Who Pays if I’m in an Accident in an Uber or Lyft?

After a rideshare crash, one aspect will determine almost everything: what was the driver doing in the app at the exact moment of impact? That fact alone decides whose insurance policy applies, how much coverage is available, and whom you can make a claim against.

Continue reading our discussion to learn how Lyft and Uber insurance work in everyday language and the changes that affect drivers, passengers, and pedestrians. HHJ Car Accident Lawyers in San Diego has extensive experience with such cases.

Why Does the App Status Affect Everything So Much?

Everything revolves around the driver’s app status at the moment of impact. Rideshare trips consist of three ‘periods,’ and each one has its own insurance rules. 

1. App off: No Uber/Lyft coverage, only personal insurance
2. App on, waiting for a ride: Limited rideshare coverage
3. Ride accepted or passenger in the car: Highest rideshare coverage

Rideshare-specific coverage exists mainly because most personal car insurance excludes “business use,” so the driver’s insurance will generally not help if they’re transporting a passenger.

What Are the Three Periods of Rideshare Coverage?

If an Uber or Lyft driver crashes into your ride while the driver’s app is off, your claim will be handled like any other car accident: you claim from the at-fault driver’s personal policy.

1. App off – driving personally

• The driver is not logged into the Uber or Lyft app, and the trip is entirely personal.
• Only the driver’s personal auto insurance applies, and Uber and Lyft are not involved.

2. App on, waiting for a request

In severe injury cases, the lower limits of insurance policies are often not sufficient. That’s only one reason why these cases can quickly become confrontational.

• The driver is logged in and “available,” but has not accepted a ride—this is the low-coverage “waiting” period.
• If the rideshare driver is at fault, Uber/Lyft provides limited liability coverage (often around $50,000 per person/$100,000 per accident for injuries, plus property damage).
• Uninsured/underinsured motorist (UM/UIM) coverage is more restricted and varies.

3. Ride accepted or the passenger is in the car

• Period 2: Driver has accepted a ride and is en route to fetch the passenger.
• Period 3: Passenger is in the car until the trip ends.

During Period 2 and Period 3, Lyft or Uber’s $1,000,000 third-party liability coverage usually applies if the rideshare driver is at fault. When another driver is responsible for the crash but has no insurance or is underinsured, UM/UIM coverage may apply. However, SB 371 reduced those limits substantially, effective January 1, 2026

Essentially, the $1,000,000 liability coverage for crashes caused by the rideshare driver has remained unchanged. What changed is the size of the safety net when the other driver is uninsured or underinsured.

What Did California’s SB 371 Change in 2026?

If you were a rideshare passenger before January 1, 2026, and were struck by an uninsured or underinsured driver, you generally had access to up to $1,000,000 in UM/UIM coverage via the rideshare company.

However, after January 1, 2026, that protection is far smaller: UM/UIM coverage for many rideshare trips dropped to about $60,000 per person and $300,000 per accident.

For minor claims, that may be enough. On the other hand, it can leave a sizeable gap between medical needs and available insurance coverage for catastrophic injuries. Consumer advocates have been critical of the change and why your own personal UM/UIM coverage is now more important than ever.

What Can a Passenger in Uber or Lyft Claim?

If you’re a passenger in an Uber or Lyft, you’re almost always in Period 2 or Period 3:

• If the rideshare driver is at fault, you can make a claim against the $1,000,000 liability policy.
• If another driver is at fault, you first claim against that driver’s insurance.
• If that driver has no insurance or too little, you may claim under Uber/Lyft’s UM/UIM coverage (now much lower after SB 371).

In many cases, you can recover damages for:

• Medical bills and future treatment
• Lost wages and loss of earning capacity
• Pain and suffering
• Other accident-related losses

Because UM/UIM limits for rideshare trips have declined, it’s wise to review your own car insurance policy and consider higher UM/UIM limits. In many policies, your UM/UIM can protect you even when you are a passenger in someone else’s vehicle, including an Uber or Lyft.

What if I Was Driving My Own Car and an Uber or Lyft Struck Me?

