Understanding Uber’s Three Insurance Periods in California (What Actually Applies)
If you drive for Uber or Lyft, or you’ve ever climbed into the back of one, this is the kind of thing you need to understand before something goes wrong. Insurance coverage for rideshare trips in California is not a simple yes-or-no question. It changes minute by minute based on what the driver is doing in the app, and a misstep can leave you exposed to tens of thousands of dollars in losses. We’ll walk you through every period in plain language, including the major changes that took effect in 2026.
In California, insurance coverage for rideshare vehicles is not a simple on/off switch. It’s a shifting scale that changes based on the driver’s activity within the app. These are known as the Three Periods of rideshare insurance, originally established by AB 2293 (effective July 1, 2015) and recently overhauled by Senate Bill 371 (operative January 1, 2026).
This guide decodes the legal periods, explains the notorious “gap coverage,” and breaks down exactly how the new 2026 laws have changed the protections for passengers.
A Brief History: Why AB 2293 Was Passed
California’s three-period system didn’t come out of nowhere. It was born out of tragedy.
On New Year’s Eve 2013, a six-year-old girl named Sophia Liu was struck and killed in a San Francisco crosswalk by an Uber driver. The driver had the Uber app on and was waiting for a ride request, but Uber refused to provide insurance coverage on the grounds that the driver wasn’t actively transporting a passenger. The driver’s personal insurance also denied the claim because he was using the vehicle commercially.
Sophia’s family was caught in the exact “gap” we now call Period 1. Her death sparked outrage and a public reckoning about how rideshare insurance should work. The result was AB 2293, signed into law in 2014 and effective July 1, 2015, which created the three-period framework California still uses today.
The law is now codified primarily under California Public Utilities Code §§ 5431 and 5433, which define Transportation Network Companies (TNCs) and require minimum levels of insurance during each period. California Insurance Code § 11580.1 governs personal auto policies and explicitly allows insurers to exclude coverage when a vehicle is being used for “public or livery conveyance,” which is the language that creates the gap.
Why Your Personal Auto Policy Likely Won’t Pay
Before diving into the periods, it’s critical to understand why a driver’s personal insurance is often useless in rideshare accidents.
Almost every personal auto policy in California contains a Commercial Use Exclusion, often based on standard ISO (Insurance Services Office) policy language. This clause states that coverage is void if the vehicle is being used “for hire” or to transport people or goods for money.
The Trap. If a driver gets into an accident while “Online” but never told their personal insurer they drive for Uber, the insurer can deny the claim entirely, leaving the driver personally on the hook for tens of thousands of dollars.
The Solution. Drivers should buy a specific Rideshare Endorsement (Gap Coverage) on their personal policy.
The Risk of Policy Rescission
Here’s something most drivers don’t know. If you fail to disclose rideshare activity to your personal insurer, the consequences can go beyond a single denied claim. Your insurer may retroactively rescind your entire policy on the grounds of material misrepresentation, treating it as if it never existed. That can leave you exposed not just for the rideshare crash, but potentially for past accidents too. Always disclose your rideshare activity in writing.
Period 0: The App Is Off
Before we get to Period 1, here’s the simplest situation. If the Uber or Lyft app is completely off and the driver is just running errands, picking up groceries, or driving the kids to school, they are treated like any other private driver. Their personal auto insurance is in full effect. Uber and Lyft are not involved.
Period 1: App On, Waiting for a Request (The “Gap”)
Status: The driver has turned the app ON and is cruising or parked, waiting for a ride request. There is no passenger and no accepted trip.
This is the most dangerous period for insurance because it falls into a coverage gap. The driver is technically working (so personal insurance denies the claim), but Uber doesn’t consider them on a trip (so the million-dollar policy doesn’t apply).
Coverage Limits (California State Minimums under PUC § 5433):
- $50,000 for bodily injury (per person)
- $100,000 for bodily injury (per accident)
- $30,000 for property damage
What’s missing? Uber provides zero collision coverage for the driver’s own car during Period 1. If the driver wrecks their vehicle while waiting for a ping, Uber pays nothing to fix it.
Period 2: En Route to Pick Up
Status: The “Ping!” happens. The driver has accepted a ride request and is driving toward the passenger.
The moment the driver hits “Accept,” coverage significantly expands.
Coverage:
- Liability: Jumps to $1 million combined single limit for third-party injuries.
- Contingent collision: Uber’s coverage kicks in (typically with a $2,500 deductible), but only if the driver carries collision coverage on their personal policy. If they don’t, no collision coverage applies.
New for 2026 (SB 371): Senate Bill 371 introduced an additional $200,000 excess liability layer specifically for Period 2. This addresses a long-running concern that drivers often drive most aggressively while rushing to a pickup.
Period 3: Trip in Progress (Passenger On Board)
Status: The passenger has entered the vehicle (or the ride has officially started in the app) and continues until the passenger exits.
Coverage:
- Liability: $1 million in coverage if the Uber driver causes an accident.
- Contingent collision: Same as Period 2, with the same $2,500 deductible and the same requirement that the driver carries collision on their personal policy.
- UM/UIM: This is where 2026 changed everything. See below.
