Rideshare crashes raise a question ordinary car accidents don't: whose insurance applies? The answer depends on exactly what the Uber or Lyft driver was doing in the app when the crash happened. New Jersey has a specific law for this, the Transportation Network Company Safety and Regulatory Act, and it sets the insurance that has to be in place at each stage.
The three periods that decide coverage
Under N.J.S.A. 39:5H-10, the insurance depends on the driver's app status at the moment of the crash:
Period 0: App off
The driver is just a private driver. Only the driver's personal auto policy applies. Uber's and Lyft's commercial policies don't.
Period 1: App on, waiting for a ride request
The driver is logged in and available but hasn't accepted a ride. The law requires at least:
- $50,000 per person and $100,000 per accident in bodily injury liability, plus $25,000 for property damage
- Primary PIP benefits
- Uninsured and underinsured motorist coverage
Period 2: Ride accepted through drop-off
From the moment the driver accepts a request until the last passenger gets out, the required coverage rises sharply, to at least $1.5 million in liability coverage and $1.5 million in uninsured/underinsured motorist coverage. This is typically provided through the rideshare company's commercial policy.
The app's own data, including timestamps for logging on, accepting the ride, picking up, and dropping off, proves which period applies. It needs to be preserved and obtained early.
If you were a passenger
Passengers are rarely at fault, so the question is mainly which insurance pays.
- Medical bills: During an active ride, the law doesn't require PIP on the rideshare policy, only $10,000 in medical payments coverage for the driver (N.J.S.A. 39:5H-10(c)(2)). If you or a relative you live with has a New Jersey auto policy, submit a PIP claim promptly, and use your health insurance for treatment. Passenger rights in detail.
- Pain and suffering: If the rideshare driver caused the crash, the $1.5 million coverage applies. If another driver caused it, you claim against that driver's insurance first. If they're uninsured or underinsured, the rideshare UM/UIM coverage may fill the gap.
- The verbal threshold: In a lawsuit arising from a prearranged ride, the rideshare company and its driver can't assert the limitation on lawsuit option (N.J.S.A. 39:5H-10(j)), so passengers suing them generally don't need to prove a permanent injury. Threshold guide.
If you were in another car, walking, or biking
If the rideshare driver caused the crash, the coverage depends on the app period. A driver on an active ride must carry at least $1.5 million in coverage. A driver waiting for a request has much less, and a driver with the app off has only their personal policy. Pedestrians and cyclists generally get PIP for medical bills from their own or their household's auto policy first. Pedestrians and cyclists hit by a rideshare car.
If you were the rideshare driver
Uber and Lyft classify drivers as independent contractors, which usually means no workers' compensation. Your options typically include:
- A claim against the at-fault driver
- The rideshare company's uninsured/underinsured motorist coverage, if the at-fault driver has no insurance, too little, or fled the scene
- Your own PIP and UM/UIM coverage, depending on your policy and app status
We secured a $1.15 million settlement for a rideshare driver in Essex County who was hit by a stolen vehicle that fled the scene and who needed multiple spinal surgeries. Cases like that depend on finding every available layer of coverage. Options for injured drivers.
Can I sue Uber or Lyft directly?
Usually the claim is against the driver, paid through the insurance the law requires (more on suing the company). The rideshare companies generally argue that they aren't directly responsible for a driver's negligence. Direct claims against the company may be possible in specific situations, such as a failure to properly screen a driver with a disqualifying record. Rideshare companies' terms of service also contain arbitration clauses that may affect some claims, particularly for riders. These are questions to review with a lawyer, not to assume either way. How arbitration affects rideshare claims.
What to do after a rideshare crash
- Call 911 and get medical care.
- Take screenshots of the trip in your app right away: the driver's name, the vehicle, the route, and the times.
- Photograph the vehicles, the plates, and the scene.
- Get the driver's personal insurance information as well as the rideshare details.
- Report the crash in the app, but keep it factual and brief.
- Don't give recorded statements to any insurer before getting advice.
Deadlines
The standard New Jersey two-year deadline to file a personal injury lawsuit applies (N.J.S.A. 2A:14-2). UM/UIM claims under rideshare policies may have their own notice requirements, so don't wait. All New Jersey deadlines.
See our Uber and Lyft accidents page for more.