By: Daryoosh Khashayar, Founder and Managing Partner, Khashayar Law Group | ABOTA Member | Office: 1350 Columbia St., Suite 303, San Diego, CA 92101 | Practice Area: Rideshare Accidents (Uber and Lyft) | Last Updated: September 24, 2026.

Legal review note: This article was checked against the current text of California Public Utilities Code Section 5433 as amended by SB 371 (effective January 1, 2026), the California Department of Insurance TNC notices, and Uber's and Lyft's published California insurance terms in September 2026. Laws change, and this is general information, not legal advice about your case.

The Straight Answer

Who pays after an Uber or Lyft crash in California depends on one thing above all: what the driver's app was doing at the moment of impact. If a passenger was in the car or the driver was on the way to a pickup, the rideshare company must carry $1,000,000 in primary liability coverage under Public Utilities Code §5433. If the driver was logged in and waiting for a ride request, a smaller mandatory policy applies. If the app was off, it is an ordinary car accident and the driver's personal insurance responds. And if another driver caused the crash, that driver's insurance pays first, with the rideshare coverage layered behind it. The details, including a major change to the law that took effect January 1, 2026, are below.

The Uber and Lyft Insurance Periods, Explained

California law divides a rideshare driver's day into periods, and each period carries different mandatory coverage:

  • App off. The driver is a private motorist. Their personal auto policy applies, and nothing from Uber or Lyft does. Lyft states plainly that it has no policy that applies when the app is off.
  • Period 1: app on, waiting for a request. Coverage of at least $50,000 per person and $100,000 per accident for injuries and $30,000 for property damage must be in place, maintained by the company, the driver, or a combination of the two, plus excess coverage of at least $200,000 per occurrence (PU Code §5433(c)). Note that Uber's and Lyft's national pages advertise $25,000 in property damage; the California statute requires $30,000.
  • Periods 2 and 3: ride accepted through drop-off. Primary coverage of $1,000,000 for death, personal injury, and property damage (PU Code §5433(b)(1)). This is the coverage most injured passengers and third parties claim against.

What Changed on January 1, 2026

Most articles on this topic are now out of date, because SB 371 rewrote the uninsured and underinsured motorist rules effective January 1, 2026. Uninsured/underinsured motorist (UM/UIM) coverage protects people in the rideshare vehicle when the at-fault driver is someone else who has no insurance or too little insurance. It has always applied while a passenger is in the vehicle, from entry to exit. What changed is the amount and who must provide it:

  • Accidents before January 1, 2026: the required UM/UIM was $1,000,000, and the obligation could be satisfied by the company, the driver, or a combination of the two.
  • Accidents on or after January 1, 2026: the required UM/UIM is $60,000 per person and $300,000 per accident (PU Code §5433(b)(2)). It must be primary over any other UM/UIM coverage and is now solely the rideshare company's obligation.
  • Airport exception: Uber's current California insurance certificate maintains $1,000,000 in UM/UIM per accident on the premises of certain listed airports, including San Diego International Airport and McClellan-Palomar Airport.

Why this matters: for a crash on or after January 1, 2026, the UM/UIM protection is a fraction of what it used to be. That makes identifying every other applicable policy, including the injured person's own UM/UIM coverage on their personal auto policy, far more important than it was a year ago.

Who Can Claim Against the Rideshare Coverage

  • Passengers injured while riding: the $1M liability policy applies, plus the UM/UIM described above if the at-fault party is uninsured or underinsured.
  • Drivers and occupants of other cars hit by an at-fault rideshare driver: the coverage matching the rideshare driver's app period applies ($1M during a trip, 50/100/30 plus excess while waiting).
  • Pedestrians and cyclists struck by a rideshare driver: same period rules.
  • The rideshare driver: the liability policies protect others, not the driver. The driver's own injuries caused by an uninsured motorist fall under the UM/UIM coverage only while a passenger is aboard. In Period 1, drivers rely on their own health coverage, a rideshare endorsement on their personal policy, or the occupational accident coverage California app-based drivers receive under Proposition 22 (Business & Professions Code §7455).

What If the Other Driver Caused the Crash?