How SB 371 (2026) Changed UM/UIM Coverage in Periods 2 and 3
This is the most important update for 2026.
For years, California required Uber and Lyft to carry $1 million in Uninsured/Underinsured Motorist (UM/UIM) coverage during Periods 2 and 3. That meant if a drunk driver with no insurance smashed into your Uber, you could claim up to $1 million from Uber’s policy for your medical bills.
As of January 1, 2026, SB 371 changed this:
- Old Limit: $1,000,000 per accident
- New 2026 Limit: $60,000 per person / $300,000 per accident
The Impact. If you suffer a catastrophic injury caused by a hit-and-run or uninsured driver while riding in an Uber, you are no longer protected by a million-dollar safety net. You are capped at $60,000 from Uber per person. After that, you must rely on your own personal health insurance or your own auto UM coverage.
Riding in an Uber in 2026 is significantly riskier for passengers than it was in 2025.
Which Insurers Offer Rideshare Endorsements in California?
If you drive for Uber or Lyft, the most important step you can take to protect yourself is buying a rideshare endorsement on your personal policy. As of 2026, several major California insurers offer some form of rideshare add-on, typically priced between $15 and $25 per month:
- State Farm
- GEICO
- Farmers
- Mercury
- Allstate
Pricing and exact coverage vary significantly. Always get the terms in writing and confirm exactly when coverage activates and what gaps remain.
Lyft vs. Uber: Are There Coverage Differences?
Both Uber and Lyft are subject to AB 2293 and the same PUC requirements, so the statutory minimums apply equally. However, specific contract terms can vary in:
- Deductible amounts for contingent collision coverage
- The claims process and timelines
- How each company defines when a “trip” technically starts and ends
In practice, the period framework is the same. The fine print is where small differences can matter.
Common Disputes: Proving Which Period the Driver Was In
In many crashes, the specific period is hotly contested.
Scenario. A driver hits a pedestrian. The driver claims they were in Period 2 (en route to a ride) so the $1 million policy applies. Uber argues the driver had just cancelled the ride or hadn’t accepted it yet, placing them in Period 1 (only $50K coverage).
The Evidence: App Logs. These disputes are settled by forensic data. Attorneys must subpoena the electronic trip logs (metadata) from Uber’s servers, which show the exact millisecond a ride was accepted, cancelled, or ended. This evidence is time-sensitive, and a litigation hold letter should be sent to Uber as quickly as possible after a serious crash to make sure the data is preserved.
Injured by a Rideshare Driver? Steps to Take Immediately
Whether you’re a passenger, pedestrian, cyclist, or another motorist hit by an Uber or Lyft, here’s what to do:
- Call 911 and get medical care. Even if injuries seem minor.
- Take screenshots inside the app immediately if you were a passenger. The trip ID, driver name, vehicle, and timestamps are gold.
- Photograph the scene. Vehicles, license plates, the driver’s app screen if possible, road conditions, and your injuries.
- Get the driver’s full name, license, and insurance. Don’t accept “Uber will handle it” as an answer.
- Get witness contact info.
- Don’t speak to Uber’s or any insurance company’s claims department before talking to an attorney.
- Contact a rideshare injury attorney quickly so a litigation hold can be sent to Uber to preserve trip data.
Frequently Asked Questions
What is the “gap” in rideshare coverage? The gap refers to Period 1 (App On, Waiting). The driver’s personal insurance denies coverage because they’re working, but Uber’s commercial policy is very low ($50K) and offers no collision protection. Drivers should buy a rideshare endorsement to bridge this gap.
Whose insurance pays if the Uber app is off? If the app is off (Period 0), the driver is just a regular citizen and their personal auto policy is solely responsible. Uber is not involved.
Can I sue Uber if the driver was in Period 1? It’s difficult. Uber treats drivers as independent contractors, and in Period 1 there’s no specific assigned ride, so courts often rule that Uber is not vicariously liable beyond the statutory minimums.
What happens if my personal insurer rescinds my policy after discovering rideshare use? Rescission can leave you personally liable for damages beyond Uber’s statutory minimums. This is why disclosure and a rideshare endorsement are essential.
Does the three-period system apply to Lyft the same way it applies to Uber? Yes. AB 2293 applies to all TNCs operating in California. Lyft is subject to the same minimums, though specific contract terms may vary.
How do I get Uber’s trip data to prove which period applied? This typically requires a litigation hold letter and a formal subpoena of Uber’s server-side records. An attorney can help preserve this time-sensitive evidence.
Can a rideshare driver be personally sued for amounts exceeding the TNC’s coverage limits? Yes. TNC coverage is not unlimited. If damages exceed policy limits, especially in Period 1, the driver’s personal assets may be exposed.
What is a rideshare endorsement and do I need one as a driver? It’s an add-on to your personal auto policy that extends coverage into Period 1 and coordinates with TNC coverage. It’s strongly recommended for any rideshare driver.
Does UM/UIM coverage apply if I’m a passenger injured by a third-party driver during a rideshare trip? Yes, but as of January 1, 2026, UM/UIM coverage from Uber and Lyft has been reduced to $60,000 per person and $300,000 per accident, down from the previous $1 million.
