Uber & Lyft Accident — No Win No Fee

How Does Uber and Lyft Insurance Work?

Direct Answer: Uber and Lyft carry $1 million in liability insurance when a driver is actively transporting a passenger. Coverage drops to lower limits when the app is on but no ride is accepted, and the driver's personal insurance applies when the app is off. Rideshare accident attorneys work on contingency.

Uber and Lyft operate a three-tier insurance system:

• App off — only the driver's personal auto insurance applies; no company coverage
• App on, no ride accepted — limited liability coverage (typically $50,000 per person / $100,000 per accident / $25,000 property damage)
• Ride accepted or passenger in vehicle — $1 million commercial liability policy, plus uninsured/underinsured motorist coverage

Who Can File a Claim?

• Passengers — covered by the $1 million policy when a ride is active
• Other drivers — can file against the rideshare driver's insurance (personal or commercial depending on tier)
• Pedestrians and cyclists — can file against the applicable insurance tier
• Rideshare drivers — may need to rely on their own insurance or UM/UIM coverage

Independent Contractor Classification

Both Uber and Lyft classify their drivers as independent contractors rather than employees. This classification limits the companies' direct vicarious liability for driver negligence. However, the commercial insurance policies they provide effectively cover most passenger and third-party claims. The employee vs. contractor debate continues in legislatures and courts across the country.