When Taxis, Uber, and Lyft Are Liable for Fatalities and Catastrophic Injuries

 Posted on January 15, 2026 in Car Accidents

Crashes involving taxis and rideshare vehicles can cause severe injuries or death. Sometimes, the companies can be held legally responsible. However, liability depends on the facts of each case. What matters most is who caused the car accident and what the driver was doing at the time the crash occurred.

Rideshare use continues to grow. In 2025, Uber reported having about 8.8 million drivers and couriers worldwide. With so many rideshare vehicles on the road each day, serious crashes are more likely to raise complex legal questions.

As of 2026, Illinois courts still apply standard negligence rules to auto accidents of any kind, but they also account for the unique issues involved in taxi and rideshare cases. If your family has been affected, our Chicago, IL car accident lawyers can help determine who may be responsible.

When Can Taxis, Uber, or Lyft Be Held Responsible for a Crash in Illinois?

Taxi and rideshare companies may be responsible when their drivers cause a crash while working. Liability depends on whether the driver was actively on the job at the time.

Taxi drivers are often employees. This can make the taxi company responsible for the driver’s actions. Uber and Lyft drivers are usually independent contractors, but that does not always protect the company from liability.

How Does Driver Status Affect Liability in Uber and Lyft Accidents?

In rideshare cases, liability depends on what the driver was doing in the app at the time of the crash. Uber and Lyft insurance coverage changes based on the driver’s activity:

• Logged out of the app: The driver is using the car for personal reasons. Only the driver’s personal auto insurance usually applies.

• Logged into the app but waiting for a ride: Limited rideshare insurance may apply, along with the driver’s personal policy.

• Driving to pick up a passenger: Uber or Lyft usually provides higher liability coverage at this stage.

• Transporting a passenger: The highest level of rideshare insurance typically applies during an active trip.

Which stage applies can determine whether the driver, the rideshare company, or both may be financially responsible for injuries or fatalities.

What Insurance Coverage Applies to Taxis, Uber, and Lyft in Illinois?

Illinois requires higher insurance limits for commercial drivers and rideshare companies. These policies are meant to cover serious injuries and deaths.

Under 625 ILCS 57/10, Uber and Lyft must provide primary insurance during certain parts of a trip. Taxi companies must also carry commercial insurance. Determining which policy applies often requires reviewing app data and insurance records.

Who Else May Be Liable for Fatal or Catastrophic Injuries in a Car Accident With a Taxi, Uber, or Lyft Driver?

Sometimes, more than one party is responsible for a car accident. Liability is not always limited to the driver or the rideshare company.

Other parties may include:

• Another driver who caused the crash

• A vehicle owner who allowed an unsafe driver to use the car

• A maintenance company that failed to fix a safety issue

• A manufacturer if a defect contributed to the crash

Illinois law allows fault to be shared based on each party’s role.

Why Are Fatal and Catastrophic Rideshare Cases More Complicated?

Fatal and catastrophic injury cases involve losses that go far beyond short-term medical care. These injuries often require lifelong treatment, ongoing support, or major changes to daily living. Families may face long-term financial strain, emotional trauma, and the loss of independence or companionship.

Because the consequences are so serious, these cases are examined closely by insurers and defense teams. They often involve detailed crash analysis, expert opinions, and careful review of medical records. Early steps matter, since delays can make it harder to prove what happened and who should be held responsible.

What Compensation May Be Available in Taxi and Rideshare Accident Cases?

Victims and families may be able to seek compensation for both financial and personal losses caused by the crash. These losses can include medical care, future treatment needs, and the impact the injury has on daily life. Catastrophic injury cases may also involve future medical care and lost earning ability.

In fatal cases, wrongful death claims may apply. Under the Illinois Wrongful Death Act, 740 ILCS 180/2, families may seek damages for loss of support and companionship.

Schedule a Free Consultation With Our Chicago, IL Rideshare Accident Attorneys

If your family has been affected by a fatal or catastrophic crash involving a taxi, Uber, or Lyft, Tomasik Kotin Kasserman, LLC can help you understand your options. Our firm has recovered hundreds of millions of dollars in verdicts and settlements. We also bring more than 150 years of combined experience to serious injury and wrongful death cases.

Call 312-605-8800 to schedule a free consultation with our Chicago, IL car accident lawyers, and learn how we can help you pursue accountability and financial recovery.