By Anthony Jones, J.D. | The Berhe Law Firm, APC
You open the app, tap a few buttons, and a few minutes later a stranger's car pulls up and you climb in. Rideshare services have become a routine part of daily life for millions of Californians. Most rides end without incident. But when something goes wrong - when the driver runs a red light, when another car crosses the center line, when a collision sends you to the emergency room - the question of who pays for your injuries becomes surprisingly complicated.
California has a detailed legal framework governing rideshare insurance, and understanding it can make a significant difference in how much compensation you are ultimately able to recover.
Why Rideshare Accidents Are Different From Regular Car Accidents
In a typical car accident, the analysis is fairly straightforward: you identify the at-fault driver, you file a claim with their insurer, and if coverage is inadequate, you look to your own uninsured or underinsured motorist (UM/UIM) coverage. Rideshare accidents add several layers of complexity.
First, the at-fault party might be the Uber or Lyft driver, another driver entirely, or both. Second, the applicable insurance policy depends not just on who caused the crash, but on what the rideshare driver was doing at the exact moment of impact. Third, rideshare companies are not traditional employers - California's Proposition 22 classifies app-based drivers as independent contractors, which limits certain forms of vicarious liability - but the companies are still required by statute to carry substantial commercial insurance.
The result is a multi-layered insurance system that is deliberately complex and that rideshare companies and their insurers will not volunteer to explain to you after an accident.
The Three Coverage Periods
California law - specifically the framework established under Assembly Bill 2293 (signed into law in 2014 and codified at California Public Utilities Code Section 5433) - divides rideshare activity into three periods, each with different insurance requirements.
Period 1: App On, Waiting for a Ride
When a driver has the app active and is waiting to receive a ride request, they are not transporting anyone, but they are operating in a commercial capacity. During this period, California requires the TNC (transportation network company) or the driver to maintain primary liability coverage of at least $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $30,000 per accident for property damage. Additionally, the company must carry $200,000 in excess liability coverage per occurrence.
If you are hit by a rideshare driver during Period 1, this coverage is what applies - not the driver's personal auto policy, which explicitly excludes commercial activity. This is an important distinction because many drivers carry only minimum personal coverage, and personal policies typically contain a "livery exclusion" that voids coverage for accidents occurring while the driver is working for a rideshare platform.
Period 2: Ride Accepted, En Route to Pick Up
Once a driver accepts a ride request and is on the way to the pickup location, the coverage increases substantially. During Period 2, California requires $1,000,000 in primary commercial liability coverage. This policy covers death, personal injury, and property damage caused by the rideshare driver.
Period 3: Passenger in the Vehicle
Period 3 begins the moment you get in the car and continues until you exit at your destination. This is when you, as a passenger, have the most protection. The $1,000,000 liability policy remains in effect, covering injuries to you if the driver causes an accident.
The $1 Million Policy - And Its Recent Limits
For years, the headline figure in California rideshare insurance was $1,000,000. That number appeared in two places: third-party liability coverage (protecting passengers and others when the rideshare driver is at fault) and uninsured/underinsured motorist (UM/UIM) coverage (protecting you when a third-party driver without adequate insurance causes the crash).
That landscape changed significantly on January 1, 2026, when California Senate Bill 371 (SB 371), signed by Governor Newsom in October 2025, took effect. SB 371 left the $1,000,000 third-party liability coverage intact - meaning that if your Uber or Lyft driver causes an accident during Periods 2 or 3, that policy still applies. However, the law dramatically reduced the required UM/UIM coverage during Period 3 - from $1,000,000 per person to just $60,000 per person and $300,000 per incident.
This is a critical distinction for passengers. UM/UIM coverage is what protects you when you are in a rideshare vehicle and another driver - not your rideshare driver - causes the crash. In California, where uninsured drivers account for a significant percentage of motorists on the road, this scenario is common. Under the pre-2026 framework, victims in that situation had access to a $1,000,000 safety net. Under SB 371, that protection has been reduced by approximately 94 percent.
For accidents that occurred before January 1, 2026, the prior $1,000,000 UM/UIM limits still apply. The date of the accident matters enormously when evaluating your coverage options.
What Happens When the App Is Off
If a driver causes an accident while they are not logged into the rideshare app - what the industry calls "Period 0" - neither Uber nor Lyft provides any coverage. The driver's personal auto insurance applies. If that driver carries only California's minimum liability limits (which increased to $30,000 per person and $60,000 per accident as of January 2025), your recovery is limited to those amounts unless you have your own UM/UIM coverage to supplement.
This is one reason why personal UM/UIM coverage matters even for people who do not own a car. If you frequently use rideshare services, having your own non-owner auto policy with robust UM/UIM limits is a legitimate protective measure.
What to Do If You Are Injured as a Rideshare Passenger
The steps you take in the immediate aftermath of a rideshare accident can significantly affect your ability to recover full compensation.
- Get medical attention immediately. Even if you feel fine, injuries like whiplash, soft tissue damage, and mild traumatic brain injuries often do not manifest fully until hours or days after an accident. Delayed medical treatment gives insurers grounds to dispute causation.
- Document the scene. Take photographs of all vehicles involved, the damage, any visible injuries, road conditions, and traffic signals. Get the names and contact information of witnesses.
- Note the rideshare details. In the app, take a screenshot of your trip confirmation, the driver's name, vehicle information, and the timestamp. This establishes that Period 3 coverage applies.
- Report the accident to the rideshare company through the app. This creates a record and triggers Uber's or Lyft's claims process.
- Do not give a recorded statement to any insurer without speaking to an attorney first. Insurers - including the rideshare company's insurer - are not on your side. Statements made without legal guidance can be used to minimize or deny your claim.
- Contact an attorney promptly. California's statute of limitations for personal injury claims is generally two years from the date of injury under California Code of Civil Procedure Section 335.1. However, waiting can compromise evidence and witness recollections.
Multiple Sources of Recovery
In a serious rideshare accident, there may be more than one source of potential compensation. Depending on the circumstances, claims could be made against: the rideshare company's commercial liability policy; the at-fault third-party driver and their insurer; the rideshare company's UM/UIM policy (subject to the new SB 371 limits for post-2025 accidents); your own personal auto or non-owner UM/UIM policy; and potentially the rideshare driver's personal policy, if coverage disputes exist about their app status at the time of the crash.
Identifying and coordinating all of these potential sources of recovery requires a careful analysis of the facts, the applicable policy language, and California insurance law. It is not something to navigate without legal guidance, particularly when insurers are actively working to limit their exposure.
The Bottom Line for California Rideshare Passengers
California was once a national leader in rideshare passenger protections, with the $1,000,000 UM/UIM requirement under AB 2293 setting a high standard. The passage of SB 371 has narrowed that protection, but substantial coverage still exists for accidents where the rideshare driver is at fault. Knowing which coverage period applies, what policies are available, and how to preserve your rights after an accident is essential knowledge for anyone who regularly uses Uber, Lyft, or similar services in California.
If you or a family member has been injured in a rideshare accident in California, the personal injury attorneys at The Berhe Law Firm, APC can help you understand your rights and pursue every available source of recovery. Rideshare insurance disputes can be complex, and having experienced legal representation from the start gives you the best chance of obtaining the compensation you deserve. Contact our office today for a consultation.
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