Every time you tap "I agree" in the Uber or Lyft app, you accept terms that include an arbitration agreement. After a crash, the companies use those terms to move injury claims out of court and into private arbitration. New Jersey courts have frequently enforced them. Here is what that means, and what it doesn't.

What arbitration is

Arbitration replaces a judge and jury with a private arbitrator chosen under the agreement's rules. Proceedings are generally private, discovery is often more limited, and appeals are very narrow. You still present evidence and can still recover compensation, but the setting and strategy are different.

How New Jersey courts have treated Uber's terms

New Jersey requires an arbitration agreement to explain clearly that a person is giving up the right to go to court (Atalese v. U.S. Legal Services Group, 219 N.J. 430 (2014)). Uber's current terms are written with that rule in mind, and the Appellate Division has enforced them in a series of rideshare injury cases:

  • Williams v. Ysabel (App. Div. Sept. 7, 2023, unpublished): in an auto accident case, the court affirmed an order compelling arbitration of the injured plaintiffs' claims against Uber.
  • McGinty v. Zheng (App. Div. Sept. 20, 2024, unpublished): a couple seriously injured during an Uber ride argued that their minor daughter, not the account holder, had accepted updated terms while ordering food through Uber Eats. The court held the arbitration agreement valid and enforceable and sent the claims against Uber to arbitration, while the case against the other defendants stayed in court, paused in the meantime.
  • Villeda-Granados v. Uber Technologies (App. Div. Mar. 28, 2025, unpublished): a rider who used the app in Spanish argued the terms themselves were in English. The court affirmed the order compelling arbitration.

Unpublished opinions aren't binding precedent in New Jersey, but they show how courts have been approaching these terms. After McGinty, New Jersey lawmakers considered a bill to limit consumer contract terms to the specific service purchased. Check the current status of any such law before relying on it.

What arbitration usually doesn't affect

  • Claims against other drivers. The arbitration agreement is between you and the app company. A claim against a different motorist who caused the crash stays in court.
  • The insurance itself. The $1.5 million in coverage required during a ride doesn't disappear because a claim is arbitrated (N.J.S.A. 39:5H-10). Rideshare coverage explained.
  • People who never agreed. A pedestrian, cyclist or other driver hit by a rideshare car generally never accepted the app's terms. Whether a family member is bound depends on the terms' wording and the facts, as McGinty shows.

Common challenges to arbitration

  • You didn't actually agree, or someone else accepted the terms
  • The notice of updated terms wasn't clear enough
  • The waiver language didn't clearly explain the loss of the right to sue in court
  • The claim falls outside what the agreement covers

Many of the companies' terms say that an arbitrator, not a court, decides disputes about whether the agreement is enforceable. Courts look at those "delegation" clauses closely, but they have often enforced them.

What to do

  1. Don't delete the app or your account. The history of which terms were accepted, and when, may matter.
  2. Note who in your household uses your account.
  3. Get legal advice before filing anything. The right first move depends on whether the claim is against the company, the drivers, or both.

For how a rideshare case proceeds overall, see filing a rideshare injury lawsuit and our Uber and Lyft accidents page.