Your claim depends entirely on the rideshare driver’s app status:

• App off (Period 0): You claim against the at-fault driver’s personal insurance only.
• App on, waiting (Period 1): You can pursue the rideshare company’s limited liability coverage (around $50,000/$100,000, plus property damage). These limits can be inadequate in severe crashes with major injuries.
• Ride accepted or passenger in car (Periods 2 or 3): The $1,000,000 rideshare liability policy is in play, which is usually the best scenario for an injured third-party driver.

Pedestrians and cyclists hit by an Uber or Lyft follow the same logic. The app period determines whether you’re dealing with only personal insurance or with Uber/Lyft’s higher limits.

How are Rideshare Drivers Themselves Covered?

Coverage can be complicated for the rideshare driver:

• Personal auto policies often exclude commercial use.
• During active periods (1, 2, and 3), many drivers must rely on Uber/Lyft’s coverage for liability and sometimes for damage to their own car.
• Drivers without a “rideshare endorsement” on their personal policy, or who haven’t told their insurer they drive for a Transportation Network Company, may face serious coverage gaps.

If you drive for Uber or Lyft, it’s important to review your policy with your insurer and make sure you have a rideshare endorsement or other appropriate coverage.

Why Do People Disagree or Argue Over Which “Period” Applies? 

The three-period system seems simple on paper. However, in reality, it’s one of the most hotly contested issues in rideshare claims because: 

1. Both Uber and Lyft have something to lose if they claim the driver was in a lower coverage period. 
2. Drivers may have misremembered what the app was doing a fraction of a second before the accident. 
3. The most critical information is from Uber or Lyft’s own data. Uber and Lyft maintain detailed electronic logs of when a driver: 

• Logged into the app 
• Accepted a ride 
• Reached the passenger 
• Began and completed a journey 

That information isn’t automatically handed over. It must generally be formally requested, often in litigation. Otherwise, you’re negotiating from the rideshare company’s point of view. An attorney can access and review this information to determine the proper time frame and access the proper insurance coverage.

May I File a Lawsuit Against Uber or Lyft? 

You can, but it’s not easy without the support of an experienced San Diego rideshare attorney. Under Proposition 22, drivers of rideshare services in California are considered independent contractors, not employees. 

That complicates traditional employer liability claims. Mandatory arbitration is also important for Uber and Lyft. Typical claims against rideshare providers are generally for corporate-level negligence, including: 

• Failure to conduct proper background checks or hire someone unfit or negligent 
• Failure to fix known safety problems 
• App malfunctions that played a role in the crash. 

Such cases do occur, particularly when the assault is serious or repeated, but they are complex. In the vast majority of accident cases, it is best to seek the $1,000,000 rideshare liability policy and all other insurance policies that may apply, rather than a direct attack on the company itself. 

How Long Do I Have to Bring a Rideshare Claim in California? 

In the majority of cases of personal injury and wrongful death in California:

• Two years from the accident to bring in a lawsuit. 
• When a government body is involved, much shorter deadlines (often six months).

Two years may seem like a long period of time to you, but in practice, the first 30-60 days are the most crucial window for securing data from rideshare apps. The dashcam video and surveillance footage are still available. Witnesses are also more readily available, and their recollections are more recent. Seeking legal assistance at an early stage can significantly affect the quality and potential value of your claim. 

What Is the Most Important Thing to Do Immediately After an Uber or Lyft accident? 

If you can, attempt to: 

1. Seek medical attention right away, even if you feel “okay” initially. 
2. Contact the police and ensure a report is made. 
3. Photograph the scene, vehicles, and visible injuries. 
4. Collect details of all drivers and witnesses, including insurance information. 
5. If you were a passenger in an Uber/Lyft, take a screenshot of the Uber/Lyft trip screen and receipt. 
6. Never give recorded statements to any insurance company without consulting a personal injury attorney first.

HHJ Trial Attorneys for Reliable Uber/Lyft Accident Claims

If you were hurt in an Uber or Lyft crash, you don’t have to untangle the insurance maze alone. The experienced rideshare accident lawyers at HHJ Trial Attorneys can review your case, secure critical app and insurance data, and fight for the full compensation you deserve. Contact us today for a free, no-obligation consultation and let our trial-tested team start protecting your rights immediately.