By Yoshiaki “Yoshi” Kubota, Founding Partner & Trial Attorney, Kubota & Craig
Rideshare accidents are legally distinct from typical car accidents. When you are injured in a vehicle driven by an Uber or Lyft driver, the question of “who pays” doesn’t just depend on who caused the crash—it depends on the precise status of the driver’s app at the split second of impact.
For years, California law provided a simple safety net: a $1 million insurance policy that covered nearly every serious rideshare accident. That changed in 2026.
With the enactment of Senate Bill 371 (Chapter 314, Statutes of 2025), the insurance landscape for passengers has shifted. While liability coverage remains high, statutory protections for passengers hit by uninsured drivers have been significantly reduced. Understanding these new rules is critical for anyone who uses rideshare apps in Irvine, Santa Ana, Anaheim, and throughout Orange County.
This guide explains the three “insurance periods” of a rideshare trip, how the new 2026 laws affect your rights, and exactly who pays for your medical bills and lost wages after a crash.
Quick Answer: Rideshare Insurance at a Glance
If you are injured in an accident involving an Uber or Lyft vehicle, coverage depends on the driver’s status under California Public Utilities Code §5433:
- App Off (Period 0): The driver’s personal insurance pays. (Minimum limits: $30k/$60k/$15k).
- App On, Waiting (Period 1): Uber/Lyft provide limited coverage ($50k/$100k/$30k) if the driver’s personal policy denies the claim.
- Ride Accepted / Passenger in Car (Periods 2 & 3): Uber/Lyft provide $1 Million in third-party liability coverage.
⚠️ CRITICAL 2026 UPDATE: If you are a passenger and the other driver is at fault but uninsured, Uber/Lyft now generally provide reduced Uninsured Motorist (UM/UIM) coverage—$60,000 per person—down from the previous $1 million standard.
The 3 Insurance Periods: A Complex Coverage Map
California law forces Transportation Network Companies (TNCs) like Uber and Lyft to carry different levels of insurance based on what the driver is doing. To get paid, we must first prove which “Period” the driver was in.
Period 0: App Off (Personal Liability)
Status: The driver is not logged into the app. They are driving for personal reasons or are done for the day.
Who Pays: The driver’s personal auto insurance.
Coverage Limits: California’s state minimums.
Note on 2025/2026 Minimums: As of January 1, 2025, California’s minimum liability limits increased under Senate Bill 1107. Drivers must now carry at least $30,000 per person / $60,000 per accident for bodily injury, and $15,000 for property damage (California Vehicle Code §16056).
While this is an improvement over the old $15k/$30k limits, it is often still insufficient for catastrophic injuries. If an off-duty Uber driver hits you and causes $100,000 in medical bills, their personal policy may cap out at $30,000, leaving you to pursue your own underinsured motorist (UIM) coverage.
Period 1: App On, Waiting for a Request
Status: The driver has the app open and is “available” to accept rides but has not yet matched with a passenger.
Who Pays: Uber or Lyft (Contingent Liability).
Coverage Limits:
- $50,000 per person for bodily injury
- $100,000 per accident for bodily injury
- $30,000 for property damage
Under California Public Utilities Code §5433(b), this coverage is “primary” if the driver’s personal insurance does not cover TNC activity—which most personal policies exclude. Crucially, this period typically does not include collision coverage for the driver’s own car.
Periods 2 & 3: En Route and Passenger Trip
Status: The driver has accepted a ride request (Period 2) or has a passenger in the vehicle (Period 3).
Who Pays: Uber or Lyft’s commercial policy.
Coverage Limits:
- $1 Million Third-Party Liability: This covers injuries to other people caused by the rideshare driver (e.g., pedestrians, other motorists, or the rideshare passengers themselves).
- Uninsured/Underinsured Motorist (UM/UIM): See the 2026 Warning Below.
⚠️ The 2026 Alert: SB 371 and the Reduction of UM/UIM Coverage
For years, rideshare passengers in California were protected by a $1 million Uninsured/Underinsured Motorist (UM/UIM) policy mandated by the state. This ensured that if you were hit by an uninsured driver while riding in an Uber, you had substantial coverage.
Senate Bill 371 changed this.
Effective in the 2025-2026 legislative cycle, the mandatory UM/UIM limits for rideshare companies have been adjusted. While the TNC must still provide coverage, the statutory minimums have decreased to align closer to standard commercial limits rather than the previous $1 million blanket.
