By Joshua B. Nozar, Esq.
A crash with an Uber or Lyft driver can be more confusing than a regular car accident. Several insurance companies may be involved: the driver’s, the rideshare company’s, and maybe your own. Who pays often depends on one question: what was the driver’s app doing at the moment of the crash?
California Law Requires Rideshare Insurance
California calls Uber and Lyft “transportation network companies,” or TNCs. State law says a TNC and its drivers “shall maintain transportation network company insurance” (Cal. Pub. Util. Code § 5433(a)). How much coverage is required depends on what stage of the ride the driver was in.
App off: the driver’s own insurance
If the driver was not logged in to the app, the TNC insurance rules below generally do not apply. The claim usually goes through the driver’s personal auto policy, just like a normal car accident claim.
App on, waiting for a ride request
Once the driver logs in, but before accepting a ride, the law requires primary coverage of at least “fifty thousand dollars ($50,000) for death and personal injury per person, one hundred thousand dollars ($100,000) for death and personal injury per incident, and thirty thousand dollars ($30,000) for property damage” (Cal. Pub. Util. Code § 5433(c)(1)). The TNC must also carry excess coverage of “at least two hundred thousand dollars ($200,000) per occurrence” above those limits (Cal. Pub. Util. Code § 5433(c)(2)). The same rules apply after a ride ends, until the driver accepts another ride or logs off.
Ride accepted, driving to pickup, or passenger in the car
From the moment the driver accepts a ride request until the ride is complete, the law requires primary coverage “in the amount of one million dollars ($1,000,000) for death, personal injury, and property damage” (Cal. Pub. Util. Code § 5433(b)(1)). That means the higher limit applies even while the driver is on the way to pick someone up.
Recent Change: Lower Uninsured Motorist Coverage (SB 371)
Uninsured and underinsured motorist (UM/UIM) coverage protects you when the other driver has no insurance or not enough. California recently changed this rule. Senate Bill 371 (Stats. 2025, ch. 314) took effect January 1, 2026. Before that, the Legislature’s own summary says the required UM/UIM amount was “$1,000,000.” Now the TNC “shall provide uninsured motorist coverage and underinsured motorist coverage in the amount of sixty thousand dollars ($60,000) per person and three hundred thousand dollars ($300,000) per incident” (Cal. Pub. Util. Code § 5433(b)(2)).
This coverage applies “from the moment a passenger enters the vehicle of a participating driver until the passenger exits the vehicle,” and it is “solely the obligation of the transportation network company” (Cal. Pub. Util. Code § 5433(b)(2)). If your crash happened before 2026, the older rules may apply, so the date matters.
Who Pays Depends on Who You Are
If you were the passenger
As a passenger, you usually did nothing to cause the crash. If the rideshare driver was at fault, the $1 million coverage generally applies. If another driver caused the crash and has little or no insurance, the TNC’s UM/UIM coverage may help. The law says that coverage is “primary over any other applicable uninsured or underinsured motorist coverage” (Cal. Pub. Util. Code § 5433(b)(2)). Your own UM coverage may also matter, depending on your policy.
If you were in another car
If an Uber or Lyft driver hit your car, the coverage available depends on the app stage described above. A driver with a passenger, or on the way to a pickup, falls under the $1 million requirement. A driver who was only logged in and waiting falls under the lower limits.
If you were walking or biking
Pedestrians and cyclists can be badly hurt by any car. The same app-stage rules decide which coverage applies when a rideshare driver hits someone on foot or on a bike. Learn more about pedestrian accident claims in Los Angeles.
Why the Driver’s Personal Policy May Not Help
Many people assume the driver’s own insurance will pay. But while a driver is logged in to the app, a personal auto policy “shall not provide any coverage to the participating driver, vehicle owner, or any third party, unless the policy expressly provides for that coverage” or has a special endorsement (Cal. Pub. Util. Code § 5434(b)(1)). That is a big reason the TNC insurance rules exist. The law also says TNC coverage “shall not be dependent on a personal automobile insurance policy first denying a claim” (Cal. Pub. Util. Code § 5433(d)).
Are Uber and Lyft Drivers “Employees”?
Under Proposition 22, an app-based driver “is an independent contractor and not an employee or agent” of the company, if certain conditions are met (Cal. Bus. & Prof. Code § 7451). Rideshare companies may use this to argue they are not responsible for the driver’s conduct. But the insurance requirements above still apply. And the law states that it “does not limit the liability of a transportation network company” for amounts above the required insurance (Cal. Pub. Util. Code § 5433(f)). Whether a company can be held responsible beyond its insurance depends on the facts of each case.
What to Do After a Rideshare Crash
Many of the steps are the same as in our guide on what to do after a car accident in Los Angeles. For rideshare crashes, also:
- Screenshot the app. Save the trip details, driver name, car, route, and time. If you were a passenger, save your receipt.
- Ask the driver if they were logged in. Note whether they had a ride or were waiting.
- Get the driver’s personal insurance too. Both policies may matter.
- Call 911 and get a police report.
- Take photos of the cars, the scene, and your injuries.
- Get medical care right away, even if you feel okay.
- Report the crash in the app, but be careful about giving recorded statements to any insurer before getting legal advice.
Don’t Wait Too Long
In California, most injury lawsuits must be filed “within two years” (Cal. Code Civ. Proc. § 335.1). Some cases have shorter deadlines, such as claims against a government agency. Read more in How Long Do I Have to File a Personal Injury Claim in California?
Frequently Asked Questions
Does Uber or Lyft pay if their driver hits me?
It depends on the app status. If the driver had accepted a ride or had a passenger, California requires $1 million in primary coverage (Cal. Pub. Util. Code § 5433(b)(1)). If the driver was only logged in and waiting, lower limits apply.
What if the driver says the app was off?
App data can show whether the driver was logged in. That is why screenshots and quick action matter. A lawyer can ask for the records.
How much uninsured motorist coverage do Uber and Lyft have now?
For crashes on or after January 1, 2026, the required amount is $60,000 per person and $300,000 per incident while a passenger is in the car (Cal. Pub. Util. Code § 5433(b)(2)).
Can I make a claim if I was partly at fault?
Possibly. In negligence cases, California’s Supreme Court has held that your share of fault “shall not bar recovery,” but your damages are reduced by your percentage of fault (Li v. Yellow Cab Co. (1975) 13 Cal.3d 804, 829). Every case is different.
Talk to a Los Angeles Uber Accident Lawyer
If you were hurt in a crash with an Uber or Lyft driver, a Los Angeles Uber accident lawyer at Nozar Law, APC can help you sort out which insurance applies. We offer a free case evaluation, and there are no attorney fees unless we win. Se habla español. Call (310) 620-4400 today.
This article is general information, not legal advice. Reading it does not create an attorney-client relationship. Past results do not guarantee a similar outcome.
