By Serdar Arslan, editor · Last reviewed · 8 min read · How we research
An Uber driver with the app open and no ride accepted rear-ends you at a light. Five minutes later, with a passenger in the back seat, the same crash could be covered by a policy several times larger. That's the oddity of rideshare claims: whose insurance pays, and how much, depends mostly on what the driver's app was doing at the moment of impact. State laws call these companies transportation network companies (TNCs) and set minimum coverage for each stage of a ride. We walk through those stages, a few states' numbers, and how to file.
The three periods of a rideshare trip
Most state TNC laws divide a driver's time into periods based on app status.
| Period | Driver's status | General coverage picture |
|---|---|---|
| Period 0 | App off | Driver's personal auto policy only |
| Period 1 | App on, waiting for a ride request | Lower TNC-required limits; often primary coverage from the TNC if the driver's own policy excludes rideshare use |
| Period 2 | Ride accepted, on the way to pick up | Higher commercial limits, often $1 million in liability |
| Period 3 | Passenger in the car until drop-off | Higher commercial limits, often $1 million in liability, plus UM/UIM in many states |
The exact amounts and the coverage that applies are set by state law and by the TNC's policy. Below are examples from official sources.
Examples of state requirements
California
The California Public Utilities Commission (CPUC) summarizes these minimums:
- Period 1 (app open, waiting for a match): $50,000 per person and $100,000 per incident for death or injury, $30,000 for property damage, plus $200,000 in excess coverage per occurrence.
- Period 2 (match accepted, before pickup): $1,000,000 in primary commercial coverage.
- Period 3 (passenger in the vehicle): $1,000,000 in primary commercial coverage, plus $1,000,000 each in uninsured and underinsured motorist coverage from when the passenger enters until they exit.
Arizona
Arizona's statute, A.R.S. § 28-4038, sets:
- Logged in but not providing services: $25,000 per person, $50,000 per accident for bodily injury or death, and $20,000 for property damage.
- Providing transportation network services: at least $250,000 per incident in primary commercial liability coverage, rising to $1,000,000 per incident when a passenger is in the vehicle.
- Primary commercial uninsured motorist coverage at set minimums during that period.
Massachusetts
The Massachusetts 2024 TNC annual report describes:
- Period 1: $50,000 per person and $100,000 per accident for bodily injury, $30,000 for property damage, and $8,000 in personal injury protection.
- Periods 2 and 3: $1,000,000 per occurrence for bodily injury and property damage liability, and $8,000 in personal injury protection.
- Uninsured auto bodily injury coverage is required in each period.
Other states, including Texas, have their own TNC insurance laws. Check your state's statute or insurance department for current amounts. These figures are legal minimums. A TNC's actual policy may provide more, but you shouldn't assume it does.
Why Period 1 matters
Period 1 is where coverage gaps most often appear. Many personal auto policies exclude coverage while you're using your car for paid rides. When the app is on but no ride has been accepted, the driver's personal insurer may deny the claim, and the TNC's coverage is at lower limits. Some drivers buy a rideshare endorsement from their own insurer to fill this gap.
State laws generally say personal policies don't have to cover TNC periods unless they expressly do. Arizona's statute, for example, says this directly.
How to find out the driver's app status
Expect an argument about this early on. Ways to pin it down:
- Passenger's own app. If you were a passenger, your trip receipt shows the ride details, and you were in Period 3.
- Ask the driver at the scene whether the app was on and whether they had accepted a ride.
- Photos of the driver's phone screen, if they'll let you.
- Trade dress. Note any Uber or Lyft sign in the windshield.
- The police report. Ask the officer to note whether the driver was working.
- The TNC's records. The company keeps app logs. A lawyer can request them, and insurers will review them.
Drivers in most states are required to carry proof of TNC insurance while logged in. Ask to see it.
If you were a passenger
Passengers are often in the strongest position because the highest coverage applies in Period 3.
- Get medical care and call police.
- Take screenshots of your trip in the app.
- Report the crash through the app's safety or help features.
- Get the names and insurance information of every driver involved.
- Expect to deal with more than one insurer: the TNC's insurer and, if another driver caused the crash, that driver's insurer.
If another driver caused the crash and has low limits, the TNC's UM/UIM coverage may apply in states that require it during Period 3.
If you were hit by a rideshare driver
If you were in another car, on foot, or on a bike:
- Ask the driver if they were logged into a rideshare app, and whether they had a passenger or had accepted a ride
- Get their personal insurance information and ask about their TNC coverage
- Photograph any rideshare signs on the vehicle
- File claims with both the driver's personal insurer and the TNC's insurer if you're unsure which applies
Your own coverage, such as collision, PIP, or UM, may also help, especially if the rideshare coverage is disputed.
If you're the rideshare driver
If you were driving for a TNC and got hurt:
- Report the crash to the TNC through the app immediately
- Notify your personal auto insurer, even if you think they'll deny coverage
- Know your status: liability coverage protects others, and coverage for your own injuries or vehicle may depend on optional coverages and the TNC's policy
- Many TNC drivers are classified as independent contractors, which affects whether workers' compensation applies; rules vary by state
Who might be responsible
Depending on the facts, claims may involve:
- The rideshare driver and the TNC's insurance
- The driver's personal insurer, if the app was off or the policy covers rideshare use
- Another driver who caused the crash
- Your own UM/UIM coverage
Each state's fault rules still apply, so your share of fault can affect any recovery. See comparative fault explained.
Common hurdles
- Disputes about app status. Insurers may disagree about which period applied.
- Multiple insurers pointing at each other. Keep records and file with each one in writing.
- Large-company claims processes. TNC claims are often handled by third-party administrators. Keep claim numbers and the adjuster's contact information.
- Arbitration clauses in the rider terms of service may affect disputes with the TNC itself, though they generally don't change what an insurer owes under state law.
Rideshare claim checklist
- ☐ Medical care and police report
- ☐ Screenshot trip details (passengers)
- ☐ Driver's name, license, plate, personal insurer
- ☐ Ask about and document app status
- ☐ Photograph rideshare signs and the scene
- ☐ Report in the app and to every insurer
- ☐ Keep a call log for each claim number
- ☐ Note your filing deadline
It comes back to the app
Almost every rideshare claim turns on one fact: was the driver logged off, waiting for a request, heading to a pickup, or carrying a rider? Period 1 has the lowest limits and the most gaps. Periods 2 and 3 usually carry commercial coverage, often $1 million in liability, and some states add UM/UIM while a passenger is aboard. Lock down the app status in the first few days, with screenshots, the police report, and the driver's own answer at the scene. When injuries are serious and three insurers are pointing at each other, a lawyer who can subpoena the TNC's app logs is worth a consultation.