Car subscription services have grown in popularity in recent years. They offer a flexible alternative to leasing or buying by letting users pay a monthly fee to access a vehicle, with insurance, maintenance, and roadside assistance often included. But when a crash happens, many drivers are unsure how liability is handled. As a Charlotte, NC car accident lawyer, we’ve received more questions about how these services respond when users are involved in a wreck.
At The Layton Law Firm, we’ve spent over 20 years working with accident victims in North Carolina. We’re also proud to be rated a Neighborhood Favorite on Nextdoor for our commitment to clear guidance and solid results.
What Car Subscription Services Usually Cover
Most subscription services include insurance coverage as part of the monthly fee. However, the terms vary. Some services offer full coverage with low deductibles, while others only provide state-minimum liability insurance. It’s important to read the agreement closely, especially sections on insurance, liability, and what happens in the event of an accident. You should ask a lawyer to review the information beforehand to understand how you might be liable.
In general, if a driver is involved in an at-fault crash, they may still be responsible for paying the deductible and for any damages not covered under the subscription’s policy. If the driver wasn’t at fault, the service may pursue a claim against the other driver’s insurance. Either way, users should report the accident to both the subscription provider and the authorities immediately.
Who Is Liable In Different Situations
Liability depends on who caused the accident and whether the subscriber violated the service terms. Here are some common scenarios:
- At-fault driver is the subscriber: The subscription’s insurance may cover damages, but the subscriber could still face increased costs, such as a deductible or surcharges.
- At-fault driver is another party: The subscription service or the subscriber may file a claim against the other driver’s insurer.
- Subscriber violates terms: If someone else was driving the car without permission or if the driver was impaired or reckless, the subscription service may refuse to cover damages.
We’ve seen cases where misunderstanding the terms of the subscription caused unnecessary legal and financial problems. That’s why reviewing the policy and knowing your responsibilities before using the vehicle is important. After all, insurance companies and car service companies do not want to cover the accidents because they do not want to pay for them; insurance companies spend a lot of time calculating what will be owed and they hope they will not be the ones to owe it. A good example is someone that used a car subscription service for work such as turning it into an Uber, which normally violates the contract — it also complicates things as it turns it into a worker’s compensation case versus a traditional personal injury case.
What To Look For In A Subscription Agreement
Before signing up, drivers should carefully check the terms related to:
- Insurance limits and deductibles
- Responsibility for collision damage
- Authorized drivers
- What happens if the car is totaled or stolen
- Steps to take after an accident
Some agreements may also restrict the use of the vehicle across state lines or for commercial purposes like ride-sharing. Violating these terms can void coverage and shift liability back to the user. This is yet another example of why it is so important to review the contract beforehand.
If you’ve been in an accident while using a car subscription service and aren’t sure what your next steps should be, we’re here to help. At The Layton Law Firm, we bring over 20 years of experience and a practical approach to personal injury claims. Call us today to discuss your situation with a legal team committed to protecting your rights.