Chicago ranks high on the list of cities that utilize rideshare services like Uber, Lyft, and taxis. A study conducted over a two-month period concluded that those that live in and visit Chicago take an average of 286,000 trips per day over the course of the study. That’s over 17 million trips spread over a two-month period! As more people adopt ridesharing services, it’s important to stay informed about local and state laws surrounding ridesharing.
Rideshare services have specific legislation enacted by the city of Chicago and state of Illinois that differentiate them from taxi services. The main thing that sets the two services apart is that rideshare drivers are classified as independent contractors. They drive their own cars, have their own insurance, and take ownership of responsibility in the case of an accident. On the other hand, taxi drivers are employees of a taxi service who provides them vehicles to use. Rideshares are classified as Transportation Network Companies (TNCs), using phone applications and digital networking to reach their customers.
Rideshare Laws in Chicago
TNCs have their own set of laws that they and their drivers must follow in order to operate in Chicago. Many of these laws, although active as of right now, are set to be repealed on September 1, 2028.
Insurance Requirements
New laws require a TNC to comply with insurance reliability requirements separate from the insurance of their drivers. The TNC’s liability coverage must include $50,000 for death or personal injury per person, $100,000 for personal injury or death per accident, and $25,000 coverage for property damage. This insurance starts the moment a driver logs in to start driving for the service and ends when the transaction or ride is completed. The TNC is responsible when the driver’s own insurance lapses or becomes inactive. Other insurance requirements include uninsured motorist coverage and more.
Driver Requirements
Rideshare drivers are required to submit an application to the TNC or through a third party on behalf of the TNC. The application must include the driver’s full legal name, age, address, social security number, and other personal identifying information. It must also include information such as vehicle registration, insurance information, driving records, and driver’s license number. The driver is required to undergo a local and national background check and cannot drive for the TNC if they have more than three moving violations in the past three years, certain criminal convictions in the last seven years, an invalid driver’s license or registration, or missing insurance information. No drivers under the age of 19 are currently allowed.
Safety Policy
TNCs are required to follow a zero tolerance policy regarding the use of drugs or alcohol while the driver is working. The policy must be readily available for drivers to view including instructions for reporting violations. If a driver is accused of violating the policy, the TNC must immediately suspend the driver and conduct an investigation.
Operational Requirements
Rideshare services are allowed to charge a fare for their services, but the fare must be available to customers. The passengers must receive an estimate of the cost of the service before the ride begins, and must receive a receipt in a timely manner once the ride is complete.
What to Do if You’re a Passenger in a Rideshare Accident
Do you believe a rideshare service you use violated any of the laws listed above? Were you injured as a passenger in a rideshare accident? Saperstein Law Group, P.C. specializes in defending victims of rideshare accidents. We stay updated on all laws and rules relating to rideshare services in and around the Chicago area. Contact us today to share the details of your case with a member of our law team and to receive a free case evaluation.