Ride-sharing services like Uber and Lyft have reshaped everyday travel throughout New York and New Jersey, giving people fast and convenient ways to get around. However, when an accident happens, issues surrounding fault and insurance coverage can become confusing very quickly.
Because each state has its own rules for insurance and liability, these situations are often more complicated than typical car accidents. Keep reading to learn how coverage applies and who is responsible for paying injury-related costs.
What Makes Uber and Lyft Accidents Different From Regular Car Crashes
Rideshare accidents differ from regular car crashes because they combine personal driving with commercial work. Drivers use their own vehicles to transport passengers through the Uber or Lyft app. Since both companies regard drivers as contractors, figuring out who is responsible becomes more complicated.
In a normal car accident, the at-fault driver’s personal insurance covers the damages. Rideshare crashes work differently. Most personal insurance policies exclude coverage when a vehicle is used for paid rides. This creates confusion about which insurer must pay after a crash.
Uber and Lyft provide insurance coverage that changes based on the driver’s app status. Whether the driver was waiting for a ride, on the way to a pickup, or carrying a passenger determines which policy applies. Each stage has different limits, which determine which insurer pays and how much compensation is available.
How Rideshare Insurance Works (App Off vs. App On vs. Passenger in Vehicle)
Rideshare insurance operates in three phases. When the app is off, the driver’s personal insurance applies. Uber and Lyft provide no coverage because the driver is not working.
When the app is on and the driver is waiting for a ride request, limited coverage applies. Both companies provide $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $25,000 for property damage. This protects others if the driver causes a crash while available but without a passenger.
Once the driver accepts a ride or has a passenger in the vehicle, the coverage expands. Uber and Lyft each provide up to $1 million in liability coverage. They also include $1 million in uninsured and underinsured motorist protection.
This higher coverage tier helps pay for medical costs, lost income, and vehicle damage if another driver causes the accident and lacks sufficient insurance. The difference between these stages is critical if you have to file a claim after an Uber or Lyft accident.
Who Can Be Liable in a NY or NJ Rideshare Accident
Several parties can share responsibility after a rideshare crash. The driver, another motorist, or the rideshare company’s insurer may be liable depending on the situation.
If the driver’s app was off, their personal policy pays. Once the app is active, Uber or Lyft’s coverage takes effect. While the companies rarely admit direct fault, their insurance applies if the crash happened during a logged-in period.
In some cases, other factors come into play. A third driver may have caused the collision, or a vehicle defect could be to blame. Poorly maintained roads might also contribute. Police reports, app data, and witness statements help establish who was at fault and which insurer should cover the damages.
Key Differences Between New York and New Jersey Rideshare Claims
New York and New Jersey both follow no-fault systems, but their rules differ. In New York, Personal Injury Protection (PIP) covers up to $50,000 for medical bills and lost wages. Victims can sue only if their injuries meet the “serious injury” standard.
New Jersey’s system gives drivers two coverage choices. The “limitation on lawsuit” policy restricts lawsuits for non-economic damages unless the injuries are severe or permanent. The “no limitation on lawsuit” option allows more freedom to sue but costs more in premiums.
These rules change how claims are handled. A New York Uber accident may go through PIP first before a lawsuit becomes possible. In New Jersey, the driver’s chosen policy determines whether a victim can claim pain and suffering damages.
A Lyft accident attorney in New Jersey evaluates how a driver’s insurance choice affects your ability to recover damages. An Uber accident lawyer in New York reviews whether your injuries meet the state’s legal threshold for a lawsuit. These differences can greatly influence the compensation you receive.
What to Do If You’re Injured in an Uber or Lyft Accident
If your rideshare is involved in a crash, your main priority should be to protect your health. Call 911 and request medical help. Police reports help establish fault and confirm whether the driver was using the app.
Exchange contact and insurance details with all drivers involved. Take photos of the vehicles, location, and injuries. Save screenshots of your ride details in the app.
Get medical care right away, even if symptoms appear minor. Some injuries worsen over time. Keep copies of all medical records, bills, and receipts. Report the crash through Uber or Lyft’s in-app or online system so their insurer can review the case.
Avoid quick settlements before speaking with a lawyer. Once you accept payment, you may lose the right to pursue further claims. Legal guidance ensures that all potential coverage options, including PIP, liability, and uninsured motorist benefits, are explored fully.
When to Contact a New York or New Jersey Rideshare Accident Lawyer
Rideshare insurance laws are complex and differ between states. A lawyer can identify which policies apply, determine fault, and handle communication with multiple insurers.
An Uber accident lawyer in New York helps evaluate whether injuries qualify as serious under state law. In New Jersey, a Lyft accident attorney reviews your policy type to confirm if you can pursue compensation for pain and suffering.
Both states impose strict filing deadlines. New York gives victims three years to file a claim, while New Jersey allows two years. Acting quickly helps preserve evidence and strengthens your case.
Rideshare accident liability in New York and New Jersey depends on many factors, including app status and local law. A rideshare accident attorney can protect your rights and gather the evidence needed to build a strong case. An attorney can also pursue compensation for your treatment costs, income losses, and other related damages.
Contact Metro Law Today
If you were hurt in an Uber or Lyft accident, or other vehicle accident in New York or New Jersey, do not wait to seek help. At Metro Law, we handle complex personal injury and rideshare claims across both states. Our legal team knows how to take on insurance companies and fight for medical bills, lost wages, pain and suffering, and more on behalf of crash victims.
We are ready to review your case. Call Metro Law at 800-469-6476 today to schedule a free consultation with our New York and New Jersey car accident lawyer.