The at-fault driver's liability insurance pays first, exactly as in any California collision, and California's pure comparative negligence rules apply. The rideshare UM/UIM coverage becomes critical when that at-fault driver carries no insurance or only minimum limits. One warning for anyone hurt as a rideshare passenger: do not assume the $1 million policy covers your crash automatically. It is a liability policy that pays when the rideshare driver is at fault. When the other driver is at fault, your recovery runs through that driver's policy and then UM/UIM, and the January 2026 changes cut those UM/UIM limits sharply.

Can You Sue Uber or Lyft Directly?

Rideshare drivers are independent contractors under Proposition 22 (Business & Professions Code §7448 and following), which the California Supreme Court upheld in Castellanos v. State of California (2024) 16 Cal.5th 588. But an injured person does not need to prove Uber or Lyft employed the driver to be compensated: the §5433 insurance applies regardless of the driver's contractor status, the statute bars the companies from making their coverage contingent on a personal policy denying the claim first (§5433(d)), and it expressly preserves the right to pursue liability claims above the insurance limits (§5433(f)).

What to Do After an Uber or Lyft Crash

  • Report it in the app. Uber accepts crash reports through its Safety Toolkit and rider help pages; Lyft has a report-an-accident flow in its Help Center. The report timestamps the crash inside the company's own system.
  • Screenshot the trip. The trip receipt, the driver's name and photo, the route map, and the time stamps establish which insurance period applies. Capture them before the trip disappears into history.
  • Report to police. California Vehicle Code §20008 requires a written report to the CHP or local police within 24 hours of any injury crash.
  • Get medical care immediately. The gap between the crash and the first medical visit is the first thing every insurer examines.
  • Mind the deadlines. Most claims must be filed within two years under CCP §335.1; if a public entity is involved, a written government claim is generally due within six months under Government Code §911.2.

Frequently Asked Questions

Who pays if you are injured in an Uber or Lyft accident in California?

The insurance matching the driver's app status: $1,000,000 in primary liability coverage while a ride is in progress or the driver is en route to a pickup, $50,000/$100,000/$30,000 plus $200,000 excess while the driver is waiting for a request, and the driver's personal policy when the app is off. If another driver caused the crash, that driver's insurance pays first.

What does Uber's $1 million insurance policy actually cover?

It is liability coverage for death, personal injury, and property damage the rideshare driver causes to others, passengers included, from ride acceptance through drop-off. It does not automatically pay a passenger when someone else caused the crash, and it does not cover the driver's own injuries.

What happens if my Uber or Lyft driver was not at fault?

Your claim runs first against the at-fault driver's insurance. If that driver is uninsured or underinsured, the rideshare company's UM/UIM coverage applies while a passenger is in the vehicle: $1,000,000 for crashes before January 1, 2026, and $60,000 per person with a $300,000 per accident cap for crashes on or after that date under SB 371.

Can I sue Uber or Lyft directly after an accident in California?

The insurance required by Public Utilities Code Section 5433 applies regardless of the driver's independent contractor status under Proposition 22, and the statute preserves liability claims above the insurance limits. Most injured people recover through the mandated coverage without needing to prove an employment relationship.

How long do I have to file a rideshare accident claim in California?

Generally two years from the injury under CCP Section 335.1. If a public entity is involved, such as a crash with a city vehicle or a dangerous public road, a written government claim is due within six months under Government Code Section 911.2. App data and camera footage disappear much faster than that, so the practical deadline for preserving evidence is days, not years.

Talk to a San Diego Rideshare Accident Lawyer

Khashayar Law Group handles Uber and Lyft accident cases throughout San Diego County and across California, from offices in Little Italy, Downtown San Diego, Carmel Valley, and San Francisco. Read our guide to evaluating a San Diego rideshare accident lawyer, or start with the San Diego rideshare accident lawyer page. Call (858) 509-1550 for a free consultation.

Sources

Case results disclosure: Khashayar Law Group's published results include automobile collision recoveries described on our case results page with source notes and verification levels. Past results do not guarantee future outcomes. Every case depends on its facts, evidence, defendants, insurance coverage, venue, and applicable law. See our editorial policy. This article is general information, not legal advice, and does not create an attorney-client relationship.