Uber or Lyft Accident: Who Pays and What to Do

A rideshare crash can involve three insurance policies at once: the driver's personal policy, the rideshare company's commercial policy, and the other driver's policy. Which one pays depends on timing.

Uber's coverage by app period

Uber describes its US coverage this way (rules and limits vary by state):

What the driver was doing	Coverage Uber maintains
App off	None. Only the driver's personal auto policy applies.
Online, waiting for a request	Third-party liability of $50,000 per person and $100,000 per accident for injuries, and $25,000 for property damage
En route to a pickup or on a trip	At least $1,000,000 third-party liability; uninsured/underinsured motorist coverage where state law requires it; contingent collision coverage up to actual cash value with a $2,500 deductible if the driver has their own collision coverage

Lyft uses a similar period-based structure. Because limits and uninsured motorist rules differ by state, ask for the certificate of insurance for your state.

If you were a passenger

Passengers are covered during the trip period. If your rideshare driver caused the crash, you claim against the rideshare company's liability policy. If another driver caused it, you claim against that driver's insurance first, and the rideshare company's uninsured or underinsured motorist coverage may apply where offered if that driver had too little insurance.

If another car was hit by a rideshare driver

If the rideshare driver was on a trip or heading to a pickup and was at fault, the $1 million policy is available. If the app was off, the claim goes to the driver's personal insurer, which may deny coverage if the driver did not disclose rideshare work.

If you are the driver

Report the crash both to the rideshare company through the app and to your personal insurer. Many personal policies exclude commercial driving unless you bought a rideshare endorsement.

Steps after a rideshare crash

Call 911 if anyone is hurt and get a police report.
Screenshot the trip details in your app: driver name, car, plate, time and route.
Exchange information with every driver, including the rideshare driver's personal insurer.
Photograph the scene and get witness contacts.
Report the crash in the Uber or Lyft app.
Get medical care and keep all records. See what to do after a car accident.

Can you sue Uber or Lyft directly?

Rideshare drivers are generally treated as independent contractors, so the companies usually argue they are not liable for drivers' negligence under respondeat superior, the rule that makes employers liable for employees (Cornell LII). Claims normally run against the insurance policy instead. Because multiple insurers often point at each other, injured riders and motorists frequently consult a personal injury lawyer.

Sources

This article is general legal information, not legal advice, and reading it does not create an attorney-client relationship. Laws differ by state and change over time; talk to a licensed attorney in your state about your situation.

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