The New 2026 UM/UIM Limits
| Coverage Type | Old Standard | New Standard (SB 371) |
|---|---|---|
| Per Person | $1,000,000 | $60,000 |
| Per Accident | $1,000,000 | $300,000 |
Why This Matters
Imagine you are a passenger in a Lyft. An uninsured driver runs a red light and hits your car, causing a severe spinal cord injury with $500,000 in medical bills.
- Previously: The rideshare company’s $1M policy would have been available to cover your damages.
- Now: The policy may only pay up to $60,000 for your individual claim—leaving you $440,000 short.
Our Advice
If you frequently use rideshare services, you must check your personal auto insurance policy. Ensure you have high Uninsured Motorist limits (e.g., $100k/$300k or higher) that apply even when you are a passenger in another vehicle. Do not rely solely on the rideshare platform’s insurance to fully protect you in a catastrophic accident.
Who Is Liable? (It’s Not Always Just the Driver)
Determining liability in a rideshare accident involves identifying every party whose negligence contributed to the crash.
1. The Rideshare Driver
If the Uber/Lyft driver was negligent (e.g., speeding, distracted driving, running a red light), they are liable. The payout source depends on their app status: personal insurance for Period 0, or the TNC’s commercial policy for Periods 1, 2, or 3.
2. The Rideshare Company (Uber/Lyft)
While companies classify drivers as “independent contractors,” they can be held directly liable for:
- Negligent Hiring: If they failed to properly screen a driver’s record.
- Negligent Retention: If they kept a dangerous driver on the platform despite complaints.
- Product Liability: If the app interface itself caused distraction.
3. Another Driver (Third Party)
If you are a passenger and another vehicle hits you, that driver is liable. If they are uninsured—as millions of California drivers are—you must turn to the rideshare company’s reduced UM/UIM policy ($60k limit) or your own personal coverage.
4. Vehicle Manufacturers
In some cases, a defective vehicle component (brakes, steering, tires) may have contributed to the crash. In these situations, the vehicle or parts manufacturer could be held liable under product liability law.
5. Public Entities
In cases involving dangerous road conditions (e.g., confusing signage, deep potholes, malfunctioning traffic signals), a claim may exist against a city or county. These claims are subject to the strictly enforced 6-month deadline of the California Government Claims Act.
Common Rideshare Accident Scenarios
Coverage shifts based on your role in the accident. Here’s how different scenarios play out:
Scenario A: You Are a Passenger
Driver at Fault: You are covered by the $1 Million third-party liability policy (Period 3).
Other Driver at Fault: You claim against the other driver. If they are uninsured, you access the rideshare company’s $60,000/$300,000 UIM coverage under the new SB 371 limits.
Scenario B: You Are Another Motorist Hit by an Uber/Lyft
Driver App Off: You are limited to the driver’s personal limits (min $30k/$60k).
Driver Waiting (Period 1): You have access to the $50k/$100k contingent policy.
Driver En Route/Transporting (Period 2/3): You have access to the full $1 Million liability policy.
Scenario C: You Are a Pedestrian or Cyclist
Pedestrians and cyclists hit by rideshare drivers generally follow the same rules as Scenario B. Proving the driver was logged in—and thus potentially distracted by the app—can be a critical part of establishing liability and accessing the higher Period 2/3 limits. Learn more about pedestrian accident claims and bicycle accident claims.
Scenario D: Fatal Rideshare Accident
If a rideshare accident results in death, the victim’s family may be able to pursue a wrongful death claim against the at-fault driver, the rideshare company, or other liable parties. These cases involve additional complexities around who has standing to sue and what damages are recoverable.
What To Do After a Rideshare Accident
Protect your rights immediately after a crash:
- Call 911: A police report provides an official, objective record of the incident.
- Screenshot the App: If you are a passenger, screenshot your ride status showing the driver’s name and “On Trip” notification. This is proof of Period 3 coverage.
- Get Insurance Details: Collect both the driver’s personal insurance info and their Uber/Lyft insurance certificate (accessible in the driver app).
- Document the Scene: Take photos of vehicle positions, damage, and any visible injuries. Note if the driver had a phone mount and if it was in use.
- Identify Witnesses: Independent accounts are vital for disputing liability.
- Seek Medical Care: Go to a doctor immediately. Delaying treatment allows insurance adjusters to devalue your injury claim.
- Report to the App: Report the accident through the app, but keep it factual. Do not admit fault or speculate on your injuries.
- Consult an Attorney: Do not sign any settlement offers from the rideshare company’s insurer until you have spoken with a lawyer.
