Injured in an Uber or Lyft? Know the Insurance Limits Before You File a Claim

The promise of cheap, fast rides has made Uber a household name. But few people consider what happens when a ride goes wrong. When crashes occur, passengers get hurt, and pedestrians are struck, the question of who pays for medical bills and lost wages is no longer theoretical. The answer, as it turns out, is far from simple.

While Uber does provide insurance for these accidents, the coverage is not uniform. The status of the driver's app at the time of the crash is the single most important factor determining whether Uber's substantial $1 million policy applies or if you are left to seek compensation from the driver's personal insurer, which may offer minimal coverage.

If you find yourself dealing with injuries from an Uber crash, it is crucial to understand these rules before accepting any settlement. A legal review of your case can ensure you are not left to bear the financial burden of someone else's mistake. Michael Kelly Injury Lawyers can provide the guidance you need.

Uber's Insurance Isn’t a Single Policy

Many people assume that riding in an Uber is like being in a taxi with comprehensive commercial insurance at all times. This is a common misconception. Uber does not maintain a single, blanket policy that covers every situation. Instead, the company's insurance coverage changes dramatically based on the driver's activity within the app at the exact moment of the accident.

Here’s how the coverage breaks down:

When the App Is Off

If the driver is offline, Uber bears no responsibility. Any injuries or property damage are handled by the driver’s personal auto policy. This poses a significant risk for anyone involved in a collision with an off-duty rideshare driver. Personal policies often carry low state minimum liability limits, sometimes as little as $25,000 per injured person—a sum that is often insufficient to cover hospital stays or surgery.

App On, Waiting for a Request

When a driver goes online to wait for a request, Uber offers limited backup coverage, but only if the driver's personal policy denies or fails to cover the claim. This is a contingent policy with the following limits:

These limits can be quickly exhausted in a serious crash, as medical transport and other costs can run into the thousands. Uber's insurer may also argue that the driver's personal coverage should apply first, creating potential delays.



The $1 Million Policy: Active Trip Phase

This is where Uber's insurance coverage becomes substantial. During the "active trip" phase—which includes traveling to a pickup and the ride itself—Uber's policy includes:

This liability coverage pays for injuries or property damage caused to others if the Uber driver is at fault. The UM/UIM coverage is critical, protecting passengers and drivers if another motorist is at fault but has too little insurance or flees the scene.

Coverage for Passengers

For passengers, this high level of coverage generally means robust protection for medical bills, lost wages, rehabilitation, and other damages, provided the claim is accepted by the insurer without dispute.

The Driver’s Own Coverage

Uber's liability policy is designed to protect others from the driver's mistakes—it typically does not cover the driver's own injuries. Because drivers are classified as independent contractors, they are not entitled to standard workers' compensation. While Uber has offered optional "injury protection" in some states, drivers who do not purchase it may face significant out-of-pocket medical costs if they are injured on the job and lack strong personal health insurance.

State-Specific Variations

Uber's standard coverage levels can be affected by state-specific laws. For example, California requires $1 million in liability and UM/UIM coverage during active rides. Some states mandate higher minimum coverage even during the "waiting for request" period, while New York City has its own set of strict rules for rideshare operators. It is essential to consider local laws when assessing coverage after a crash.

Filing an Insurance Claim After an Uber Crash

Do not assume that insurers will automatically pay what is owed. They often dispute these claims, arguing about the app's status, fault, or the severity of the injuries. The following steps are recommended after an accident:

Be prepared for the possibility of multiple insurers pointing fingers at each other, which can delay payment and lead to low settlement offers.

The Bottom Line

The highly publicized $1 million promise is a powerful marketing tool, but it only applies when the driver is actively engaged in a ride. If the driver is offline or simply waiting for a request, the available coverage can be minimal or nonexistent. Understanding these details is crucial for anyone involved in an Uber accident. Knowing where coverage begins and ends can be the difference between getting your medical bills paid and facing substantial debt.

Key Takeaways