Car crashes are common, especially in the automobile-dependent American culture. It’s one of the reasons why drivers are required to hold a valid insurance policy. Typically, when a driver is at fault in an accident, their insurance policy covers damage to property and physical injuries that may have been suffered by the policy holder and any other involved drivers.
However, the rise of ride sharing companies is adding an interesting wrinkle to this model. One of these companies is Lyft, an app based service provider that’s found in dozens of cities. It’s like a friendlier alternative to taxi services with participating vehicles sporting a fuzzy, bright pink moustache in order to be identifiable. Users download the app, then request a pickup. A nearby driver is summoned, and arrives within minutes to take users to their destination. It sounds straightforward enough, but what happens when things go disastrously wrong?
On November 1, 2014, Lyft driver Shanti Adhikari was providing a ride for Sacramento resident Shane Holland and his boyfriend. It was about 1:25 in the morning. The rain was pouring down. It’s easy to imagine that visibility was poor. Adhikari was driving his Toyota Camry at about 65 miles per hour when he spotted a stalled Kia in the middle of the freeway. He swerved to avoid it, colliding with a tree before spinning around and colliding with another tree. Passenger Shane Holland was killed in the crash.
Officials are still trying to figure out who is at fault in the incident. The Kia was first struck by a car that fled the scene. While Adhikari was able to swerve and miss the Kia, other vehicles hit it subsequently. Was Adhikari responsible for the crash that killed his passenger? If so, then Lyft’s $1 million insurance policy should take responsibility for any damages. However, the highway patrol may find that the first vehicle that struck the Kia may bear ultimate responsibility. If that driver can be found, their insurance may be forced to pay. However, it is more likely that Lyft’s uninsured/underinsured liability coverage will be called upon instead.
With usage of ridesharing services like Lyft and Uber increasing daily, the courts will be called upon to answer more precedent setting questions like the ones to be presented in this case.