Rideshare services like Uber and Lyft have become an integral part of transportation in Las Vegas, for both tourists and residents. While convenient, they also introduce complex legal and insurance questions when an accident occurs. Whether you were a passenger in an Uber, a pedestrian hit by a Lyft driver, or another driver involved in a crash, knowing which insurance policy applies is key to your recovery.
The Three-Tier Insurance System
The insurance coverage for a rideshare accident depends entirely on the driver's status within the app at the moment of the crash. Nevada law and the companies' policies create a three-tiered system:
- The Driver is Offline: If the rideshare driver is not logged into the app, they are considered a private citizen. In this case, only their personal auto insurance policy would apply to any accident they cause. This can be problematic if they only carry Nevada's minimum liability coverage.
- The Driver is Online and Waiting for a Request: This is "Period 1." The driver is logged in and available but has not yet accepted a ride. During this phase, their personal insurance is still primary. However, if their policy denies the claim or is insufficient, Uber and Lyft provide contingent liability coverage. This typically includes at least $50,000 per person for bodily injury, $100,000 per accident, and $25,000 for property damage.
- The Driver Has Accepted a Ride or is Transporting a Passenger: This is "Period 2 and 3." From the moment the driver accepts a ride request until the passenger exits the vehicle, Uber and Lyft's full commercial insurance policy is in effect. This is a high-limit policy that includes at least $1 million in third-party liability coverage, as well as uninsured/underinsured motorist (UM/UIM) coverage. This policy is designed to protect passengers and other victims in the event of a serious accident.
Steps to Take After a Rideshare Accident
If you are involved in an accident with an Uber or Lyft, treat it like any other crash: call 911, seek medical attention, and document the scene. However, there are extra steps to take:
- Take a Screenshot: If you are a passenger, take a screenshot of your ride in progress within the app. This is crucial proof that you were covered under the $1 million policy.
- Identify the Driver's Status: If you are another driver or pedestrian, try to ask the rideshare driver if they were on a trip. Note their name and license plate.
- Do Not Speak to Insurance Adjusters: You will likely be contacted by multiple insurance companies—the driver's personal insurer and the rideshare company's insurer. Do not give a recorded statement or accept any settlement offers before speaking with an attorney. They can determine which policies apply and handle all communications to protect your rights.