Uber & Lyft Passenger Injury in California: Who Pays After a Crash?

You climbed into the back of an Uber or Lyft to be safe — maybe after a night out, maybe just to skip the traffic. Then another car slams into you, and suddenly you are hurt, confused, and staring at a maze of insurance policies that do not seem to be yours. If you were injured as a passenger, the single most important thing to understand about an Uber and Lyft passenger injury in California is this: the rules changed dramatically on January 1, 2026, and how much you can recover now depends heavily on who caused your crash.

This guide breaks down exactly how rideshare insurance works, what the new law (SB 371) took away, what is coming in 2027 (SB 623), and the practical steps that protect your claim. As always, every case is different and nothing here is a substitute for advice from an attorney who has reviewed your specific facts — but by the end you will understand the landscape far better than most people ever do.

The good news and the bad news for injured rideshare passengers

Here is the whole story in two sentences. Good news: if your Uber or Lyft driver caused the crash, a $1 million commercial insurance policy still protects you — that did not change. Bad news: if another driver caused the crash and that driver had little or no insurance, the protection Uber and Lyft must provide you dropped from $1 million all the way down to $60,000 as of January 1, 2026.

That distinction — your driver at fault versus someone else at fault — is now the hinge your entire case can turn on. Let’s unpack why.

How Uber and Lyft insurance actually works: the four “periods”

California does not treat rideshare insurance as one continuous policy. Under Public Utilities Code §5433, coverage rises and falls depending on what the driver’s app was doing at the exact moment of the crash. There are four stages:

• Period 0 — App off. The driver is off the clock and driving as a regular person. Only their personal auto insurance applies; Uber and Lyft owe nothing.
• Period 1 — App on, waiting for a request. The driver is logged in but has no ride yet. A limited contingent policy applies (roughly $50,000 per person / $100,000 per accident).
• Period 2 — Ride accepted, driving to pick you up. Full commercial coverage kicks in: a $1 million liability policy.
• Period 3 — You are in the car. This is where passengers live. From the second you get in until the second you get out, the highest level of protection applies.

For an injured passenger, you are almost always in Period 3 — the best-covered phase. But “best-covered” now means two very different things depending on who was at fault. Here is how the coverage breaks down after the 2026 changes:

Coverage phase	App status	If the rideshare driver is at fault	If an uninsured third party is at fault
Period 0	App off	Driver’s personal policy only	Driver’s personal policy only
Period 1	On, waiting	~$50k / $100k contingent	Very limited / often none
Period 2	En route to you	$1,000,000 liability	—
Period 3	You are the passenger	$1,000,000 liability	$60,000 / $300,000 UM/UIM (was $1M)

Who pays for your Uber or Lyft passenger injury?

As a passenger, you are virtually never at fault — you were just sitting in the back seat. That puts you in a strong position. The real question is simply which policy pays. There are two scenarios, and they lead to very different places.

Scenario A: Your rideshare driver caused the crash

If your Uber or Lyft driver ran the red light, was texting, or rear-ended the car ahead, their negligence triggers the TNC’s $1 million commercial liability policy. SB 371 did not touch this coverage. You have access to the full $1 million to cover your medical bills, lost wages, and pain and suffering. This is the best-case coverage scenario.

Scenario B: Another driver caused the crash — and had no insurance

If a different driver — a drunk driver, a hit-and-run, or someone with no coverage — caused the crash, your own rideshare driver is not legally at fault. That means you cannot tap the $1 million liability policy. Instead you fall back on Uber or Lyft’s uninsured/underinsured motorist (UM/UIM) coverage. And this is exactly the coverage that just got gutted.

What SB 371 changed about your Uber and Lyft passenger injury rights

For almost a decade, Uber and Lyft were required to carry $1 million in UM/UIM coverage to protect passengers hurt by uninsured drivers. Signed by Governor Newsom on October 3, 2025 and effective January 1, 2026, Senate Bill 371 slashed that requirement to just $60,000 per person / $300,000 per accident — roughly a 94% cut in per-person protection.

The practical impact is stark. Imagine you are riding in a Lyft, an uninsured driver runs a red light and T-bones you, and you need surgery and months of therapy totaling $400,000. Before 2026, Lyft’s UM/UIM policy could cover up to $1 million of that. As of 2026, that same policy caps out at $60,000 — potentially leaving a six-figure gap.

If that happens, your options may include:

• Your own auto insurance. If you own a car and carry your own UM/UIM coverage, you may be able to turn to that policy to help close the gap. Whether — and how much — you can “stack” your coverage on top of the rideshare policy depends on your policy’s specific language and can require a fight with your own insurer, so this is an area where legal help matters.
• Any other at-fault parties. Sometimes more than one party contributed to a crash, opening additional insurance.

The takeaway: carrying solid UM/UIM coverage on your own policy is now more valuable than ever, precisely because the rideshare safety net shrank so much.

SB 623: a second change arriving January 1, 2027

A second law, Senate Bill 623 (the “Fair Medical Billing & Rideshare Safety Act,” new Civil Code §3333.9), signed June 25, 2026, affects how much of your medical bills you can claim — but only for rideshare accidents happening on or after January 1, 2027.

Many injured people get treatment on a “medical lien” — the doctor treats you now with no money up front and gets paid later out of your settlement. Starting in 2027, for rideshare cases, SB 623 caps the past medical bills you can present to a jury at the 70th percentile of typical billed charges for that treatment in your area (using a recognized database called FAIR Health). Bills above that benchmark generally cannot be shown to a jury, which can reduce the total value of a claim.

Two things to keep in perspective: SB 623 applies only to rideshare (TNC) cases, not ordinary car accidents, and it limits only lien-based past medical damages — it does not cap your pain and suffering, lost wages, or future medical care. If your crash happened before 2027, it does not apply to you at all.

