Insurance Coverage in Rideshare Accidents

TL;DR:
Insurance coverage in rideshare accidents depends on what the driver was doing at the time of the crash—offline, waiting for a ride, or actively transporting a passenger. Uber and Lyft provide different levels of insurance based on the driver’s app status, which can make these cases confusing. Understanding who pays in a rideshare accident is key to protecting yourself after an Uber or Lyft crash.

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Insurance Coverage in Rideshare Accidents Uber and Lyft Insurance Coverage Explained Can You Sue a Rideshare Company? What to Do After a Rideshare Accident FAQ

Insurance Coverage in Rideshare Accidents

Most people searching for insurance coverage in rideshare accidents are trying to figure out one thing: who’s responsible for paying after a crash. Unlike traditional car accidents, insurance in Uber and Lyft accidents depends heavily on timing, app status, and which insurance policy applies first.

Coverage in rideshare accidents changes depending on whether the rideshare driver was logged out of the app, logged in but waiting for a ride request, or actively picking up or transporting a passenger. Each stage triggers different rideshare insurance policies, which can significantly affect the amount of compensation available after an accident.

In this article, we’ll break it down by explaining how insurance coverage in rideshare accidents works, and who pays depending on what the Uber or Lyft driver was doing at the time of the crash.

Uber and Lyft Insurance Coverage Explained

Driver Not Logged Into the App

If the driver isn’t logged into Uber or Lyft, the rideshare company provides no coverage. In that situation, the driver’s personal auto insurance applies—just like any other car accident.

Driver Logged In but Waiting for a Ride

When a driver is logged into the app and waiting for a request, Uber insurance coverage and Lyft insurance coverage provide limited liability coverage if the driver causes a crash. This coverage is typically secondary and may only apply if the driver’s personal insurance doesn’t fully cover the damages. Standard limits in California are:

$50,000 per person for bodily injury
$100,000 per accident for bodily injury
$25,000–$30,000 for property damage

Driver Actively Picking Up or Transporting a Passenger

Once a ride is accepted and until the passenger exits the vehicle, rideshare insurance accident coverage is at its highest level. During this phase, Uber and Lyft generally provide:

$1,000,000 per accident for bodily injury and property damage caused by the rideshare driver
Uninsured/underinsured motorist coverage
Contingent collision coverage

So, who pays in a rideshare accident? It depends on who caused the crash and which phase the driver was in. If the Uber or Lyft driver caused the accident, the rideshare company’s insurance may apply. However, if another driver caused the crash, that driver’s insurance is usually primary. And if coverage limits aren’t enough, additional policies may come into play. Because multiple insurance companies may be involved, these claims are often more complex and time-consuming than standard car accident cases.

Can You Sue a Rideshare Company?

While you can sue Uber or Lyft directly after an accident, it really depends on the situation. Because rideshare drivers are typically classified as independent contractors, rideshare companies are often shielded from direct liability.

That said, injured passengers and drivers may still recover compensation through:

Uber or Lyft’s insurance policies
A negligent third-party driver’s insurance
Other available coverage options

Additionally, rideshare drivers also have protections. Lyft and Uber drivers’ rights after a car accident may include access to rideshare insurance benefits when logged into the app, as well as the right to pursue claims against other at-fault drivers.

Drivers may be able to recover compensation for medical expenses, pain and suffering, lost income, and vehicle damage. Understanding which policy applies can make a major difference in a driver’s financial recovery.

What to Do After a Rideshare Accident

If you’re involved in a rideshare accident:

Call 911 and seek medical attention
Take photos and document the scene
Exchange insurance information
Report the accident through the Uber or Lyft app
Avoid giving recorded statements without legal advice

If you’ve been involved in a rideshare accident, consulting with a rideshare accident attorney in North Hollywood or a personal injury attorney in Los Angeles can help you better understand your options.

Since 1998, our personal injury law firm in North Hollywood has helped thousands of clients across Southern California navigate complex injury claims. Contact Yepremyan Law Firm today to schedule your free case evaluation. We handle all personal injury cases on a contingency basis, meaning you pay nothing unless your case is successfully settled or won.

Frequently Asked Questions

Who pays in a rideshare accident?

It depends on whether the driver was offline, waiting for a ride, or actively transporting a passenger at the time of the crash.

What insurance applies in Uber and Lyft accidents?

Coverage may include the driver’s personal insurance, Uber insurance coverage, Lyft insurance coverage, or a third-party driver’s policy.

Can passengers file claims after a rideshare accident?

Yes. Passengers are typically covered under Uber or Lyft’s insurance during an active ride. 

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