At their core, the insurance policies for Uber and Lyft are structured almost identically. Both companies provide up to $1 million in third-party liability coverage when a passenger is in the vehicle. This coverage applies if their driver is at fault for an accident that injures you.
The similarities, however, are misleading. The process of filing a claim, dealing with their insurance adjusters, and managing the gaps in their policies feel very different. A key challenge is the high deductible ($2,500 for both companies), which their driver must pay before collision coverage kicks in, often creating complications for everyone involved.
While securing compensation is possible, it requires a clear understanding of how these corporate policies interact with the driver’s personal insurance and Arizona law. If you have a question about an accident involving a rideshare vehicle, call our Rideshare accident lawyers at (623) 303-5754.
The Three Tiers: How Both Uber and Lyft Structure Their Insurance
After a rideshare accident, it’s not immediately clear whose insurance is supposed to pay for your injuries and damages.
This confusion exists because Uber and Lyft drivers are independent contractors, and the active insurance policy changes depending on what the driver was doing at the moment of the crash. A single accident could involve the driver’s personal policy, the company’s limited coverage, or the company’s full liability policy.
Both companies use a nearly identical three-tiered system.
Tier 1: The Driver is Offline or the App is Off.
In this scenario, the driver is considered to be using their vehicle for personal use. Uber and Lyft provide no coverage. You would file a claim against the driver's personal auto insurance policy, just as you would in any other car accident.
Tier 2: The Driver is Online and Waiting for a Ride Request.
This is where the companies’ “contingent” liability coverage applies. It's a lower level of coverage that is active when the driver is available but has not yet accepted a ride. Both Uber and Lyft provide:
- $50,000 in bodily injury liability per person.
- $100,000 in bodily injury liability per accident.
- $25,000 in property damage liability per accident.
This coverage typically only applies if the driver's personal auto insurance denies the claim, which is a common occurrence, as most personal policies exclude commercial driving.
Tier 3: The Driver Has Accepted a Ride or Is Transporting a Passenger.
Once a driver accepts a request or you are in the car as a passenger, the full commercial insurance policy is triggered. Both Uber and Lyft provide:
- $1,000,000 in third-party liability coverage. This is the policy that covers injuries to other drivers, pedestrians, or passengers in other vehicles, as well as property damage.
- Uninsured/Underinsured Motorist (UM/UIM) Coverage: This protects you if the at-fault driver is the other driver, and they either have no insurance or not enough to cover your injuries.
- Contingent Collision and Comprehensive Coverage: This covers damage to the rideshare driver’s own car, but as mentioned, it comes with a high $2,500 deductible that the driver must pay first.
So, Is There a Difference Between Uber and Lyft’s Coverage Where It Matters?
If the insurance policies are the same on paper, why does an accident with an Uber sometimes feel different than one with a Lyft? The answer lies not in the policy documents but in the companies themselves. These factors can indirectly influence your claim.
- Market Dominance and Resources: As of a recent survey, Uber controlled about 76% of the U.S. rideshare market, compared to Lyft's 24%. Uber also reported its first annual operating profit in 2023, signaling a different level of financial stability. A larger, more profitable company may have more extensive legal and claims-adjusting departments, affecting everything from response times to negotiation tactics.
- Company Culture and Driver Support: The two companies have different approaches to their drivers. For example, drivers have reported differences in app functionality and support systems. A driver who feels more supported by their company may be more cooperative and forthcoming with information after an accident, which simplifies the investigation process.
- Safety Data and Incident Rates: While both companies have extremely low incident rates, a recent analysis found Uber's overall safety incident rate was 33% lower than Lyft's. Though the absolute risk is tiny, this data suggests potential differences in driver screening, monitoring, or safety feature implementation that could be relevant in a personal injury case.
- Technological and Service Differences: Uber's expansion into food delivery with Uber Eats and other ventures shows a different corporate strategy than Lyft's primary focus on ridesharing. While not directly related to insurance, these strategic priorities shape the resources and focus of each company, which can trickle down to how they handle liability claims.
You want a claims process that is straightforward and fair, where the company is held accountable for the harm caused by its driver. If you're concerned about how these factors might affect your situation, it may be time to discuss your case with someone who handles these claims regularly.
The Coverage Gaps You Need to Know About
Even with a policy that offers up to $1 million in coverage, you might find yourself facing unpaid bills. This is a frustrating reality for many who assume the large policy number means full protection.
Both Uber and Lyft's policies contain specific gaps and conditions that might leave accident victims in a difficult position.
- The High Deductible Dilemma: As mentioned, both companies require their drivers to pay a $2,500 deductible before their collision coverage applies. Many drivers cannot afford this out-of-pocket expense. This leads to delays in getting the driver's vehicle repaired and complicates the property damage portion of a claim for everyone involved.
- The Tier 2 Trap: The lower coverage limits during the "waiting for a ride" period ($50,000 per person/$100,000 per accident) is quickly exhausted by serious injuries. If you are hit by a rideshare driver who is in this phase, the available insurance may not be enough to cover all your medical expenses and lost wages.
- Personal Auto Policy Exclusions: Most standard auto insurance policies contain a "business use exclusion." This means if a rideshare driver causes an accident while logged into the app, their personal insurer will almost certainly deny the claim. This forces you to deal with Uber or Lyft's commercial insurer.
- What About Your Own Injuries as a Passenger? Uber and Lyft's liability coverage pays for injuries to other people when their driver is at fault. What if another driver hits your Uber? In that case, you would first file a claim with the at-fault driver's insurance. If that driver is uninsured or underinsured, you would then turn to Uber or Lyft's Uninsured/Underinsured Motorist (UM/UIM) coverage.
