Car Accidents Involving Uber or Lyft in California: Who Pays and How to File a Claim

Rideshare collisions are the most insurance-layered claims on California roads. The driver's personal policy, the rideshare company's contingent policy, the rideshare company's $1 million primary policy, your own UM/UIM coverage, and sometimes a third driver's policy may all apply — and which one pays depends entirely on which app-status second the crash occurred in.

California regulates Transportation Network Companies (TNCs) — Uber, Lyft, and a handful of smaller players — under Public Utilities Code §§ 5430–5443, the CPUC TNC rules, and the insurance scheme codified at Insurance Code §§ 11580.1, 11580.24, and 5433. Every rideshare driver operates in one of four 'app periods,' and each period unlocks a different layer of insurance with different limits, different deductibles, and a different primary carrier. Identifying the period at the moment of impact is the single most important fact in the claim.

Period 0 is when the app is off. The driver is operating purely personally and only the driver's personal auto policy applies. Period 1 is when the app is on but the driver has not yet accepted a ride request — California requires contingent liability coverage of at least 50/100/30 ($50,000 per person, $100,000 per accident, $30,000 property damage) under Public Utilities Code § 5433(b). Period 2 is from acceptance of a ride request until the passenger is picked up. Period 3 is from passenger pickup until passenger drop-off. Periods 2 and 3 unlock the rideshare company's $1 million primary liability policy plus $1 million UM/UIM coverage under Public Utilities Code § 5433(c).

If you are a passenger in an Uber or Lyft and the rideshare driver causes the crash — or another driver causes it — the rideshare company's $1 million primary liability and $1 million UM/UIM coverage applies in full, because you are in Period 3 by definition. Passengers virtually never have a coverage-availability problem; the issue is almost always proving damages and navigating the adjuster (typically Sedgwick, York Risk, or CCMSI on Uber/Lyft files), not finding insurance. Both Uber and Lyft contract their claims handling to third-party administrators that follow scripted protocols indistinguishable from any major liability carrier.

If you are in another vehicle struck by a rideshare driver, your recovery depends on the app period. In Periods 2 and 3 you tender the claim to the rideshare company's $1 million primary carrier and the personal policy is excess. In Period 1, the contingent 50/100/30 applies and the driver's personal carrier is usually excess after the contingent layer is exhausted (subject to the driver's personal-policy rideshare endorsement, which most personal auto policies require for TNC drivers — and which many drivers do not carry). In Period 0, only the driver's personal policy applies, and personal auto policies frequently exclude any commercial use even when the app is technically off if the driver was 'logged in' shortly before the crash.

Personal-policy rideshare exclusions

Standard California personal auto policies contain a 'public or livery conveyance' exclusion that voids coverage when the vehicle is being used for hire. Most major carriers — State Farm, Allstate, GEICO, Progressive, Farmers, Mercury — sell a rideshare endorsement (often $10–$30/month) that fills the Period 1 gap and preserves coverage in Period 0 even when the driver was recently online. Many rideshare drivers do not carry the endorsement, which can leave a coverage void in Period 1 if the contingent policy denies or the driver's personal carrier successfully invokes the livery exclusion. For injured claimants, this means tendering aggressively to the rideshare company's contingent carrier early and getting written coverage positions in the file.

Proving the app period

App-period proof is critical and is uniquely vulnerable to spoliation. Uber and Lyft retain GPS, app-status, and ride-request data for limited periods and routinely produce it only under formal preservation demand or subpoena. Send a written litigation hold and preservation letter to the rideshare company within days of the crash identifying the driver, the date, and the approximate time, demanding preservation of all app-status, GPS, telemetry, ride-request, and trip data. Failure to preserve these records is sanctionable as spoliation under Code of Civil Procedure § 2023.030 and CACI 204.

When the rideshare carrier offers UM/UIM in Periods 2 and 3

Public Utilities Code § 5433(c) requires the rideshare company to maintain $1 million in uninsured/underinsured motorist coverage during Periods 2 and 3. This coverage applies when you are a rideshare passenger struck by an uninsured or underinsured third-party driver. The carrier — typically Allianz or Liberty Mutual on Uber files, and Indian Harbor or York on Lyft files — handles the UM claim under California Insurance Code § 11580.2 with single-arbitrator binding arbitration. The same arbitration strategy from any other UM claim applies: build the file arbitration-ready from day one with full medical, billing, and wage-loss documentation.

• Period 0 (app off): driver's personal policy only.
• Period 1 (app on, no ride accepted): TNC contingent 50/100/30 under Pub. Util. Code § 5433(b).
• Period 2 (ride accepted, pre-pickup): TNC $1M primary liability + $1M UM/UIM under § 5433(c).
• Period 3 (passenger in vehicle): TNC $1M primary liability + $1M UM/UIM — passengers fully covered.
• Send a written preservation/litigation hold to Uber or Lyft within days for app-status and GPS data.
• Personal policy 'public or livery conveyance' exclusions void coverage absent a rideshare endorsement.

The app period at the second of impact decides everything A two-minute swing between Period 1 and Period 2 changes the available coverage by roughly $950,000. The rideshare company knows this — which is why coverage denials in TNC cases almost always rest on app-period disputes. Preserve the GPS and app-status data within days, not months.

