Rideshare crashes involve layered commercial insurance that changes with the driver's app status — and a growing body of litigation alleges platforms failed to protect passengers from driver-perpetrated assault.
Uber, Lyft, and other transportation network companies now account for billions of trips each year. When a crash occurs — whether you were a passenger, rideshare driver, pedestrian, or occupant of another vehicle — determining coverage is more complicated than a typical car accident because rideshare companies carry layered commercial policies that shift with the driver's app status.
Rideshare companies generally provide up to $1 million in third-party liability coverage while a driver is en route to a pickup or transporting a passenger, with significantly lower limits when the app is on but no ride is active. Claims often require untangling which coverage tier applied at the moment of the crash — and insurers frequently dispute it.
Separately, thousands of claims allege Uber and Lyft failed to implement adequate safety measures to protect passengers from driver-perpetrated sexual assault and harassment. Those claims have been consolidated in a federal multidistrict litigation in the Northern District of California and in state coordinated proceedings.
Accident claims proceed individually against layered commercial insurance policies. Separately, thousands of passenger-assault claims against Uber and Lyft are consolidated in a federal MDL in the Northern District of California and in California state coordinated proceedings, with early bellwether activity underway.
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