Introduction

In the past 10 years, taxi cabs have become all but obsolete, given the rise of rise of rideshare services like Uber and Lyft. If you happen to find yourself in an accident with a rideshare vehicle, understanding who pays for damages and injuries can be a headache. Here is a brief breakdown of how the claims process works when a rideshare vehicle is involved in an accident:

Understand the Liability Insurance Policies of Uber and Lyft:

Uber and Lyft have come to dominate the rideshare industry in 2025. Both of these giant companies have adopted similar liability insurance policies to deal with cases of auto accidents involving drivers on their apps. Here is a brief breakdown of the insurance policies held by Uber and Lyft (based on a driver’s app status during the time of an accident):

1. Driver’s App is Off: When the driver is not logged into the Uber or Lyft app, they are considered off duty. In a situation like this, the driver’s personal auto insurance is responsible for covering any accidents.
2. Driver is Logged into the App but Hasn’t Accepted a Ride Request: Uber and Lyft’s insurance policy kicks in when a driver is logged into the app and is waiting for a ride request. In the situation described above, Uber and Lyft’s insurance covers the following (if the driver’s personal insurance does not apply):
   • $50,000/person for bodily injury
   • $100,000/accident for bodily injury
   • $25,000/accident for property damage
3. Driver Has Accepted a Ride Request and is En Route to Pick Up a Passenger or During the Ride: When a driver accepts a ride (in either Uber or Lyft), regardless of if they have picked up their passenger yet or not, Uber and Lyft maintain the following insurance coverage:
   • At least $1,000,000 for 3^rd party auto liability coverage
   • 1^st party coverages, which may include uninsured motorist coverage, underinsured motorist coverage, PIP, MedPay, and/or occupational accident coverage 

If You are a Passenger in the Rideshare Vehicle:

No-Fault (1^st Party) Benefits: As a passenger in a rideshare vehicle, you are entitled to the same no-fault benefits as when you are behind the wheel. Through your own auto insurance policy, you can receive coverage for:

• Medical Expenses
• Lost Wages
• Property Damages

Pain and Suffering (3^rd Party) Compensation: As a passenger in an Uber or Lyft, you can also receive 3^rd party compensation, if you are injured by an at-fault driver. With the help of an experienced injury attorney, you may be able to make a claim (against Uber, Lyft, or another driver who caused the accident while you were in an Uber or Lyft) for:

• Pain and suffering
• Mental Anguish
• Disfigurement
• Excess Medical Expenses
• Excess Lost Wages

If You are Another Driver Involved in the Accident:

As a driver involved in an accident with a rideshare vehicle, the situation remains very similar to when you are a passenger. You can pursue 1^st party benefits through your own auto insurance and file a lawsuit against Uber or Lyft in an effort to receive 3^rd party compensation. As previously mentioned, the insurance policies of both Uber and Lyft cover up to $1,000,000 in damages depending on when the accident took place.

Steps to Take Following a Rideshare Accident:

1. Seek Medical Attention: Get treatment for any injuries sustained in the accident, by a professional.
2. Report the Accident: File a police report to ensure the accident is well documented.
3. Gather Information: Collect relevant details like:
4. • Rideshare driver’s name
   • Rideshare driver’s insurance details
   • Rideshare driver’s contact information
5. Notify Your Insurance: Inform your insurer about the accident as soon as possible.
6. Consult an Attorney: Given the complex nature of rideshare accident claims, it is best to utilize the services of an experienced injury attorney.

If you find yourself in need of legal services following an accident with a rideshare driver, reach out to David Femminineo at 855-65CRASH or visit our website today!

David and his team possess countless years of experience in dealing with cases of auto accidents and personal injury. Reach out today and take your next step toward receiving the compensation you deserve.