Uber, Lyft, and Rideshare Accidents: What You Need to Know
November 5, 2025
Rideshare services like Uber and Lyft have made getting around more convenient — but when an accident happens, figuring out who’s responsible can be confusing.
Between commercial insurance coverage, driver vs. company liability, and different rules depending on app activity, understanding your rights is essential.
At LFK Law Practice, P.C., we help passengers, pedestrians, and drivers navigate the complexities of rideshare accident claims to make sure they get the compensation they deserve.
1. Commercial Insurance Coverage
Both Uber and Lyft carry commercial insurance policies that protect drivers and passengers — but that coverage only applies during certain times.
Uber Coverage
Uber provides up to $1 million in liability coverage when the driver is on a trip or picking up a rider. If the app is on but no ride is accepted yet, limited coverage applies for bodily injury and property damage.
👉 Learn more on Uber’s official insurance page.
Lyft Coverage
Lyft’s policy is similar. The company offers up to $1 million in liability coverage once a ride is accepted and during the trip, but much less coverage when the app is on and no passenger has been matched yet.
👉 Read Lyft’s official insurance breakdown.
💡 Tip:
Rideshare drivers should also have personal auto insurance that includes rideshare coverage, since company coverage may not apply when the app is off.
👉 Progressive explains how rideshare insurance fills this gap.
2. Driver vs. Company Liability
Liability in rideshare accidents often depends on whether the driver or the company can be held responsible.
In general:
- When the driver is offline (app off): Only the driver’s personal insurance applies.
- When the app is on, waiting for a ride: Limited company coverage applies.
- When the driver has accepted or is transporting a rider: Full company coverage applies.
Courts have debated whether Uber and Lyft should be considered employers or independent contractor platforms — and this classification affects liability.
👉 Lyft Insurance coverage terms
3. Passenger Injuries
If you were a passenger in an Uber or Lyft, you’re typically covered under the company’s $1 million liability policy once the ride starts.
This coverage includes:
- Medical expenses
- Lost income
- Pain and suffering
If another driver caused the crash, Uber or Lyft’s uninsured/underinsured motorist coverage can help cover your injuries when the at-fault driver has no or limited insurance.
4. When the App Is On vs. Off
One of the most confusing parts of rideshare claims is how coverage changes based on the driver’s app status:
Driver’s App Status |
Coverage Type |
Who’s Responsible? |
APP OFF
Driver’s personal insurance only
Driver
APP ON (waiting for ride)
Limited company coverage (usually $50,000 per person / $100,000 per accident)
Uber/Lyft secondary coverage
Ride Accepted / Passenger Onboard
Up to $1 million commercial coverage
Uber/Lyft
Understanding these distinctions helps ensure that victims file claims with the correct insurer and avoid delays in getting compensated.
What to Do After a Rideshare Accident
If you’ve been injured in an Uber or Lyft crash:
- Call 911 and seek medical attention immediately.
- Take screenshots of your ride details and driver info.
- Report the crash through the rideshare app.
Contact a personal injury attorney experienced in rideshare cases to help preserve evidence and identify all potential insurance coverage.
How LFK Law Practice, P.C. Can Help
Our firm helps accident victims recover compensation for:
- Medical bills and rehabilitation
- Lost wages
- Pain and suffering
- Long-term care needs
We work directly with insurance carriers and rideshare companies to ensure your rights are protected every step of the way.
📞 Contact LFK Law Practice, P.C. today to discuss your rideshare accident case and explore your legal options.
