The $1M Uber & Lyft Insurance Policy: What NYC Accident Victims Need to Know

You were in an Uber or Lyft when the driver ran a red light, made an illegal turn, or caused a crash. Or you were a pedestrian struck by a rideshare vehicle in a crosswalk. Or another Uber driver hit your car on the BQE. In all of these scenarios, the same critical fact applies: when the Uber or Lyft driver had an active trip, a $1,000,000 commercial liability policy is available to cover your damages.

Most people have no idea this policy exists until they call a lawyer. Here is everything you need to know.

The Three Periods of Rideshare Insurance Coverage

Uber and Lyft divide their drivers' time into three coverage periods based on the driver's app status. Understanding which period applies to your accident is the single most important fact in your case.

Period 0 — App Off

The driver is using the vehicle for personal purposes with the app turned off. Only the driver's personal auto insurance applies. Uber and Lyft have no involvement and provide no coverage. If you are hurt by a driver in Period 0, your claim is purely against the driver's personal policy.

Period 1 — App On, No Ride Accepted

The driver has the app turned on and is available for rides, but has not yet accepted a specific trip. Uber and Lyft provide contingent coverage of:

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

This coverage only applies if the driver's personal insurance denies the claim or is insufficient. It is significantly less than the Period 2/3 coverage but still meaningful supplemental protection.

Periods 2 & 3 — Active Trip: $1 Million

The moment a driver accepts a ride request (Period 2) or has a passenger in the vehicle (Period 3), Uber and Lyft are required by New York law to carry at least $1,000,000 in commercial liability coverage. This is the policy that changes everything about rideshare accident cases.

How Is the Coverage Period Determined?

The applicable coverage period is established by the Uber or Lyft app records — GPS logs, timestamps, acceptance status, and speed data recorded at the moment of the accident. We subpoena these records in every rideshare case.

Drivers sometimes claim to have been off-duty or between rides when they were actually in Period 1 or 2. The app records tell the real story. Uber and Lyft maintain detailed logs of every driver session, and courts have consistently ordered production of this data in discovery.

New York's Black Car Fund and TLC Coverage

New York City adds an additional layer of complexity not present in other states. Rideshare drivers operating in NYC must be licensed through the Taxi and Limousine Commission (TLC). TLC licensees are also required to contribute to the Black Car Fund, which provides a separate source of workers' compensation-type benefits for drivers themselves. For accident victims, the primary focus remains the commercial liability policy — but understanding the TLC framework matters for certain complex multi-party cases.

Common Scenarios and How They Play Out

You Were a Passenger

You were in an Uber when the driver rear-ended another vehicle. You suffered a herniated disc. You were in Period 3 — the $1M policy is your primary source of recovery. You file a claim against Uber's commercial insurer for your medical bills, lost wages, and pain and suffering. No-fault PIP from the vehicle's insurance covers your initial medical expenses while the liability claim develops.

You Were a Pedestrian

A Lyft driver making a pickup ran a red light and struck you in a crosswalk in Midtown. The driver was in Period 2 — actively en route to pick up a passenger. The $1M Lyft commercial policy covers your claim as a pedestrian. You were not in the vehicle and your own auto insurance is irrelevant.

Another Driver Hit You

An Uber driver drifted into your lane on the FDR and sideswiped your car. The Uber driver had a passenger — Period 3. The $1M Uber policy covers your property damage and personal injury claim. Your no-fault coverage handles initial medical bills.

The Driver Claims to Have Been Off-Duty

The driver insists the app was off. The police report is ambiguous. We subpoena Uber's records. The records show the driver was in Period 1 — app on, no ride accepted — at the time of the accident. The $50K/$100K contingent coverage applies in addition to the driver's personal policy.

Do Not Accept the First Settlement Offer

Uber and Lyft insurance adjusters are experienced and aggressive. They often contact accident victims within days with low initial settlement offers designed to close claims before the victim understands the full extent of their injuries. These early offers are almost never adequate for serious injuries.

Once you sign a release, you cannot ask for more money — even if your injuries turn out to be far more serious than they initially appeared. Call a lawyer before signing anything. The consultation is free. It costs you nothing to get an expert opinion on what your claim is actually worth before you close it forever.