Rideshare accidents involving Uber and Lyft vehicles are among the most insurance-coverage-complex accidents you can be involved in. Whether you're a passenger, another driver, a pedestrian, or even the rideshare driver yourself, understanding the three-period coverage system is essential to knowing where your compensation comes from.
The Three Coverage Periods
Period 0: App Off
The driver's personal auto insurance applies exclusively. Uber and Lyft provide no coverage. This is the same as any regular private vehicle accident.
Period 1: App On, Waiting for a Ride Request
The driver has the Uber or Lyft app open and is available but has not accepted a ride yet. Coverage in this period is:
- Uber/Lyft provide contingent liability coverage: $50,000 per person / $100,000 per accident for bodily injury, and $25,000 for property damage
- This contingent coverage only applies if the driver's personal insurer denies the claim (most personal policies exclude commercial use)
Period 1 is where victims often get caught between the personal insurer (who says "excluded — commercial use") and Uber/Lyft (who say "the driver's policy is primary"). Having an attorney navigate this is critical.
Period 2: Ride Accepted, En Route to Pickup
The driver has accepted a trip and is driving to pick up the passenger. Uber and Lyft provide:
- $1 million in third-party liability
- Contingent comprehensive and collision coverage (if the driver has their own comp/collision)
- Contingent uninsured/underinsured motorist coverage
Period 3: Passenger in the Car
The passenger is in the vehicle until they exit. The same $1 million liability coverage applies as in Period 2. This period provides the clearest and most robust coverage.
California AB 2293 — Additional Protections
California enacted AB 2293 (effective 2015), which established minimum insurance requirements for TNCs (Transportation Network Companies) and is the legal foundation for the three-period framework above. California's requirements are among the strongest in the nation.
Who Can Bring a Claim?
- Passengers injured in a rideshare vehicle
- Third parties (other drivers, pedestrians, cyclists) hit by an Uber or Lyft driver
- Rideshare drivers injured by an uninsured or underinsured motorist
Is Uber or Lyft Itself Liable?
Uber and Lyft classify drivers as independent contractors, not employees, which limits their direct liability in most states. However, California courts have examined this classification closely, and in some circumstances — particularly where the platform's own negligence is at issue — the companies may be directly liable.
Attorney Mark Gonzales navigates Uber and Lyft insurance coverage for Inland Empire clients. Free consultation — no fee unless we win.
📞 Call 909-587-6336