A personal injury claim seeks compensation for all your damages, using all available insurance policies to fill these gaps and ensure your costs are covered.
Unique Rideshare Accident Scenarios and Their Insurance Impact
Not every Uber or Lyft crash fits the classic passenger-in-the-backseat scenario. If you’re involved in a rideshare accident as a pedestrian, cyclist, driver in another car, or during a shared or delivery ride, the insurance picture changes. Here’s what you need to know about how coverage applies in these less common, but increasingly frequent, situations.
If You’re Hit as a Pedestrian or Cyclist
You don’t have to be a rideshare passenger to make a claim against Uber or Lyft’s insurance. If you’re struck by a driver who is logged into the app, whether waiting for a ride request, on the way to pick up a passenger, or transporting someone, one of the company’s insurance tiers will apply.
- Waiting for a Ride (Tier 2): Coverage is limited—usually $50,000 per person for injuries and $25,000 for property damage.
- Ride Accepted or Passenger On Board (Tier 3): The full $1 million policy is triggered.
Always get the rideshare driver’s information, insist on a police report, and document the app status if possible. Your own health insurance and uninsured/underinsured motorist coverage may also help if the company coverage isn’t enough.
If You’re in a Pool or Shared Ride
When you share a ride with strangers through Uber Pool or Lyft Shared, the coverage doesn’t change, but the claim process can get messy, with multiple injured parties making claims against the same policy.
- Multiple Passengers: All injured passengers have access to the $1 million pool, but serious accidents exhaust this coverage quickly.
- Documentation: Save your trip summary from the app, get names and contact info for other riders, and keep all receipts for your records.
If You’re Hit While Making Deliveries (Uber Eats, DoorDash, etc.)
If the driver was delivering food or packages, different rules might apply.
- Uber Eats: Drivers are covered by a separate policy, but the limits are similar to those for passengers.
- Multi-App Drivers: If the driver was logged into more than one app, identifying which company’s coverage applies can be complicated. Insist that the police report clearly states the app status and the nature of the trip at the time of the crash.
If You’re a Driver or Passenger in Another Car
If you’re injured in a collision caused by a rideshare driver, the tiered coverage system still applies.
- Proving App Status: The key factor is whether the driver was logged in and active on the app. Insurance adjusters will try to minimize company responsibility if they can argue the driver was “off the clock.”
- UM/UIM Claims: If the at-fault rideshare driver lacks sufficient coverage, your own uninsured/underinsured motorist policy may cover the difference.
How Arizona Law Shapes Your Rideshare Accident Claim
While Uber and Lyft operate nationally, your claim is governed by state law. Here in Arizona, a few key rules will apply to your case.
Arizona's Minimum Liability Requirements
Arizona requires all drivers to carry a minimum of $25,000/$50,000/$15,000 in liability coverage. However, for rideshare companies (known as Transportation Network Companies or TNCs), the law requires the higher coverage limits that Uber and Lyft already provide.
The Statute of Limitations
In Arizona, you generally have two years from the date of the accident to file a personal injury lawsuit. This deadline is strict. Waiting too long to act means losing your right to pursue compensation entirely.
Comparative Negligence
Arizona uses a "pure comparative negligence" rule. This legal concept means you can still recover damages even if you were partially at fault for the accident. However, your final compensation award will be reduced by your percentage of fault. Insurance companies will investigate thoroughly to find any evidence they can use to argue you were partially to blame, which is why having someone build a case on your behalf is so important.
How Our Firm Manages Your Claim Against Uber or Lyft
When you are injured, the last thing you need is to take on a large corporation and its insurance company alone. Our role is to handle the entire process so you can focus on your recovery.
- We Investigate Immediately: We work to preserve evidence, identify which insurance period applies, and determine all potential sources of coverage.
- We Handle All Communications: You will not have to speak with insurance adjusters. We manage all correspondence, file the necessary paperwork, and submit all demands on your behalf. Their adjusters are trained to protect the company's financial interests; our job is to protect yours.
- We Document Your Damages: We work with you and your medical providers to gather all the records needed to show the full extent of your injuries, lost income, and future needs.
- We Negotiate for Full Compensation: We build a claim based on facts and evidence and negotiate for a settlement that covers all your economic and non-economic damages. If the insurance company is unwilling to offer a fair settlement, we are prepared to file a lawsuit.
Frequently Asked Questions About Rideshare Insurance
Can I use my own health insurance for my injuries?
Yes, and you should. Use your health insurance for immediate medical treatment. A personal injury claim can then seek to recover your out-of-pocket costs, like deductibles and co-pays, from the at-fault party's insurance.
Why do I need a lawyer if they have a $1 million policy?
The existence of a policy does not guarantee a fair payment. The insurance company's goal is to pay out as little as possible. We work to ensure your damages are fully calculated and that the settlement you receive is fair and just, not just the first lowball number they offer.
What if the at-fault driver fled the scene (hit-and-run)?
If you were a passenger in an Uber or Lyft, you could make a claim under their Uninsured Motorist (UM) coverage. If you were another driver or pedestrian, you would look to your own policy's UM coverage first.
Securing Your Recovery After a Rideshare Accident
Our team at Kurtz Riley Law Group has years of experience handling these specific types of cases. We are here to provide clear guidance and manage your claim from start to finish.Call us today for a straightforward conversation about your situation at (623) 303-5754.
Kurtz Riley Injury Lawyers - Scottsdale Office
10609 Hayden Rd Suite 106
Scottsdale, AZ 85260
(623) 303-5754