Liability in a rideshare accident depends heavily on the “period” the driver was in at the time of the crash. Whether the app was off, the driver was waiting for a request, or a passenger was in the vehicle determines which insurance policy applies. This page breaks down these three critical periods to help victims understand how to secure maximum coverage.
Disclaimer:
The information provided in this article is for general informational and educational purposes only. It is not intended to constitute legal advice and does not create an attorney-client relationship. Statutes of limitations and legal rights can vary based on specific facts and circumstances. You should not rely on this information without consulting a qualified attorney about your particular situation.
If you drive for Uber or Lyft—or you’re injured as a passenger—you might assume coverage is simple: the app is on, so insurance applies.
That assumption is wrong.
In California, rideshare insurance operates on a three-period system, where coverage changes based on what the driver is doing inside the app at the exact moment of the crash. These rules were established under AB 2293 and remain the foundation of rideshare coverage today.
Understanding which period applies is often the difference between a fully covered claim and a serious coverage fight.
Most personal auto policies contain a commercial use exclusion. If a vehicle is being used “for hire,” the insurer can deny coverage.
That creates an immediate problem in rideshare cases.
If a driver is logged into Uber but does not carry a rideshare endorsement, their personal insurer may deny the claim entirely—even though the driver is not yet carrying a passenger.
This is why the “period” analysis matters so much.
Status:
The driver is logged into the Uber app but has not yet accepted a ride request.
This is the most dangerous insurance phase—for drivers and injured third parties alike.
Coverage Provided by Uber/Lyft
During Period 1, Uber provides only limited liability coverage:
What Is Missing
If the driver causes a serious crash in Period 1, those limits are often exhausted immediately.
Status:
The driver has accepted a ride and is driving to the pickup location.
At this moment, the commercial transaction has begun.
Coverage During Period 2
This is a major step up from Period 1 and is why insurers often fight over whether the ride was truly “accepted” at the time of impact.
Status:
The passenger has entered the vehicle and the ride is active.
This is the most protective phase for passengers.
Coverage During Period 3
If another driver—especially a hit-and-run or uninsured driver—causes the crash, this UM/UIM coverage is often the primary recovery source for injured passengers.
Important correction:
As of now, California has not reduced this $1 million UM/UIM requirement for Uber or Lyft. Any claim that this coverage drops to $60,000 per person in 2026 is not supported by current law.
Common Coverage Disputes: Which Period Applies?
This is where rideshare cases get contentious.
Typical Scenario
A pedestrian or motorcyclist is struck.
The driver claims they were en route to a pickup (Period 2).
Uber argues the ride was not yet accepted—or had just been canceled (Period 1).
How This Is Proven
These cases are resolved through forensic app data, including:
Milliseconds matter. Coverage can change instantly.
If the Uber app is off entirely, the driver is treated like any other motorist.
What is the rideshare “gap”?
The gap is Period 1—when the app is on but no ride is accepted. Personal insurance often denies coverage, and Uber’s policy is limited.
Does Uber cover damage to the driver’s car in Period 1?
No. There is no collision coverage during Period 1 unless the driver has a rideshare endorsement on their personal policy.
Whose insurance pays if the app is off?
Only the driver’s personal auto insurer. Uber is not involved.
Can Uber be sued directly in Period 1?
Usually not for vicarious liability. Courts often limit Uber’s responsibility to the statutory insurance coverage unless separate negligence claims apply.
Bottom Line
Uber insurance is not “on or off.”
It is conditional, time-sensitive, and aggressively disputed.
Understanding the three periods—and proving which one applies—is often the most important issue in a rideshare injury case.
Reminder:
This content is for informational purposes only and should not be relied upon as legal advice. Every case is different. If you have questions about your rights or deadlines, consult a qualified attorney promptly.
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