Rideshare insurance depends on what the driver was doing at the moment of the crash. Here's how the coverage tiers work.
The Three Insurance Periods That Decide Coverage
California rideshare coverage depends entirely on what the driver was doing at the moment of the crash. The law and the companies' policies divide a driver's time into three periods, and the available insurance changes dramatically between them.
Identifying the correct period is the single most important step in a rideshare claim, because it determines which policy — and how much coverage — applies.
App Off: Only the Driver's Personal Policy
When the rideshare app is off, the driver is treated like any other motorist. Only their personal auto insurance applies, and rideshare company coverage is not available.
If that personal policy is small or nonexistent, your own uninsured/underinsured motorist coverage may become important.
App On, Waiting for a Ride: Limited Coverage
Once a driver turns the app on but has not yet accepted a ride, Uber and Lyft provide limited contingent liability coverage — typically smaller limits than when a passenger is aboard.
This 'gap' period often produces coverage disputes, which is why pinning down the timeline matters so much.
En Route or Carrying a Passenger: $1 Million in Coverage
From the moment a driver accepts a ride until the passenger is dropped off, Uber and Lyft carry up to $1 million in liability coverage. This is the period with the most protection for injured people.
Whether you were the passenger, another driver, or a pedestrian, this coverage may apply to your injuries.
If You Were the Passenger or a Pedestrian
Passengers injured in a rideshare crash are almost never at fault and can usually pursue the company's coverage. Pedestrians and other drivers struck by an on-trip rideshare vehicle may also access that coverage.
The key is proving the driver's app status at the moment of impact, which trip records can establish.
Why Rideshare Claims Get Complicated Fast
Rideshare claims involve multiple insurers, app data held by the company, and disputes over which period applied. Companies are slow to release records, and evidence can be lost.
Acting quickly to preserve trip data and get advice protects your claim.
This article is for general informational purposes only and is not legal advice. Laws change and every case is different. For advice about your specific situation, consult a licensed California attorney.