Rideshare Accident Liability: How Uber and Lyft Insurance Works for Passengers, Drivers, and Third Parties

Services like Uber and Lyft have become a big part of everyday transportation. But when a rideshare vehicle is involved in an accident, figuring out who’s responsible, and whose insurance will pay, can be confusing.

Liability depends on who was at fault, what stage of the ride the driver was in, and the insurance policies in play. In the event of an accident while ridesharing, various parties may share responsibility, including the rideshare company, the driver, and potentially other drivers involved.

This guide explains how rideshare accident coverage works for passengers, drivers, and third parties so you know what to expect if you ever need to file a claim.

How Rideshare Liability Works

A rideshare accident can involve multiple parties:

• The rideshare driver
• Passengers
• Other drivers or pedestrians
• The rideshare company itself (Uber or Lyft)

Who pays for injuries or damages depends on:

• Fault (who caused the accident)
• The driver’s status in the rideshare app
• State laws on insurance and liability

Uber & Lyft Insurance Coverage by Driver Status

Both Uber and Lyft provide different levels of insurance depending on whether the driver is using the app and what stage of a trip they’re in.

Offline (App Off)

If the driver is not logged into the rideshare app, Uber and Lyft provide no coverage at all. Any accident during this time would be handled entirely by the driver’s personal auto insurance policy.

App On, Waiting for a Ride Request

When the driver is logged into the app but hasn’t accepted a ride yet, Uber and Lyft provide limited third-party liability coverage. This usually includes up to $50,000 in injury coverage per person, $100,000 per accident, and $25,000 for property damage. There’s no collision coverage during this stage unless the driver’s personal policy includes it.

En Route to Pick Up a Passenger or During an Active Trip

From the moment a driver accepts a ride request until the passenger is dropped off, Uber and Lyft provide their highest level of protection. This includes up to $1 million in third-party liability coverage, as well as uninsured/underinsured motorist coverage and contingent collision coverage (if the driver’s personal policy includes collision coverage).

How This Affects Passengers

If you’re a passenger in a rideshare accident:

• You’re covered under the rideshare company’s $1 million liability policy if the Uber/Lyft driver is at fault.
• If another driver is at fault but is uninsured or underinsured, Uber/Lyft’s policy also includes uninsured/underinsured motorist coverage.
• You may need to file a claim with both the rideshare company and your own auto or health insurance, depending on state rules.

What to do immediately after the accident:

1. Get medical attention, even if injuries seem minor.
2. Take photos of the scene and your injuries.
3. Collect the driver’s name, license, insurance info, and rideshare trip details.
4. Report the accident through the rideshare app and keep a copy of your report.

How This Affects Drivers

If you’re driving for Uber or Lyft:

• When offline, only your personal auto insurance applies.
• When waiting for a ride request, you have limited liability coverage from Uber/Lyft — but no collision coverage unless your personal policy includes it.
• During an active trip, Uber/Lyft’s $1 million policy applies, plus contingent collision coverage (if you also have collision coverage on your personal policy).

Important: Many personal auto policies exclude “driving for hire” unless you have a rideshare endorsement. Without it, your insurer could deny your claim.

Third-Party Claims

If you’re a pedestrian, cyclist, or occupant of another vehicle hit by a rideshare car:

• You can typically file a claim against the at-fault driver’s insurance.
• If the rideshare driver was working (app on), Uber/Lyft’s liability policy may cover your damages.
• You’ll need evidence that the driver was logged into the rideshare app at the time of the crash.

Damages you can claim may include:

• Medical expenses
• Lost wages
• Pain and suffering
• Property damage

State Laws Matter

Rideshare insurance requirements vary by state. Some states mandate higher minimum coverages or have specific reporting rules after an accident. These laws can affect:

• Deadlines for filing claims (statutes of limitations)
• How fault is determined (pure vs. modified comparative negligence)
• Available compensation (caps on certain damages)

If you’re in an accident involving Uber or Lyft, check your state’s rideshare insurance laws or speak with a local insurance expert.

Bottom Line

Rideshare accident liability is shared between personal auto insurance, rideshare company coverage, and state laws — and the details change depending on the driver’s status in the app.

If you’re a passenger, you’ll usually have strong protection during an active ride. For drivers, adding a rideshare endorsement to your policy can help avoid gaps in coverage. And if you’re a third party, understanding how to confirm a driver’s app status can be key to getting your claim paid.