If you are injured as a passenger in an Uber or Lyft, a $1 million commercial liability policy generally applies, because the trip was active (Periods 2–3). California sets rideshare coverage by what the driver was doing at the time of the crash, and as a passenger you typically bear no fault — which strengthens your claim.
A responsible night out across the Sunset Strip, the clubs of Hollywood, or the restaurants of Beverly Hills often ends the smart way — in an Uber or Lyft. But when that rideshare is involved in a collision, passengers are frequently surprised by how tangled the question of who pays becomes.
How does rideshare insurance work in California?
California regulates rideshare insurance by what the driver was doing at the moment of the crash. The framework, rooted in state law (including Public Utilities Code provisions and Assembly Bill 2293), breaks down into three periods:
- App off. The driver is not working; only their personal auto insurance applies.
- App on, no ride accepted (Period 1). Limited coverage applies — in California, generally $50,000 per person and $100,000 per accident for injuries, plus $30,000 for property damage, with an additional excess layer.
- Ride accepted or passenger aboard (Periods 2 and 3). Uber’s and Lyft’s $1 million commercial liability policy applies, along with $1 million in uninsured/underinsured motorist coverage.
What does the $1 million policy mean for me as a passenger?
If you are a passenger in a West Hollywood pickup, you are almost always in Period 3 — which means the $1 million policy is in play, and it generally covers you regardless of whether your driver or another motorist caused the crash. That is a meaningful protection. The complication arises when fault is disputed between the rideshare driver and a third party, because each driver’s insurer will try to shift responsibility to the other.
What if fault is disputed between drivers?
California’s pure comparative negligence rule (Li v. Yellow Cab Co. (1975) 13 Cal.3d 804) applies here too. If multiple drivers share blame for a Beverly Hills intersection collision, responsibility — and the corresponding insurance obligations — are divided by percentage, just as in any other car accident. As an injured passenger, you typically bear no fault, which strengthens your position considerably.
The Takeaway
Taking a rideshare home through Hollywood or Culver City remains the responsible choice. If a crash occurs, the reassuring reality is that a substantial policy usually stands behind you as a passenger. The two-year deadline under Code of Civil Procedure section 335.1 still governs, so the practical advice is the same as always: document the crash, get medical care, and do not let the insurers’ finger-pointing run out your clock. An experienced personal injury attorney can deal with the competing insurers so you do not have to.
Frequently Asked Questions
Who pays if I’m hurt in an Uber or Lyft as a passenger?
When you are a passenger during an active trip, Uber’s or Lyft’s $1 million commercial liability policy generally applies, and it typically covers you regardless of which driver caused the crash.
What are the three rideshare insurance periods in California?
Period 1 (app on, no ride): limited coverage, around $50k/$100k/$30k plus excess. Periods 2 and 3 (ride accepted or passenger aboard): a $1 million liability policy plus $1 million uninsured/underinsured coverage.
Can I sue Uber or Lyft directly?
Usually the claim is made against the applicable insurance policy rather than the company itself, because drivers are classified as independent contractors. The available coverage depends on the driver’s app status at the time of the crash.
How long do I have to file a rideshare accident claim?
Generally two years from the date of the crash under Code of Civil Procedure section 335.1. Documenting the crash and the driver’s app status early helps avoid disputes later.