You were hurt in an Uber accident. The steps should be simple: file a claim, deal with the insurance company, and get your money back. Then you see something strange: the driver doesn’t own the car. There is a Hertz barcode on the window.
Things just got a lot more complicated for your case. An Uber accident attorney can help you navigate the complex liability issues when a rental car is involved.
The partnership between Uber and Hertz has put thousands of rented electric cars on the roads in California. Most of these are Teslas and Polestars. This program gives drivers who don’t have qualifying vehicles access to approved cars. It makes the driver, Uber, and Hertz all potentially liable for the accident.
After accidents with rented Uber cars, there is often conflicting information. Hertz tells victims to get in touch with Uber. Uber says to get in touch with the driver. The driver thought that the rental agreement provided full coverage.
To figure out who pays, who is responsible, and how insurance works in Uber-Hertz accidents, you need to look at the business relationship, federal law protections, and California’s Transportation Network Company rules.
What the Uber-Hertz Partnership Means
The Uber Rental Program is a big business deal that lets drivers rent cars just for rideshare work. These contracts are different from regular rental agreements because they allow drivers to use the cars for Uber trips.
How the program works
Hertz still owns all of the rental cars. Drivers rent cars every week without having to commit to owning them for a long time. As part of its goal to have zero-emission rideshare fleets, Uber is putting a lot of emphasis on electric cars, especially Teslas.
Rental agreements link the ability to use a car to meeting certain driving requirements. Drivers must make a certain number of trips or earn a certain amount of money in order to keep renting cars at the agreed-upon rates.
Why this is important for claims after an accident
In a case that would normally be a simple driver liability case, many businesses get involved. The car belongs to Hertz. The driver is in charge of it and runs it. Uber runs the platform and gives out rides.
Insurance responsibility is divided between different parties and depends on the app’s status at the time of the accident. Both companies have structured contracts that limit their responsibilities, which means that when accidents happen, each company can blame the other.
Who Owns the Car and Why It Matters to Own It
In most car accidents, the owners of the cars are responsible for accidents caused by drivers who have permission to drive their cars. Many car accident claims are based on this idea of “owner liability.”
Because of federal law protections, rental car situations have different rules for liability.
The Graves Amendment
The Graves Amendment, also known as 49 U.S.C. § 30106, protects rental car companies from being held responsible for accidents that their customers cause. This means that rental companies can’t be held responsible just because their car was in an accident.
Hertz usually can’t be sued just because a driver of one of their rental cars caused an accident by driving carelessly, like running red lights, speeding, or being distracted.
Graves Amendment protection does not apply to
Rental companies are still responsible for their own direct carelessness. Hertz could be responsible if they rented a car to a driver with a suspended license that they knew about (negligent entrustment). If Hertz knew or should have known about the Tesla’s bad brakes, bald tires, or other maintenance problems (negligent maintenance), the company could be held responsible.
If the car had problems before the rental that caused the accident, the rental company could be held liable even if the driver did nothing wrong. To win these claims, you have to show that the defect was there, that Hertz knew or should have known about it, and that the defect was a big part of what caused the accident.
Different Types of Insurance for Hertz-Uber Accidents
Because Graves Amendment protections usually stop people from suing Hertz for driver negligence, the amount of money you get depends on the rental car’s insurance and Uber’s coverage based on the app’s status.
Period 0: App is not online
Uber’s insurance doesn’t cover anything when the driver uses the rented Tesla for personal errands that have nothing to do with Uber, like grocery shopping, commuting, or driving for fun. The driver was not an Uber employee in any way.
Hertz offers the minimum amount of liability coverage required by law, unless the driver buys extra Liability Insurance Supplement (LIS) coverage when they rent the car. Many Uber drivers don’t have their own car insurance because they don’t own a car. If you don’t buy extra rental coverage, you might not have enough money to pay for injury claims.
This means that people who are seriously hurt find out that the driver who caused the accident only has California’s minimum coverage, which is $15,000 per person and $30,000 per accident for bodily injury.
Period 1: Waiting for rides
Uber offers contingent liability coverage when drivers are logged into the app and ready to accept ride requests but haven’t yet accepted a specific trip.
- $50,000 for each person who is hurt
- Up to $100,000 for each accident
- $25,000 for damage to property
This extra coverage only kicks in after all other insurance has been used. When the app is open, Hertz’s rental agreement usually says that Uber’s insurance is the main one. This means that Hertz doesn’t have to worry about coverage during this time.