Related Article: What to Do When the At-Fault Driver Has No Insurance in California Rideshare cases frequently involve coverage gaps that mirror the uninsured-motorist scenario. Read the full uninsured-driver guide at /articles/uninsured-motorist-accident-california.

Related Article: What to Do Immediately After a Car Accident in California: A Step-by-Step Guide Identifying app status and preserving rideshare evidence at the scene determines which policy covers the claim. Read the step-by-step scene guide at /articles/what-to-do-immediately-after-car-accident.

Frequently Asked Questions

Q: I was a passenger in an Uber or Lyft. Whose insurance pays? A: The rideshare company's $1 million primary liability policy applies if the rideshare driver was at fault, and the $1 million UM/UIM policy applies if a third-party uninsured or underinsured driver was at fault. Both coverages are required by Public Utilities Code § 5433(c) during Periods 2 and 3 (ride accepted through drop-off). As a passenger you are in Period 3 by definition — coverage availability is not the issue, only proof of damages and adjuster handling.

Q: A rideshare driver hit me while I was in another car. Who pays? A: It depends on the app period at the moment of impact. If the driver had a passenger or was en route to pick one up (Periods 2 or 3), the rideshare company's $1 million primary liability policy applies. If the app was on but no ride was accepted (Period 1), California requires contingent 50/100/30 coverage under Public Utilities Code § 5433(b), with the driver's personal policy as excess if a rideshare endorsement is in place. If the app was off (Period 0), only the driver's personal policy applies.

Q: Does Uber or Lyft's $1 million policy always apply? A: No. The $1 million policy applies only during Periods 2 and 3 — from ride acceptance to passenger drop-off. Outside that window, the coverage drops to a contingent 50/100/30 in Period 1 and to the driver's personal policy alone in Period 0. This is why establishing the app period at the second of impact is the single most important fact in any rideshare claim, and why preserving the GPS and app-status data immediately is critical.

Q: What if the rideshare driver was not logged into the app? A: Only the driver's personal auto policy applies, and standard California personal auto policies contain a 'public or livery conveyance' exclusion that can void coverage if the driver was using the vehicle for hire even shortly before the crash. Drivers who carry a rideshare endorsement on their personal policy preserve coverage in Period 0; drivers without the endorsement may face a coverage denial. If the personal policy denies, an asset-based claim against the driver and a UM claim under your own policy remain available.

Q: How do I file a claim against Uber or Lyft after an accident? A: Report the crash through the in-app safety menu (which creates a timestamped record), obtain a police report, photograph the scene and all vehicles, and identify the driver and the app status. Within days, send a written preservation/litigation hold to the rideshare company demanding preservation of all app-status, GPS, telemetry, and trip data. Tender the claim to the rideshare company's third-party administrator (Sedgwick, York Risk, Liberty Mutual, or Allianz depending on the company and coverage layer). Do not give a recorded statement or sign a medical authorization before speaking with counsel.

Q: Can I sue Uber or Lyft directly? A: Generally no — the drivers are classified as independent contractors under California Business and Professions Code § 7451 (Proposition 22, 2020), which shields the rideshare company from vicarious liability for the driver's negligence. Recovery routes through the company's mandatory $1 million insurance policy rather than through direct corporate liability. Limited exceptions exist for the company's own direct negligence (negligent hiring, retention, or app design), but those theories face significant doctrinal obstacles. The insurance policies are the primary recovery source by design.

Q: How long do I have to file a rideshare accident claim in California? A: The same statutes apply as in any auto claim — two years from the date of injury under Code of Civil Procedure § 335.1 for the personal-injury claim against the driver, and three years for property damage under CCP § 338. UM/UIM claims against the rideshare company's UM carrier are governed by Insurance Code § 11580.2(i) and require either suit, written agreement to arbitrate, or formal arbitration demand within two years of the date of loss. App-status data preservation is far more time-sensitive — send a written hold within days.

Q: The rideshare company's adjuster is denying app-period coverage. What do I do? A: Demand a written coverage position citing the specific app period the carrier contends applied and the data supporting that position. Subpoena the GPS, app-status, and ride-request records directly from the rideshare company through formal discovery — Sedgwick and other TPAs frequently rely on incomplete data summaries that crumble under direct production. If the dispute persists, file a complaint with the California Department of Insurance under Insurance Code § 790.03(h) and consider a declaratory relief action under Code of Civil Procedure § 1060 to resolve coverage before damages litigation.

Q: Does the rideshare company's $1 million UM coverage cover me as a passenger if a hit-and-run driver hits the Uber? A: Yes, subject to the California physical-contact rule. Public Utilities Code § 5433(c) requires $1 million in UM/UIM coverage during Periods 2 and 3, and a passenger in a Period 3 trip is squarely within coverage. As with any California UM claim, hit-and-run coverage under Insurance Code § 11580.2(b) requires actual physical contact between vehicles and prompt reporting to law enforcement (within 24 hours) and the insurer. Photograph the contact damage on the Uber or Lyft vehicle immediately.