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From the Daily Journal · Updated

Uber and Lyft accidents in California: whose insurance pays?

Driver status, the three stages of rideshare insurance, and what passengers, other drivers and pedestrians should do after a crash.

Reza Torkzadeh
By Reza Torkzadeh and Allen P. WilkinsonBased on a Daily Journal column, June 21, 2024 · Updated September 2026 · 2 min read
Key points
  • Rideshare drivers are generally independent contractors in California, but insurance still applies.
  • Coverage depends on the app status: off, waiting for a ride, or on a trip.
  • Passengers are usually covered at the highest level.
  • Screenshots of the trip in the app are key evidence.

Uber and Lyft crashes raise questions that ordinary car accidents do not. Is the driver an employee? Whose insurance applies: the driver’s, the company’s, or both? The answers often depend on what the driver was doing in the app at the moment of the crash. This article explains the basics for passengers, other drivers, pedestrians and rideshare drivers themselves.

Are rideshare drivers employees?

Under a 2020 California ballot measure, app-based drivers are generally treated as independent contractors, not employees. That affects who can be held responsible for a crash and what benefits a hurt driver can receive. It does not mean no insurance applies. The insurance rules for rideshare trips are separate.

Insurance depends on the stage of the trip

California requires rideshare companies to provide insurance that changes with the trip:

  • App off: the driver’s own auto insurance applies.
  • App on, waiting for a ride request: the company’s insurance provides limited coverage if the driver’s own policy does not.
  • Ride accepted, and during the trip: the company’s insurance provides much higher coverage, including coverage for injuries caused by uninsured or underinsured drivers.

Because the stage of the trip decides so much, the app’s trip records are some of the most important evidence in the case.

If you were a passenger

Passengers are usually covered at the highest level, because the trip was in progress. That is true whether the rideshare driver or another driver caused the crash.

If a rideshare car hit you

Pedestrians, cyclists and other drivers hit by a rideshare car may have a claim against the driver’s insurance, the company’s insurance, or both, depending on the app status at the time of the crash.

What to do after a rideshare crash

  • Take screenshots of the ride in the app: the driver, the car, the time and the route.
  • Get the other drivers’ information and photograph the scene.
  • Report the crash in the app and to the police.
  • See a doctor, and don’t give a recorded statement to any insurer before you get advice.

Read more about our rideshare accident cases, and our car accident cases across California, including Los Angeles, Orange County and San Diego.

About this article. Based on "Examining rideshare drivers’ employment and insurance challenges" by Reza Torkzadeh and Allen P. Wilkinson, Daily Journal, June 21, 2024. Used with permission. Read the original (a subscription may be required).Reviewed by Tracy Horn, September 2026.General information, not legal advice about your case.
Reza Torkzadeh
Reza TorkzadehFounder and CEO of TORKLAW. Author of The Lawyer as CEO and 33 Daily Journal articles on injury law, insurance and the legal profession.Full bioAll publications
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