$50,000 per person is often not enough for serious crashes involving Teslas, which are heavy vehicles that can cause a lot of damage. Emergency care, surgery, hospitalization, and ongoing care often cost more than this amount, leaving victims with a lot of medical bills that aren’t covered.
Active trips in Periods 2 and 3
As soon as a driver accepts a ride request, Uber’s commercial liability policy kicks in, with coverage limits of $1 million. This coverage lasts through the time the passenger is picked up (Period 2) and while they are in the car (Period 3).
Uninsured and underinsured motorist coverage also applies during active trips, up to the same $1 million limit. This protects you when other drivers don’t have enough insurance.
Hertz has very little to do with these times because Uber’s commercial policy covers most of the costs. Most of the time, $1 million in coverage is enough to cover serious injury claims without having to look for more money.
Disputes over coverage
Uber and Hertz often argue about which period was active at the time of the accident to avoid having to pay more for coverage. The difference between Period 1 ($50,000) and Period 2 ($1 million) is $950,000 in possible coverage. From the point of view of insurance companies, this is a dispute worth fighting over.
To figure out the exact status of an app, you need to look at Uber’s server logs, which show when drivers logged in, when ride requests were sent, when drivers accepted requests, and exact timestamps that match up with the times of accidents.
Can Uber Be Sued If the Car Is a Hertz Rental?
Under California Transportation Network Company rules, Uber is still responsible for the vehicle even if it is rented.
Uber says that drivers are independent contractors, but California law for TNCs makes platform companies responsible for how drivers act when the app is active.
Arguments in favor of Uber’s liability
Uber helps the Hertz rental program directly through its driver portal and marketing materials. The company makes money by making sure that drivers have the right cars to drive people around, which is how Uber makes money.
Uber often takes rental payments directly from drivers’ paychecks, which creates direct financial relationships that go beyond just providing a platform.
Uber gives the rental program a name and connects payment systems, which makes it seem like rental cars are “Uber cars.” This idea that drivers are part of Uber’s business can support claims that the company should be responsible for what drivers do while using program-facilitated rentals.
Theories of negligent onboarding
If Uber let drivers into the rental program without doing enough background checks, checking their driving records, or screening that would have found disqualifying factors, they may be liable for negligent hiring or supervision.
These theories of corporate liability go beyond questions about insurance coverage to look into whether Uber’s own actions or lack of actions helped dangerous drivers rent cars on the platform.
Is Hertz Responsible?
The Graves Amendment protects Hertz from being held responsible for driver negligence when they rent a car. But there are certain situations that could make Hertz responsible.
Careless upkeep
If the accident was caused by or made much worse by brake failures, tire blowouts, steering problems, or other mechanical problems, Hertz’s responsibility for keeping its rental cars in good shape is in doubt.
To keep their vehicles safe, commercial rental companies have to do reasonable inspections and maintenance. If there is proof that Hertz knew about problems with the cars but still rented them out, or if they didn’t do inspections that would have shown dangerous conditions, this can show negligence that is separate from the driver’s actions.
Negligent entrustment
Hertz could be liable for renting cars to drivers who they knew or should have known were dangerous. If Hertz’s screening didn’t find suspended licenses, long accident histories, or other disqualifying factors that a reasonable check would have found, negligent entrustment claims may still go forward, even though the Graves Amendment protects them.
Problems with the safety of the vehicle
If there were manufacturing problems with Teslas or other rental cars before the rental period that caused accidents, this could lead to product liability claims against Hertz as the vehicle owner and Tesla as the manufacturer.
These claims necessitate prompt evidence preservation, including the impoundment of vehicles for independent mechanical inspection prior to Hertz’s repair or disposal of damaged rentals.
Problems With Renting a Tesla
The Uber-Hertz program’s focus on electric cars makes accident cases different in some ways.
Driver not knowing how to drive an electric car
A lot of people who rent Teslas have never driven an electric car before. There are ways that Teslas drive differently than regular gas-powered cars that can lead to accidents.
When drivers let off the gas pedal, regenerative braking makes the car slow down quickly. Drivers who don’t know how to do this may misjudge how far they need to stop or panic when they need to react quickly in traffic.
Electric motors give instant torque, which makes them speed up quickly, unlike gas engines. Drivers who are trying to merge or speed up may accidentally send their cars into traffic faster than they meant to, which can lead to rear-end collisions or loss of control.
Features for autopilot and helping the driver
Tesla’s Autopilot and Full Self-Driving features make it hard for new drivers to understand what their cars can do and what they need to do as drivers. When drivers think their car drives itself, they are more likely to get distracted while driving.
