Uber & Lyft Accident Insurance CO | Conduit

You got hurt in an Uber. Or a Lyft. Or by one. And now you’re trying to figure out a simple question: who pays?

The answer should be simple. It’s not. Rideshare companies have engineered an insurance structure so confusing that most people—including a disturbing number of lawyers—don’t fully understand it. That confusion isn’t a bug. It’s a feature.

Here’s how it actually works in Colorado.

The Three Phases of Rideshare Insurance

Uber and Lyft don’t provide a single, straightforward insurance policy. They provide tiered coverage that shifts based on what the driver was doing at the exact moment of the crash. There are three phases, and the difference between them can mean the difference between $50,000 and $1,000,000 in available coverage.

Phase 1: App Off

The driver isn’t logged into the app. As far as Uber or Lyft is concerned, this person is just a regular driver in a personal car. Coverage comes entirely from the driver’s personal auto insurance.

Here’s the problem: many rideshare drivers carry minimum Colorado coverage—$25,000 per person / $50,000 per accident. If you’re seriously hurt, that evaporates fast. One ER visit and a surgery can blow past $25,000 before you leave the hospital.

Phase 2: App On, Waiting for a Ride Request

The driver has the app open and is waiting to be matched with a passenger. Now Uber/Lyft’s contingent liability coverage kicks in—but it’s limited:

• $50,000 per person for bodily injury
• $100,000 per accident for bodily injury
• $25,000 for property damage

This coverage is contingent—meaning it only applies if the driver’s personal insurance denies the claim first. And here’s where the trap door opens: many personal auto policies exclude commercial activity like rideshare driving. So the driver’s personal insurance denies the claim because they were driving for Uber, and Uber’s Phase 2 coverage is capped at $50K per person.

If you’re a pedestrian or another driver hit by a rideshare driver in Phase 2, you could be stuck with inadequate coverage for a serious injury.

Phase 3: En Route to Pickup or Carrying a Passenger

Once the driver accepts a ride request and is heading to pick someone up—or has a passenger in the car—the full rideshare coverage activates:

• $1,000,000 in third-party liability
• $1,000,000 in uninsured/underinsured motorist coverage
• Contingent collision and comprehensive coverage

This is where the real money is. A million dollars in coverage means serious injuries can be fully compensated. But the insurance company will fight like hell over which phase the driver was in at the moment of impact—because the difference between Phase 2 ($50K) and Phase 3 ($1M) is enormous.

The Phase Dispute—Where Cases Are Won and Lost

Insurance companies know that the phase determination is everything. So they’ll argue the driver was in Phase 2 (lower coverage) when you say they were in Phase 3 (higher coverage). Or they’ll argue the app was off entirely.

The evidence that resolves this dispute is digital:

• App data—Uber and Lyft maintain detailed logs of when drivers are online, when rides are accepted, GPS locations, and trip status. This data is the smoking gun, but it requires a litigation hold letter sent quickly to prevent the company from claiming the data was “routinely deleted.”
• GPS and trip records—timestamps showing the driver’s status at the exact time of the crash
• Cell phone records—showing whether the app was active
• Passenger testimony—if there was a passenger in the car, Phase 3 is confirmed

An attorney who handles rideshare cases knows to demand this data preservation immediately. Waiting even a few weeks can allow critical evidence to be overwritten.

Who Are You Actually Filing a Claim Against?

This is where it gets complicated. In a normal car accident, you file a claim against the other driver’s insurance. In a rideshare accident, there can be three or more insurance policies in play:

1. The rideshare driver’s personal auto insurance
2. Uber or Lyft’s commercial policy (underwritten by companies like James River Insurance or Progressive)
3. Your own UM/UIM coverage (if the other driver was uninsured or underinsured)
4. The other driver’s insurance (if a third-party driver caused the crash)

Each insurer will point fingers at the others. The rideshare company’s insurer says the driver’s personal policy should pay. The personal insurer says the commercial exclusion applies. Meanwhile, you’re stuck in the middle with medical bills piling up.

This insurance shell game is exactly why rideshare accident cases need an attorney who understands the coverage structure. An experienced rideshare accident lawyer knows which policy to target and how to force the right insurer to the table.

Special Situations

You Were the Uber/Lyft Passenger

This is actually the strongest position to be in. You were a paying customer in a commercial vehicle. Phase 3 coverage ($1M) definitively applies. You can claim against:

• The rideshare company’s $1M policy (if your driver was at fault)
• The other driver’s insurance (if another driver caused the crash)
• Both (if liability is shared)

You Were Hit by an Uber/Lyft Driver

Whether you were in another car, on a bicycle, or walking—the phase the driver was in at the moment of impact determines your available coverage. This is where the phase dispute battles happen.

You Were the Uber/Lyft Driver

Drivers are classified as independent contractors, not employees. This means workers’ compensation doesn’t apply. Your options include:

• Filing against the other driver’s insurance (if they caused the crash)
• Using your own UM/UIM coverage
• Uber/Lyft’s contingent collision coverage (for vehicle damage only, with a deductible)

Drivers injured by another motorist’s negligence have a standard personal injury claim against that driver—but recovering for your own vehicle damage and lost earnings while the car is in the shop requires navigating both your personal policy and the rideshare company’s coverage.

The Independent Contractor Problem

Uber and Lyft classify drivers as independent contractors specifically to avoid liability. This classification means:

• The company argues it’s not responsible for driver negligence (“we’re a technology platform, not a transportation company”)
• No workers’ comp for injured drivers
• Limited direct claims against the corporate entity

But the insurance structure partially undercuts this argument. By providing $1M in coverage during active rides, Uber and Lyft are essentially acknowledging responsibility—even if their lawyers would never phrase it that way.

What to Do After a Rideshare Accident

1. Screenshot the app. If you’re a passenger, screenshot your trip status, driver info, and ride details before the trip ends or the data disappears from your app.
2. Call 911. A police report is critical—it documents the driver’s rideshare status and the circumstances of the crash.
3. Get the driver’s personal insurance info AND note that they were driving for Uber/Lyft.
4. Photograph everything. Vehicles, injuries, the scene, the Uber/Lyft decal on the car.
5. Seek medical treatment immediately.
6. Don’t give recorded statements to any insurance company.
7. Contact an attorney who handles rideshare cases—the insurance maze requires specialized knowledge.

Frequently Asked Questions

Can I sue Uber or Lyft directly?

It’s difficult because of the independent contractor classification and mandatory arbitration clauses. However, you can absolutely claim against their insurance policies—which is where the money actually is. In some cases involving negligent hiring, inadequate background checks, or platform design defects, direct claims against the company may be viable.

What if the Uber driver’s personal insurance denies my claim?

This happens frequently—many personal policies exclude commercial driving. When the personal policy denies, Uber/Lyft’s contingent coverage kicks in. Your attorney will navigate which policy applies and force the appropriate insurer to respond.

How much is a rideshare accident case worth?

With $1M in Phase 3 coverage available, serious rideshare accident cases can settle for $50,000–$500,000+, depending on injury severity. The coverage ceiling is rarely the limiting factor—the extent of your injuries is. Contact Conduit Law for a free case evaluation.

What if I was in an Uber Pool or shared ride?

Same coverage applies. Whether you were in a standard Uber, UberX, Uber Pool, Lyft Shared, or any other ride type—Phase 3 coverage of $1M applies to all active rides.

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Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Consult with an attorney for advice regarding your specific situation.

Rideshare insurance is designed to confuse you. Don’t play their game. Call Conduit Law—we’ll cut through the coverage maze and make sure the right insurer pays what they owe. Free consultation.