An Uber or Lyft driver just hit you, or you were the passenger when your driver caused a crash. Now you’re wondering who actually pays. The short answer: it depends on what the driver’s app was doing at the moment of impact. As an Uber accident lawyer would tell you, that single detail decides which policy applies and how much money is available.
This post walks through each insurance period, who pays in each one, and what the insurance company will try to do with that information.
Who is liable when a rideshare driver causes a crash?
The driver who caused the crash is liable. But in most cases, the money comes from an insurance policy, and California law decides which one by looking at the driver’s app status. There are four stages, often called “periods,” and the coverage changes sharply between them.
Uber and Lyft treat their drivers as independent contractors. That means suing the company directly is usually not the main path to recovery. The real fight is over which insurance policy was in force at the second of the crash.
How do the rideshare insurance periods work?
California requires rideshare companies (legally called transportation network companies, or TNCs) to carry specific coverage. The California Public Utilities Commission’s TNC insurance requirements break it into periods based on the app. Here’s how it plays out.
| App status | Period | Whose insurance pays first | Minimum liability coverage |
|---|---|---|---|
| App off | Personal use | Driver’s personal auto policy | Driver’s own policy limits |
| App on, waiting for a ride request | Period 1 | Driver’s policy, then rideshare company’s contingent coverage | $50,000 per person, $100,000 per crash, $30,000 property damage, plus $200,000 excess |
| Ride accepted, driving to pickup | Period 2 | Rideshare company’s commercial policy | $1 million |
| Passenger in the car | Period 3 | Rideshare company’s commercial policy | $1 million |
App off: just another driver
If the app was closed, the driver was a regular motorist. Their personal auto policy is the only liability coverage in play. Uber and Lyft’s policies do not apply at all.
Period 1: app on, no ride yet
This is the gray zone. The driver is working, but nobody has requested a ride. Many personal auto policies exclude commercial driving, so the rideshare company’s contingent coverage steps in. The limits are much lower than the $1 million figure you’ve probably heard about.
Periods 2 and 3: ride accepted or passenger on board
Once the driver accepts a request, the rideshare company’s $1 million commercial liability policy applies. It stays in place until the passenger gets out. This is where the largest pool of coverage sits, and it’s why an Uber accident lawyer will want the trip data before anything else.
What changed for rideshare passengers in 2026?
Here’s a change many people missed. Until recently, rideshare companies had to carry $1 million in uninsured and underinsured motorist coverage while a passenger was in the car. That coverage pays you when a different driver causes the crash and has no insurance, or not enough.
In October 2025, Governor Newsom signed Senate Bill 371, which lowered that requirement to $60,000 per person and $300,000 per crash. The change amends Public Utilities Code section 5433 and took effect at the start of 2026.
The $1 million liability coverage for crashes your rideshare driver causes did not change. The cut applies to crashes caused by an uninsured or underinsured third driver. If that’s your situation, your own auto policy’s UM coverage may add to what’s available, even though you weren’t driving your own car.
Who pays depends on where you were
The answer shifts depending on your role in the crash, and it’s the first question an Uber accident lawyer will ask you.
- You were the passenger. You’re almost always in Period 3. If your driver caused it, the $1 million policy applies. If another driver caused it, you claim against that driver first, then the rideshare UM/UIM coverage if they’re uninsured.
- You were in another car. The driver’s app status decides everything. App off means their personal policy. App on means the tiered coverage above.
- You were walking or biking. Same rule as another car. A pedestrian struck by a driver heading to a pickup is in Period 2 territory.
- You were the rideshare driver. Your situation is different, and coverage for your own injuries depends heavily on the facts. Talk to an Uber accident lawyer before you accept anything.
What does the insurance company do in a rideshare claim?
Eli Rezvani spent the early part of his career on the insurance defense side. He knows how carriers handle these files, because he used to work them. Here’s what usually happens, and what an Uber accident lawyer does about it.
They fight over the period. The rideshare company’s insurer will look for any reason the crash happened in Period 1 or with the app off. A few seconds of difference in the trip log can drop available coverage from $1 million to $50,000. The motive is simple: lower limits mean a lower ceiling on your claim. The counter is to get the app data preserved and produced early, before anyone can shape the story.
They point at each other. The driver’s personal carrier says it was commercial use. The commercial carrier says the driver was off the clock. While they argue, your medical bills pile up. An Uber accident lawyer forces both carriers to answer in writing and holds them to it.
They ask for a recorded statement. The adjuster will sound friendly. The call is designed to lock you into details about timing, your injuries, and what you saw. You are not required to give one to the other side’s insurer.
They offer fast money. An early offer, made before you know how badly you’re hurt, is a way to close the file cheaply. Once you sign a release, the claim is usually over for good.
What should you do after a rideshare crash?
If you can do these things safely, they protect your claim.
- Get medical care right away. Your health comes first, and records created early link your injuries to the crash.
- Call the police. A written report helps establish fault and timing.
- Screenshot the app. Capture the trip screen, the driver’s name, the car, and the time. Passengers have this data. Use it.
- Get the driver’s insurance information. California rules require rideshare drivers to show proof of both personal and commercial coverage after a crash.
- Photograph everything. The cars, the scene, traffic signals, and your injuries.
- Report the crash in the app. Keep the language factual. Don’t guess about fault.
- Don’t give a recorded statement. Politely decline until you’ve talked with an Uber accident lawyer.
- Get a free case review. The sooner an Uber accident lawyer requests the trip data, the better.
Questions people ask an Uber accident lawyer
Can I sue Uber or Lyft directly?
Sometimes, but rarely as the main claim. Because drivers are classified as independent contractors, most recoveries come through the insurance policies described above. An Uber accident lawyer will look for any separate claim against the company based on the facts.
What if the rideshare driver had their app off?
Then the crash is treated like any other car crash. The driver’s personal insurance pays, up to its limits. Your own UM coverage may help if those limits are low.
Does the $1 million policy cover me if I was in the other car?
It can. If the rideshare driver had accepted a ride or had a passenger on board, the $1 million liability coverage applies to people they injure, including other drivers, pedestrians, and cyclists.
How long do I have to file a claim?
In California, the general deadline for a personal injury lawsuit is two years from the date of injury under Code of Civil Procedure section 335.1. Your deadline depends on the facts, and claims involving a public entity run far shorter. Don’t wait to find out.
Do I need an Uber accident lawyer if the driver admitted fault?
Admitting fault doesn’t settle which policy pays or how much. The period dispute happens regardless of who caused the crash. That’s usually where a motor vehicle accident injury lawyer earns their place.
How The Accident Duo can help
If you were hurt in an Uber or Lyft crash, you don’t have to sort out the insurance maze alone. The Accident Duo was founded by brothers Mathew Rezvani and Eli Rezvani, and they take these calls personally, day or night. You won’t be handed off to a case manager.
As your Uber accident lawyer team, we move fast to preserve trip data, identify every policy that applies, and push back when carriers try to shrink your claim. Learn more about our Uber and Lyft accident representation. The consultation is free, and you pay $0 unless we win. Call (310) 694-9500 or request a free case review.
This article is advertising material and is provided for general information only. It is not legal advice, and reading it does not create an attorney-client relationship. Case outcomes described are representative examples; prior results do not guarantee a similar outcome. Every case depends on its own facts and the applicable law. For advice about your situation, contact The Accident Duo for a free consultation.
