someone with a disqualifying criminal conviction to drive, and that driver subsequently assaults a passenger, the victim would have a viable personal injury claim against the TNC.
With respect to insurance, a TNC must provide commercial liability coverage while a driver is either logged in to the company’s app and able to accept rides, or while in the process of conducting a pre-arranged ride. The actual amount of coverage depends on the situation. For instance, let’s say an Uber driver is logged into the app but has not yet accepted a ride. That driver that negligently strikes and injures a pedestrian while driving around. Uber’s commercial insurance must provide at least $50,000 in bodily injury coverage to pay for the victim’s damages. However, if that same Uber driver is “engaged in a prearranged ride” when an accident occurs, the company must then provide at least $1 million in liability coverage.
Contact a Sioux Falls Uber Accident Lawyer Today
Sorting out compensation from an accidental or intentional injury arising from a rideshare vehicle presents many complex legal questions. Our experienced Sioux Falls accident lawyers can assist you in navigating the rules and holding TNCs and drivers accountable for their actions. Contact Hoy Law today at (605) 334-8900 to schedule a free consultation.
Source:
sdlegislature.gov/Statutes/32-40
