Ridesharing in Alabama: Here’s What You Need to Know

Oct 31, 2025 - Car Accidents by Cross & Smith

More and more Alabamians rely on services like Uber and Lyft to get them where they need to go. Ridesharing can be economical and safe, and these services are often more convenient than waiting endlessly on a busy corner for an empty taxi cab. 

But what happens if you’re involved in an accident while using a rideshare service?

First, let’s talk about the safety of rideshare situations. Many people wonder about this. How safe are they? The answer is – it depends. Taxi companies, which are not considered rideshare services, are generally well vetted, as drivers and their cabs are typically regulated by the municipality’s public service commission in which they operate. Rideshare services such as Uber and Lyft may not screen their drivers to the same degree or promptly remove low-rated drivers. Here are some informative statistics based on research by World Metrics:

• Approximately 1.35 million Uber and Lyft rides occur daily in the United States
• Rideshare passengers are involved in 1.2% of all traffic fatalities in the U.S.
• The fatal crash rate for rideshare drivers is approximately 9.4 per million trips
• Approximately 65% of rideshare drivers are aged between 25-44, increasing the risk factors associated with this age group
• Around 20% of rideshare drivers admit to using their phone while driving, increasing accident risk
• Rideshare accidents often involve a higher incidence of rear-end collisions, accounting for about 40% of cases
• Nighttime rideshare trips see a 25% increase in crash involvement compared to daytime trips

If you’re injured while you’re a passenger in an Uber or Lyft, you have legal rights. You also have rights if a rideshare vehicle crashes into you or your car. Here are some pointers to keep in mind if you’re involved in a car accident while using a rideshare service.

What Should I Do After a Rideshare Accident?

After an accident in a rideshare, you should follow the steps you would after any vehicle accident. This includes calling 911, taking pictures, and collecting witness names and contact information. Whether it’s an Uber, Lyft or other rideshare service, be sure to record:

• The place and time of the accident
• The driver’s name and driver’s license, and license plate information
• The driver’s insurance information

If you are an Uber or Lyft passenger, use the app to report the accident immediately. 

Promptly seek medical attention if there is a possibility that you have been injured, no matter how minor that injury might be.

Alabama has relatively few regulations and restrictions regarding rideshare services, at least compared to other jurisdictions. Drivers must pass a criminal background check and obtain a business license from the Alabama Department of Revenue. They also must obtain a Transportation Network Company Permit from the Public Service Commission. Drivers must register their vehicle with the Alabama Department of Motor Vehicles and have it inspected annually. 

Rideshare companies such as Uber and Lyft are required to provide insurance coverage for their drivers. This includes liability coverage for bodily injury and property damage of at least $50,000 per person, $100,000 per accident, and $25,000 for property damage when the driver is on the app but hasn’t accepted a ride request. When a driver has accepted a ride request or has a passenger in the vehicle, the driver must have at least $1 million in liability coverage. Additionally, Alabama requires all rideshare drivers to carry personal auto insurance that meets the state’s minimum requirements.

Liability Issues Arising in a Rideshare Accident

Liability issues are often complex when accidents involve rideshare services. This is partly because there are often multiple parties involved – potentially the driver, the rideshare company, and other drivers. Ferreting out liability can often be complicated in these situations. In addition, Uber has a tiered insurance structure, and coverage depends upon the driver’s status as logged in, off duty, driving a passenger, or some other status. Rideshare companies also often have specialized adjusters who try to limit the liability of their drivers or of the company itself. 

Note that a rideshare company can be found liable in certain situations. For example, if their policies regarding training and background checks are deemed to be inadequate, they may be found to be fully or partially liable. 

The driver can be found liable if he or she violated traffic laws, behaved recklessly behind the wheel, or if his or her vehicle failed to comply with annual inspection requirements. 

Finally, other motorists who engaged in negligent or reckless behavior and were partially or fully at fault can also be held liable in the event of loss or injury.

If you are able to prove liability with the help of your Tuscaloosa accident attorney, there are a number of damages that are available to you. First, you can recover economic damages to cover your medical expenses, lost wages, and other out-of-pocket accident-related expenses. You can also recover so-called non-economic damages for pain and suffering, and other emotional distress caused by the crash. You are also entitled to damages for loss of companionship or consortium. These damages are often difficult to quantify. 

In certain instances, your Tuscaloosa accident attorney may seek punitive damages. Sometimes called exemplary damages in Alabama, these damages can apply to various actions and behaviors that show a conscious disregard for the injured party or parties. These actions can include:

• Reckless endangerment leading to death
• Gross negligence
• Intentional harm

Punitive damages can only be awarded by a jury in Alabama, but they are subject to judicial review.  

Contact Cross & Smith, LLC for Immediate Assistance

Here at Cross & Smith, we are driven by intense determination to make sure you receive the compensation to which you are entitled if you suffer a personal injury. We have recovered well over $100 million for our clients. Our offices are conveniently located in Birmingham and Tuscaloosa. If you or a loved one has been injured by the negligence of another party, in a rideshare accident or some other incident or accident, contact us today for a free consultation.