How Insurance Works in Rideshare Accidents

Uber and Lyft provide tiered insurance coverage that depends on the driver’s activity status at the time of the accident.

When the app is off, only the driver’s personal insurance applies. When the app is on but the driver has not yet accepted a ride, limited liability coverage applies. When the driver has accepted a ride or has a passenger in the vehicle, the rideshare company’s full commercial policy applies—typically up to $1 million per accident.

This tiered system creates gaps and disputes. Insurance companies frequently argue over which tier applies, which policy is primary, and how much coverage is available. Meanwhile, the injured person is waiting for answers and accumulating medical bills.

Who Can File a Claim

Rideshare accident claims can be filed by passengers in the rideshare vehicle, occupants of other vehicles struck by a rideshare driver, pedestrians and cyclists hit by a rideshare vehicle, and rideshare drivers injured by other negligent drivers.

California law requires rideshare companies to maintain specific insurance coverage levels for their drivers. When these companies or their insurers try to avoid responsibility, the law provides tools to hold them accountable.

Compensation Available

Rideshare accident victims may recover compensation for medical treatment, lost wages, vehicle damage, pain and suffering, emotional distress, and all other damages available in a standard personal injury claim.

Rideshare accident cases involve multiple insurance layers and corporate legal teams. Beverly Wilshire Law APC can cut through the complexity and make sure you receive the compensation you are entitled to. Call (310) 424-5566 or email info@bevwilshire.com for a free consultation—we’re here to guide you in the right direction.