Can you sue Uber or Lyft directly?

This is one of the most common questions, and the answer has two layers.

Because of Proposition 22 — upheld by the California Supreme Court in Castellanos v. State of California (2024) 16 Cal.5th 588 — Uber and Lyft drivers are classified as independent contractors, not employees. That generally blocks the usual argument that the company is automatically responsible for its driver’s mistakes.

But here is the key point: you usually do not need to sue Uber or Lyft directly to be paid. Public Utilities Code §5433 requires them to carry that $1 million liability policy for passengers, so you claim against the insurance regardless of the employment debate. And in cases involving the company’s own misconduct — for example, negligently keeping a dangerous driver on the platform despite red flags — an injured passenger may still be able to pursue Uber or Lyft directly for negligent hiring or supervision. Whether that path exists depends entirely on the facts, which is something an attorney would investigate.

What is an Uber or Lyft passenger injury claim worth?

Be skeptical of any website promising an “average” rideshare settlement. Law firms tend to advertise their rarest, largest results, which tells you almost nothing about a typical case. The honest answer is that value depends on the severity of your injuries, your medical costs, your lost income, how your injuries affect your daily life, and — critically after 2026 — which insurance policy applies.

The illustrative bands below are rough generalizations drawn from settlement-analytics sources, offered only to set expectations. They are not a prediction, a promise, or a substitute for a real case evaluation — results are never guaranteed, and your case could fall well outside these ranges in either direction.

Injury severity	Illustrative range	Typical injury profile
Minor	$15,000 – $50,000	Soft-tissue injuries, whiplash, sprains; short-term therapy, no surgery.
Moderate	$50,000 – $250,000	Non-surgical fractures, herniated discs, mild concussion; extended rehab.
Severe / catastrophic	$250,000 – $1,000,000+	Surgical fractures, spinal cord injury, serious TBI, wrongful death.

For a deeper look at how these numbers are actually built, see our guides on how much a California car accident case is worth, how pain and suffering is calculated, and whiplash settlement value — the same principles apply to rideshare claims.

One more reality: in severe cases, the $1 million policy limit can itself become the ceiling, forcing a search for additional coverage. And in any case, expect the insurer to open with a quick lowball offer — sometimes just a few thousand dollars within days of the crash — hoping you sign a release before you know how badly you are hurt. Do not accept a quick settlement before you understand your injuries.

Deadlines you cannot afford to miss

California sets hard time limits, and missing them can permanently destroy an otherwise strong claim.

• Two years from the date of the crash to file a personal injury lawsuit (Code of Civil Procedure §335.1).
• Just six months if a government entity is involved — for instance, if your rideshare was hit by a city bus or a public utility truck (Government Code §911.2). This deadline is dangerously short, so act quickly if a public vehicle was part of your crash.

California also follows pure comparative negligence (from the case Li v. Yellow Cab Co., 1975) — but as a passenger, fault is almost never assigned to you, so you are typically positioned to recover 100% of your damages.

What to do if you’re hurt as a rideshare passenger

1. Get medical attention right away, even if you feel “okay.” Neck and back injuries and concussions often surface a day or two later, and a gap in treatment is the first thing an insurer uses against you.
2. Screenshot the ride in the app — the driver’s name, the trip details, and the date/time. This proves you were a Period 3 passenger.
3. Report the crash in the Uber or Lyft app and make sure police are called so there is an official report.
4. Photograph everything — the vehicles, the scene, your injuries — and get the other driver’s and your rideshare driver’s information.
5. Do not give a recorded statement to any insurer, and do not accept a fast settlement, before talking to a lawyer.

Frequently asked questions

Does Uber’s or Lyft’s insurance cover me as a passenger?

Yes. While you are in the vehicle (Period 3), the company must carry a $1 million liability policy that covers you if your rideshare driver is at fault. If an uninsured third party is at fault, you fall back on the UM/UIM policy — which, as of January 1, 2026, is capped at $60,000 per person.

My Uber was hit by a hit-and-run driver. Who pays?

A hit-and-run is treated as an uninsured-motorist claim. You would claim against the rideshare company’s UM/UIM coverage — but because of SB 371, that recovery is now capped at $60,000 per person. If your damages are higher, your own UM/UIM policy may help fill the gap.

Can I sue Uber or Lyft directly?

Usually you do not need to — you claim against the required insurance instead. Because of Proposition 22, you generally cannot hold the company automatically liable just for the driver’s mistake, but you may be able to sue the company directly for its own negligence, such as negligently keeping a dangerous driver on the road.

Will making a claim get my rideshare driver in trouble or raise their rates?

A passenger claim during an active ride is paid by the company’s commercial policy, not your driver’s personal insurance, so it generally does not hit the driver’s personal premiums.

Does the new SB 623 medical-billing cap affect my case?

Only if your rideshare crash happens on or after January 1, 2027, and only for lien-based past medical bills. It does not touch pain and suffering, lost wages, or future care — and it does not apply to ordinary (non-rideshare) car accidents.

How long do I have to file a claim?

Generally two years from the crash, but as little as six months if a government entity is involved. Because evidence like app records and vehicle data can disappear, it is smart to act well before the deadline.

Injured in an Uber or Lyft? Let’s talk.

Rideshare claims have always been more complicated than ordinary car accidents, and the 2026 and 2027 law changes made them more complicated still. The insurance companies understand these rules cold — you deserve someone in your corner who does too. At Power Legal Group, we help injured California rideshare passengers sort out which policies apply and pursue the full recovery available to them. Every case is different and results are never guaranteed, but a free consultation will give you a clear picture of your rights. Contact us today to discuss your Uber or Lyft passenger injury.