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Uber and Lyft Accidents in California: Who Pays?

Rideshare accident insurance is confusing even to attorneys. Here's exactly how California's rideshare insurance tiers work and what to do if you're hurt.

May 15, 2026 • Rideshare Accidents

California has more rideshare users than almost anywhere else in the country, and rideshare accidents are an increasingly common source of serious injuries. If you've been hurt in an Uber or Lyft accident, whether as a passenger, another driver, or a pedestrian, the insurance situation is complicated. Here's how it works.

The Four Phases of Rideshare Insurance Coverage

Phase 1, App Off: The driver is not working. Only the driver's personal auto insurance applies. Uber and Lyft provide no coverage.

Phase 2, App On, No Ride Accepted: The driver is logged in and waiting for a request. If an accident occurs, Uber and Lyft provide contingent liability coverage of $50,000 per person / $100,000 per accident / $25,000 for property damage, but only if the driver's personal insurance does not cover the claim.

Phase 3, Ride Accepted Through Pickup: Once a driver accepts a ride request and is on the way to pick up the passenger, Uber and Lyft's $1 million commercial liability policy applies.

Phase 4, Passenger in the Vehicle: The $1 million commercial policy continues to apply throughout the trip until the passenger exits the vehicle.

What to Do If You're in a Rideshare Accident

Important: Both Uber and Lyft have large legal teams whose job is to minimize claims. Having an attorney who understands the rideshare insurance tiers is critical to making sure the right policy pays, and pays fully.

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