Understanding the Different Rideshare Insurance Periods
One of the most confusing questions that tends to arise after a rideshare accident is also one of the most important: Whose is responsible for paying for your injuries? The answer is complicated because of how transportation network companies (TNCs) like Uber and Lyft structure their operations.
To protect the public from this confusion, California lawmakers created a mandatory, multi-layered insurance system that all TNCs must follow. The California Public Utilities Commission (CPUC) sets the specific insurance requirements that Uber and Lyft must carry for each distinct period of a driver's activity.
As your legal team, part of our duties is to pinpoint the exact insurance policy that applies to your case.
Scenario 1: Driver Is Offline (Period 0)
What It Means
The driver is using their vehicle for personal use. They aren’t logged into the Uber or Lyft app and aren’t available to accept ride requests.
Which Insurance Applies
The driver's personal auto insurance policy is the primary (and only) source of coverage. Uber or Lyft's corporate insurance provides no protection in this situation.
Why It Matters to You
If you’re hit by a driver who’s offline, your claim is treated like any other standard car accident. We’ll file a claim directly against their personal auto policy.
Scenario 2: Driver Is on the App and Waiting for a Ride Request (Period 1)
What It Means
The driver is logged into the app and is available for service but hasn’t yet accepted a specific trip request.
Which Insurance Applies
The driver's personal insurance is still the primary policy, but most personal policies deny coverage if the driver is engaged in commercial activity. To cover this gap, California law requires Uber and Lyft to provide a contingent liability policy.
This type of policy typically offers:
- $50,000 per person for bodily injury
- $100,000 total per accident for bodily injury
- $25,000 for property damage
Why It Matters to You
This coverage is better than nothing, but it may be insufficient for serious injuries. Proving that the driver was in Period 1 will be critical to your claim.
Scenario 3: Driver Has Accepted a Ride Request and Is on the Way to Pick Up a Passenger (Period 2)
What It Means
The moment a driver accepts a ride request, the legal landscape changes completely. They’re now actively engaged in commercial activity on behalf of the rideshare company.
Which Insurance Applies
Uber and Lyft's full $1 million corporate commercial insurance policy is now active. This policy includes:
- $1,000,000 in third-party liability coverage
- $1,000,000 uninsured/underinsured Motorist (UM/UIM) coverage
Why It Matters to You
If a driver hits you in this period, or if you’re a rideshare driver and you’re struck by an uninsured motorist, this is the policy we’ll pursue to cover your losses.
Scenario 4: Passenger Is in the Rideshare Vehicle (Period 3)
What It Means
This is the period of highest responsibility for the TNC. It lasts from the moment the passenger enters the vehicle until the moment they exit at their destination.
Which Insurance Applies
The same $1 million corporate commercial insurance policy from Period 2 remains active during Period 3.
Why It Matters to You
As a passenger, you’re fully covered by this policy for your injuries, regardless of who was at fault for the accident. This coverage also protects other drivers, pedestrians, or cyclists who are hit by a rideshare vehicle carrying a passenger.
How We Prove Which Period the Driver Was In
Uber and Lyft won’t volunteer this information on their own. Their insurance adjusters will often try to push liability onto the driver's smaller personal policy.
Our first course of action is to send a legal preservation letter to the TNC, demanding that they preserve the critical electronic data that shows the driver's status. We’ll then use the legal discovery process to obtain:
- The driver's ride logs and digital records
- GPS data displaying the vehicle's location and movements
- Internal communications between the driver and the rideshare company
Your Rights After a Rideshare Crash
The insurance policies that apply and the legal strategy we employ may vary depending on your role in the accident. Whether you were a passenger, another road user, or a rideshare driver yourself, we understand the unique challenges you’re facing and can help you overcome them.
What to Know If You Were Injured as a Passenger
As a passenger in a rideshare vehicle, you’re in the strongest position for a successful claim. From the time your trip begins until the moment it ends, you’re protected by the rideshare company's full $1 million commercial insurance policy.
Your primary advantage is that you almost certainly weren’t at fault for the accident. That means your claim for compensation is secure regardless of whether your rideshare driver or the driver of another vehicle caused the collision.
If Your Rideshare Driver Was at Fault
We’ll file a claim directly against Uber or Lyft's $1 million liability policy to cover your medical bills, lost wages, pain and suffering, and other impacts.
If Another Driver Was at Fault
We’ll first pursue a claim against the at-fault driver's insurance. However, if they’re uninsured or have a policy too small to cover your injuries (which is common), we’ll file a claim against the $1 million UM/UIM policy provided by Uber or Lyft.
This is a critical safety net that protects you as a passenger, and Uber and Lyft are required by law to provide this coverage. You can review the details of Uber's official Certificate of Insurance for the public to understand these policies.
Our attorneys will coordinate these claims to ensure that you receive the maximum possible recovery without delay. Let us handle the communication between the relevant insurance companies while you focus on healing.
What to Know If You Were Hit by a Rideshare Driver
If you were hit by someone driving for Uber or Lyft while in your own car, walking, or cycling, your ability to recover damages is directly tied to the driver's status in the app at the time of the accident.
This is where our investigation into the driver's insurance period becomes vital. Whether the driver was offline or en route can mean the difference between an inadequate payout and $1 million of commercial protection.
We’ll send a preservation-of-evidence letter to the TNC to ensure that they don’t delete the digital records showing the driver's status. Once we know whether the driver was in Period 1, 2, or 3, we can force Uber or Lyft's corporate insurer to the negotiating table.
Insurance adjusters sometimes try to claim that the rideshare driver was on a personal errand. We can use digital data, witness statements, and legal discovery to prove that they were engaged in commercial activity, thereby gaining access to the much larger policy needed to cover your serious injuries.
What to Know If You Were Injured While Driving for Uber or Lyft
As a rideshare driver, you face a unique set of challenges. You’re considered an independent contractor, which can complicate your options for recovery, but you still have unassailable rights. In this instance, your legal path depends on who caused the accident.
If another motorist was at fault, you have the right to file a claim against their insurance policy, just like in any other car accident. However, if they’re uninsured or underinsured, you have another powerful tool available.
If you were on your way to pick up a passenger or had one in the vehicle (Period 2 or 3), you’re covered by your company's $1 million UM/UIM policy. We can help you bring a claim against your employer’s insurance to cover your losses.
The legal landscape for gig workers in California is constantly evolving due to laws like Proposition 22, which can affect your eligibility for certain benefits. We can help you navigate these complex rules to determine whether you have a viable workers' compensation claim in addition to your personal injury case.
For an official overview of your rights as an app-based worker, refer to the information provided by the California Labor and Workforce Development Agency (LWDA).
HHT Law is here to help you understand all of your options as a driver and make sure you have access to every available source of recovery.