When there are accidents involving Autopilot, it’s important to look into whether the drivers understood the system’s limits, whether they were paying enough attention to driving, and whether Tesla or Hertz gave enough warnings about the feature’s limits.
Responsibilities for training and instruction
If there is proof that Hertz rented high-performance electric cars to drivers who had never driven an electric car before and didn’t give them any instructions on how to use the cars’ unique handling features or driver assistance features, claims of failure to warn or instruct may not be protected by the Graves Amendment.
Rental companies are responsible for making sure that people who rent cars know how to drive them safely. Complicated EVs with features and performance that most drivers don’t know about may require more training.
What to Do After an Uber Hertz Tesla Accident
Documenting evidence at the scene of an accident and taking steps to protect it right away have a big effect on how much money you can get back in rental vehicle cases.
Proof of rental status
Take pictures of barcode stickers on windows that show Hertz identification. Write down the license plates. Hertz rental cars often have out-of-state plates or special fleet registration tags. Ask the drivers directly if the cars are rentals and if the rentals are through Uber programs. If California’s two-party consent recording laws allow it, record these conversations. If not, write down the answers.
Check the app’s status
Find out if the drivers were logged into Uber when the accidents happened. Inquire about whether they had taken rides or were waiting for ride requests. Don’t just listen to what drivers say; they might lie about the status of the app to avoid $1,000 Hertz deductibles or problems with their insurance.
If you can see the driver’s phone screen, take a picture of it showing the Uber app status. These pictures can show which insurance period was in effect at the time of the accident.
Keep track of vehicle data
Teslas keep a lot of information about how the car is driven, including speed, braking, steering, and when Autopilot is turned on. This information can show that a driver was careless or that a car had problems, but it could be lost or overwritten if it isn’t saved right away.
It is important to send legal requests to both Uber and Hertz right away to keep evidence safe before data is lost or cars are fixed.
Don’t make recorded statements
Hertz has special claims departments, often run by third-party administrators, that are trained to limit the company’s liability under Graves Amendment protections. You can use statements to these adjusters to say that drivers are offline or give victims some of the blame.
In the same way, statements to Uber’s insurance adjusters can lock in descriptions of the app’s status or the circumstances of the accident that limit coverage. Don’t make recorded statements without first getting legal advice from a personal injury lawyer.
Frequently Asked Questions About Accidents While Renting an Uber-Hertz
Does Hertz cover Uber accidents?
Hertz only offers California’s minimum liability coverage unless drivers buy extra insurance. When the Uber app is open, Uber’s insurance usually takes precedence. Hertz’s coverage may not apply or may only apply in certain situations, depending on the terms of the rental agreement.
Can I sue Hertz just because their car hit me?
No, usually not, because of the federal protections in the Graves Amendment. Hertz can be sued for their own negligence, like not keeping up with maintenance, renting to drivers who aren’t qualified, or not fixing known problems with the vehicles. However, they can’t be sued for simple driver negligence when they rent a car.
What if the driver says the app wasn’t working?
Uber’s server logs clearly show when drivers were logged in, no matter what the drivers say. You can get these records through the legal system to check the app’s status without relying on what the driver says.
Does Tesla’s vehicle data change who is responsible?
Yes. Tesla data on speed, braking, acceleration, and Autopilot engagement can help prove or disprove what drivers say happened in an accident.
What if the driver didn’t meet Uber’s driving requirements for their rental program?
Not meeting the minimum trip or earnings requirements may make the rental agreement invalid, but it doesn’t automatically change the insurance coverage for accidents that happened while the requirements weren’t met. In these cases, you need to look closely at the terms of the rental agreement and the language of the insurance policy.
Getting to Know Complicated Rental Vehicle Liability
Accidents that happen when an Uber driver is driving a Hertz rental car involve many different companies, multiple levels of insurance, and federal laws that protect people from liability.
Under California Transportation Network Company regulations, being a rental car driver doesn’t automatically protect Uber from liability. The Graves Amendment usually keeps Hertz from being responsible for a driver’s negligence, but it doesn’t stop people from suing Hertz for its own negligence.
The amount of coverage available for injuries depends on the app’s status at the time of the crash. There is a $950,000 difference between waiting for rides (Period 1) and actively transporting passengers (Period 2 or 3).
To handle these cases, you need to know about the insurance requirements for Transportation Network Companies, the limits on rental car liability under federal law, how to operate an electric vehicle, and how to keep evidence for both app activity data and vehicle operational data. If you’ve been injured in an Uber-Hertz accident, contact a car accident attorney to discuss your options.