Uber and Lyft accident insurance in California: who pays in 2026
By Bejan Broukhim, Attorney · Updated October 18, 2026 · 6 min read
Short answer: in California, an Uber or Lyft crash is paid from the rideshare company’s insurance once a driver has accepted a trip, with $1 million in liability coverage when the rideshare driver is at fault. Since January 1, 2026, Senate Bill 371 cut the uninsured and underinsured motorist coverage that protects passengers and drivers from $1 million to $60,000 per person and $300,000 per accident. Broukhim Legal PC, an Uber and Lyft accident law firm in downtown Los Angeles, reviews which policy applies in a free case review.
Who pays depends on two questions: what the rideshare app was doing at the moment of the crash, and who caused it.
Question 1: What was the app doing?
California’s rules for transportation network companies (TNCs), in Public Utilities Code section 5433, divide a rideshare driver’s time into three stages.
| Stage | What is happening | Coverage that applies |
|---|---|---|
| App off | Personal driving | The driver’s personal auto policy only |
| Period 1 | App on, waiting for a request | Lower TNC contingent limits; many personal policies exclude this time |
| Period 2 | Trip accepted, driving to the pickup | TNC policy, $1 million liability |
| Period 3 | Passenger in the car until drop-off | TNC policy, $1 million liability |
The app data, timestamps and trip receipts prove which stage applied. Uber and Lyft keep this data, so a written request to preserve it goes out early in every rideshare accident claim.
Question 2: Who caused the crash?
The rideshare driver was at fault
If the driver was in Period 2 or 3, injured passengers, other drivers, cyclists and pedestrians claim against the $1 million TNC liability policy. SB 371 did not change this coverage.
Another driver was at fault
The injured person claims first against the at-fault driver’s policy. In California the minimum is $30,000 per person and $60,000 per accident (Senate Bill 1107, effective January 1, 2025), often far below the cost of a serious injury. The gap used to be filled by $1 million of rideshare uninsured and underinsured motorist (UM/UIM) coverage. That is the coverage SB 371 reduced.
A hit and run driver
A driver who leaves the scene is treated as uninsured. The UM coverage pays, now subject to the lower SB 371 limits. See our hit and run page for what to do in the first two weeks, while camera footage still exists.
What SB 371 changed in 2026
- Signed: October 3, 2025, alongside AB 1340, which allows rideshare drivers to unionize.
- Effective: January 1, 2026.
- UM/UIM during a trip: reduced from $1,000,000 to $60,000 per person and $300,000 per accident, provided by the TNC.
- Liability when the rideshare driver is at fault: still $1,000,000 during Periods 2 and 3.
For a passenger hit by an underinsured driver, the realistic recovery now comes from three places: the at-fault driver’s policy, the reduced rideshare UM/UIM coverage, and the passenger’s own auto policy if they have UM/UIM coverage. Checking your own policy matters more than it did before 2026.
Who is covered
- Passengers: covered by the TNC policy during the trip, whoever caused the crash.
- Other drivers, cyclists and pedestrians: covered by the TNC liability policy when the rideshare driver caused the crash in Period 2 or 3. See our pedestrian accident and bicycle accident pages.
- Rideshare drivers: drivers are usually treated as independent contractors, so an injured driver often relies on UM/UIM coverage and any occupational accident policy the company offers.
Steps after an Uber or Lyft crash in Los Angeles
- Call 911 and get medical care.
- Screenshot the trip in the app, including the driver’s name, the plate and the time.
- Report the crash in the app, but keep it to the facts.
- Photograph the vehicles, the scene and your injuries, and get witness contacts.
- File the DMV SR-1 report within 10 days if anyone was hurt or damage exceeds $1,000.
- Do not give a recorded statement to the TNC’s insurer before getting advice.
- Track the two-year lawsuit deadline, and six months if a public bus or a city road was involved. Our guide to California personal injury deadlines lists them all.
The full checklist is in what to do after a car accident in Los Angeles.
Talk to an Uber and Lyft accident lawyer in Los Angeles
Broukhim Legal PC handles rideshare, car accident and uninsured motorist claims across Los Angeles County on a contingency fee, so there is no fee unless money is recovered. Attorney Bejan Broukhim is licensed by the State Bar of California (No. 183036). Call (310) 731-4824 or request a free case review, in English or Spanish.
Frequently asked questions
How much insurance does Uber or Lyft have in California?
Once a driver accepts a trip and until drop-off, the rideshare company’s policy provides $1 million in liability coverage if the rideshare driver causes the crash.
What did SB 371 change?
From January 1, 2026, the rideshare uninsured and underinsured motorist coverage during a trip dropped from $1 million to $60,000 per person and $300,000 per accident. Liability coverage did not change.
Who pays if another driver hits my Uber?
The at-fault driver’s insurance pays first. If that policy is too small, the rideshare UM/UIM coverage and your own UM/UIM coverage can apply.
Am I covered if the driver’s app was on but no ride was accepted?
Lower contingent limits apply during that period, and many personal auto policies exclude it. The app’s trip data shows which period applied.
Related reading
About the author. Bejan Broukhim is a California attorney (State Bar No. 183036) who leads Broukhim Legal PC, a personal injury and mass tort practice at 550 S Hill Street in downtown Los Angeles. This article is general information about California law, not legal advice, and reading it does not create an attorney-client relationship.
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