Rideshare Accident in California: The Three-Period Coverage Framework and SB 371 Explained.

Rideshare Accident Law in California: The Three-Period Framework

Uber and Lyft accidents in California are governed by a mandatory insurance framework that divides coverage into three distinct periods based on the driver's app status at the time of the crash — and knowing which period applied when you were injured determines which insurer is responsible and how much coverage is available.

California Public Utilities Code § 5433 requires Transportation Network Companies (TNCs) like Uber and Lyft to maintain specific insurance coverage that varies based on whether the driver's app was on, a ride was accepted, or the passenger was in the vehicle. Period 1 (app off): the driver's personal auto policy applies. Period 2 (app on, no accepted ride): contingent coverage of $50,000 per person applies. Period 3 (ride accepted or passenger in vehicle): primary liability coverage of $1,000,000 applies for crashes caused by the rideshare driver.

Senate Bill 371, effective January 1, 2026, reduced the mandatory UM/UIM coverage that TNCs must maintain for passengers during Period 3 from $1,000,000 to $60,000 per person when the crash was caused by a third-party uninsured or underinsured driver — a significant change that directly limits recovery for passengers injured by uninsured third-party drivers. The $1,000,000 primary liability coverage for crashes caused by the rideshare driver remains unchanged.

What to Do After a Rideshare Accident in California

Step-by-step guidance for protecting your legal rights and maximizing insurance coverage after an Uber or Lyft accident in California.

1

Screenshot the Uber or Lyft app immediately

Capture the active ride, driver name, vehicle information, and timestamp. This is the single most important evidence step — it establishes which insurance period was active and which coverage applies.

2

Call 911

Request law enforcement. The police report's documented crash time, combined with your app screenshot, establishes the insurance period determination.

3

Document all vehicles, damage, and parties

Photograph all vehicles and damage. Collect information from the rideshare driver and any third-party drivers involved.

4

Report through the Uber or Lyft app

Create a formal TNC incident record. Make factual reports only — do not speculate about fault or characterize injury severity before receiving medical evaluation.

5

Seek same-day medical evaluation

Given SB 371's $60,000 per person UM cap for third-party uninsured driver crashes, prompt medical documentation is critical to establishing the full scope of damages before any settlement discussion.

6

Consult an attorney before speaking to any insurer

The three-period coverage framework, SB 371's new UM limits, and the interaction between TNC coverage and your personal auto policy require coordinated legal navigation before any settlement is accepted.

Your Rights as a Rideshare Passenger in California

The Right to Period 3 Primary Liability Coverage

During Period 3 — when you are in the vehicle and the ride is active — the TNC must maintain primary liability coverage of $1,000,000 per occurrence for crashes caused by the rideshare driver. This coverage is primary to the driver's personal auto policy regardless of the driver's independent contractor classification.

The Right to UM/UIM Coverage After SB 371

Effective January 1, 2026, SB 371 reduced mandatory TNC UM/UIM coverage during Period 3 for third-party uninsured or underinsured driver crashes from $1,000,000 to $60,000 per person. Passengers whose damages exceed $60,000 from a third-party uninsured driver crash may need to access their own personal auto UM policy (if they carry one) to supplement this amount.

The Right to Direct Claims Against Identified At-Fault Parties

The TNC insurance framework does not limit your right to pursue the full amount of your damages against any identified at-fault third party directly. If a third-party driver caused the crash, their liability coverage is the primary source regardless of the TNC framework — the TNC's UM coverage applies only when the third-party driver is uninsured or underinsured.

How Fault Is Determined in Rideshare Accidents

Fault in rideshare accidents is determined under California's standard pure comparative negligence framework — the same principles that apply to any vehicle accident. The TNC insurance framework determines which insurer is responsible for the at-fault party's coverage, but does not change how fault is allocated among the parties.

When the rideshare driver caused the crash, the TNC's $1,000,000 primary liability policy covers the claim and the standard negligence analysis applies to the driver's conduct. When a third-party driver caused the crash, that driver's liability insurer is the primary source of coverage — the TNC's UM coverage applies only when the third-party driver is uninsured or underinsured relative to the injured passenger's damages. The app screenshot establishing Period 3 status determines which framework applies.

Insurance Considerations in Rideshare Accident Claims

Three insurance sources may be relevant in a California rideshare accident: the TNC's mandatory coverage under PUC § 5433 (primary for rideshare driver fault; UM/UIM limited to $60,000 per person post-SB 371 for third-party uninsured crashes); the at-fault third party's own liability coverage (primary when a third-party driver caused the crash); and the passenger's own personal auto UM/UIM policy (may supplement the TNC's $60,000 UM cap when personal auto damages exceed that amount). The interaction among these three sources requires careful analysis before any settlement is accepted — particularly for passengers with serious injuries whose damages may exceed SB 371's $60,000 UM cap.

Evidence That Matters in Rideshare Accident Cases

The app screenshot establishing the active ride at the time of the crash is the single most important piece of evidence in any California rideshare accident claim — it determines the insurance period and the applicable coverage layer. The police report documenting the crash time confirms the app timestamp. Standard accident evidence (photographs, witness statements, medical records, police report) applies in rideshare cases as in all accident injury claims. For crashes caused by the rideshare driver, the TNC's internal incident report and the driver's record with the platform may reveal prior safety violations relevant to negligent entrustment or negligent hiring claims against the TNC itself.