Why These Cases Are So Complex
Rideshare accidents are more difficult to resolve than standard collisions because:
Status Disputes: Insurers often argue a driver was in Period 1 (lower coverage) instead of Period 2. Subpoenaing digital trip logs is often necessary to prove the truth.
Coverage Gaps: The interaction between personal policies, TNC policies, and your own insurance requires careful legal analysis.
New Limits: With the SB 371 reduction in UM/UIM limits, securing full compensation for serious injuries is now harder and requires finding every available layer of insurance.
Evidence Disappearance: GPS data and app logs can be lost if not immediately preserved through legal demands.
Multiple Insurers: A single accident may involve the driver’s personal policy, the TNC’s policy, another driver’s policy, and your own UIM coverage—each with different adjusters, limits, and incentives.
Frequently Asked Questions
Does Uber or Lyft insurance cover me as a passenger?
Yes, but coverage depends on the circumstances. If your Uber/Lyft driver caused the accident, you’re covered by the company’s $1 million third-party liability policy. If another driver caused the accident and they’re uninsured, the new SB 371 limits cap your recovery at $60,000 per person from the rideshare company’s UM/UIM policy.
What if the Uber driver’s app was off when they hit me?
If the driver was not logged into the app, Uber/Lyft’s commercial insurance does not apply. You would need to file a claim against the driver’s personal auto insurance, which may only carry California’s minimum limits ($30k/$60k/$15k).
How do I prove which insurance period the driver was in?
Your attorney can subpoena records from Uber or Lyft showing the driver’s exact app status at the time of the accident. Screenshots of your ride status (for passengers) and the police report also help establish coverage.
Can I sue Uber or Lyft directly?
Yes, in certain circumstances. While rideshare companies classify drivers as independent contractors, they can be held directly liable for negligent hiring (failing to screen drivers), negligent retention (keeping dangerous drivers on the platform), or if the app itself contributed to the accident.
What is the statute of limitations for a rideshare accident claim in California?
You generally have two years from the date of the accident to file a personal injury lawsuit under California Code of Civil Procedure §335.1. If a government entity is involved (e.g., dangerous road conditions), you must file a government claim within six months.
Should I accept a settlement offer from Uber or Lyft’s insurance?
Not without consulting an attorney. Initial settlement offers are often far below the true value of your claim, especially for serious injuries. Once you accept, you cannot go back for more compensation—even if your injuries turn out to be worse than initially diagnosed.
Contact the Uber Accident Lawyers at Kubota & Craig
The 2026 changes to California’s rideshare laws have made it more challenging for injured passengers to recover full damages. If you or a loved one has been injured in an Uber, Lyft, or other rideshare accident, you need an advocate who understands these evolving statutes.
At Kubota & Craig, our Uber and Lyft accident attorneys specialize in complex liability cases. We know how to secure the digital evidence needed to prove coverage and fight for the maximum compensation available under the law.
Kubota & Craig has recovered hundreds of millions of dollars for injury victims across Orange County, including multi-million dollar results in complex motor vehicle cases. We offer free consultations and work on a contingency fee basis—you pay no fees unless we win your case.
Call us today at (949) 218-5676 for a free consultation.
About the Author – Yoshiaki “Yoshi” Kubota
This article is authored by Yoshiaki “Yoshi” Kubota, Founding Partner and Trial Attorney at Kubota & Craig, a personal injury law firm based in Irvine, California. Yoshi is a California-licensed attorney in good standing with the State Bar of California (Bar #175555).
Yoshi has extensive experience handling complex motor vehicle accident cases, including rideshare accidents involving Uber and Lyft. A member of the American Board of Trial Advocates (ABOTA), he has been recognized by:
- Best Lawyers in America (2025–2026)
- Super Lawyers (2010–2026)
- Martindale-Hubbell AV Preeminent Rating
- CAOC Presidential Award of Merit
He is a member of the Consumer Attorneys of California (CAOC) and the Orange County Trial Lawyers Association (OCTLA).
Legal Disclaimer
The information in this article is provided for educational purposes only and reflects California law as of early 2026, including California Public Utilities Code §5433, Senate Bill 371, and California Vehicle Code §16056. Laws and insurance requirements can change, and how these rules apply depends on the specific facts of each case.
Reading this article does not create an attorney–client relationship with Kubota & Craig or any of its lawyers. You should not act or refrain from acting based solely on the information in this article. For legal advice about your situation, consult directly with a qualified California rideshare accident attorney.
Last Updated: January 2026
