Some of the most serious rideshare cases start with a driver who has no insurance, too little insurance, or who disappears after the crash. In an ordinary car accident, that can leave an injured person with very little. In a New Jersey rideshare crash, the law requires a large layer of protection for exactly this situation.

The $1.5 million UM/UIM requirement

During a prearranged ride, from the moment the driver accepts a request until the last passenger leaves the car, New Jersey requires at least $1,500,000 in uninsured and underinsured motorist (UM/UIM) coverage (N.J.S.A. 39:5H-10(c)(3)). While the driver is logged on and waiting for a request, UM/UIM coverage is required to the standard extent set by New Jersey insurance law (N.J.S.A. 39:5H-10(b)(3); N.J.S.A. 17:28-1.1).

Who can use it

  • Passengers hurt during an active ride.
  • The rideshare driver, during the covered app periods. For drivers who usually have no workers' compensation, this can be the most important coverage in the case. Options for injured drivers.

Pedestrians and drivers of other cars generally look to their own UM/UIM coverage instead.

Uninsured vs. underinsured

  • Uninsured: the at-fault driver has no insurance, their insurer properly denies coverage, or the driver can't be identified, as in a hit-and-run.
  • Underinsured: the at-fault driver has insurance, but not enough to cover your losses. New Jersey's minimum policies can carry very low liability limits, so serious injuries quickly outrun them.

Hit-and-run crashes

When a driver flees, the UM claim stands in for the claim you would have brought against them. To protect it:

  1. Report the crash to police right away. Policies and courts look closely at whether a hit-and-run was promptly reported.
  2. Write down anything you remember about the fleeing car: color, make, partial plate, direction.
  3. Find video fast. Nearby businesses, homes and traffic cameras often overwrite footage within days. Your rideshare driver's dashcam may have captured it too.
  4. Notify the insurers promptly. UM/UIM policies contain notice and cooperation requirements.

We secured a $1.15 million settlement for a rideshare driver in Essex County who was struck by a stolen vehicle that fled the scene and who needed multiple spinal surgeries. A case like that depends on locating every layer of coverage, not just the obvious one.

How the claim works

A UM/UIM claim is made against an insurance policy that protects you, but the insurer doesn't act like it's on your side. You still have to prove the other driver was at fault and prove the full value of your injuries. UIM claims in New Jersey also involve rules about notifying your UIM carrier before you settle with the at-fault driver, so the carrier can protect its rights. Settling with the at-fault driver without following those steps can jeopardize the UIM claim.

Stacking coverage

A passenger or driver may have UM/UIM coverage from more than one source: the rideshare policy, their own auto policy, or a household member's. Policy language, and New Jersey's rules on which coverage applies first, control how they interact. This is a common place to leave money on the table.

Deadlines

The claim against the at-fault driver is subject to the two-year filing deadline (N.J.S.A. 2A:14-2). UM/UIM claims are contract claims with their own timing rules and policy notice requirements, so get advice early rather than relying on the longer period. New Jersey injury deadlines.

See our hit-and-run and Uber and Lyft accidents pages.