This article provides general legal information for educational purposes. It is not legal advice and does not create an attorney-client relationship. Consult a licensed attorney in your state for guidance specific to your situation.
In California, the amount of insurance coverage available after a rideshare accident depends entirely on which TNC (Transportation Network Company) coverage "period" was active at the moment of the crash. Understanding the three periods — and which applies to your situation — determines who pays and how much coverage is available.
Overview of TNC Coverage Periods
California Public Utilities Code section 5430 et seq. and CPUC regulations require Uber and Lyft to maintain specific insurance for their drivers. The coverage is not constant — it changes based on the driver's status in the app at the time of the accident. There are three defined periods plus an offline state.
Period 1: App On, No Ride Accepted
Period 1 begins when the driver activates the TNC app and becomes available to accept rides, but has not yet accepted a specific ride request. During Period 1, the TNC's contingent liability coverage applies: $50,000 per person / $100,000 per accident / $30,000 property damage. This coverage is contingent — it applies only if the driver's personal auto policy does not cover the loss. Many personal auto policies exclude coverage during TNC period 1, making the TNC's contingent coverage the actual coverage source for many period 1 accidents.
Period 2: Ride Accepted, En Route to Passenger
Period 2 begins when the driver accepts a specific ride request and is en route to pick up the passenger. During Period 2, $1 million primary liability coverage from the TNC (Uber or Lyft) applies. "Primary" means it pays first, before any personal auto policy. Uninsured/underinsured motorist coverage of $1 million also applies during Period 2.
Period 3: Passenger in Vehicle
Period 3 covers the period from passenger pickup through drop-off. This is the maximum coverage period: $1 million primary liability from the TNC, $1 million UM/UIM coverage, and contingent comprehensive and collision coverage (if the driver's personal policy has those coverages). Period 3 coverage applies to injuries to the passenger, to the driver, and to third parties injured in the crash.
When the Driver Has No Personal Coverage
During all periods, the TNC coverage structure accounts for the possibility that the driver's personal auto insurer denies coverage because of the TNC exclusion common in personal auto policies. During Period 1, the TNC contingent coverage fills the gap. During Periods 2 and 3, the TNC's primary $1 million coverage applies regardless of the driver's personal policy.
Frequently Asked Questions
What insurance covers a rideshare accident in California?
Coverage depends on the TNC period. Period 1 (app on, no ride): $50K/$100K contingent. Periods 2 and 3 (ride accepted or passenger aboard): $1 million primary from Uber or Lyft.
If I was an Uber passenger in an accident, what coverage applies?
Period 3 — $1 million primary liability from Uber, plus UM/UIM coverage. This applies from the moment you entered the vehicle until you exited at the destination.
What if the Uber driver was at fault and I was in another car?
The coverage period determines available limits. If the driver had a passenger, Period 3 ($1M primary) applies. If the driver was en route to pick up a passenger, Period 2 ($1M primary) applies. If the driver was in Period 1, the TNC's contingent $50K/$100K applies.
Does Uber or Lyft cover accidents between rides?
Period 1 (app on, waiting for ride request): Yes — contingent coverage of $50K/$100K/$30K applies if the driver's personal policy doesn't cover the loss. App completely off: Only the driver's personal auto policy applies; no TNC coverage.
How do I find out which TNC period applied to my accident?
Request the trip data from Uber or Lyft through their claims process. The app logs show the precise time of each period transition — app activation, ride acceptance, pickup, and dropoff — against which the accident timestamp can be matched.
Rideshare Accident Claims
Full guide to California rideshare accident claims for passengers, other drivers, and cyclists.
California Uninsured Motorist Coverage
UM/UIM coverage interacts with TNC period coverage in rideshare accident claims.
Rideshare Accident Insurance Coverage
Deeper dive into the claims process after a rideshare accident.