Signing up to drive for Uber or Lyft is simple. Open the app, start accepting rides, and start earning.
But when an accident happens, everything changes.
Now, you’re dealing with insurance claims, coverage rules, and confusing company policies.
What happens if you get in an accident while driving for Uber? Will their insurance cover the damage? Some drivers assume they’re covered, only to find out later that Uber questions their claim, refuses to cover repairs fully, or restricts their account without warning.
This isn’t about who caused the accident—it’s about ensuring you don’t get stuck with expenses you shouldn’t have to pay. Uber and Lyft structure their policies to protect their bottom line first. That’s why it’s critical to understand how their coverage works and what you can do if they aren’t following through.
Who Pays for the Damage? Uber, Lyft, or You?
Uber and Lyft promote their $1 million insurance policy, but coverage depends on your driver status when the crash happened. The following rules apply:
- Not logged into the app. There is no coverage, and your personal auto insurance applies.
- Logged in with no passenger. Limited coverage applies for $50,000 per person for injuries, $100,000 per accident, and $25,000 for property damage.
- Traveling to pick up a passenger or driving a passenger. The $1 million liability policy applies, including third-party injuries and uninsured driver coverage.
Getting a payout isn’t automatic. Even when coverage applies, Uber and Lyft’s insurance companies seek ways to pay less. They may blame another driver, dispute your injuries, or say repairs don’t meet their policy limits.
While Uber and Lyft have legal teams protecting them, who’s making sure you aren’t left paying out of pocket? Peerali Law holds them accountable.
Does Uber Compensate for Accidents?
Many drivers wonder, Does Uber compensate for accidents? Not directly. Uber and Lyft do not pay drivers out of pocket after a crash. Their insurance has limits on certain damages, such as:
- Missed rides and lost earnings. Uber and Lyft won’t reimburse you if you can’t drive after an accident.
- Vehicle repairs. Coverage, deductibles, and policy limits depend on whether Uber or Lyft’s policy applies.
- Medical expenses. Their insurance may cover injuries, but only under specific conditions.
If another driver is at fault, their insurance should cover damages, but claims often face delays, low offers, or denials.
Will Uber Fire Me for Getting in a Car Accident?
Getting fired for a car accident usually depends on the details of the crash, any passenger complaints, and whether Uber or Lyft considers you a risk. Uber and Lyft can deactivate drivers after an accident, but there’s no consistent policy. Some drivers continue working, while others get locked out of their accounts without warning. Factors that may lead to firing include:
- Uber or Lyft believes you were at fault. A serious accident, especially one involving injuries or significant damage, may lead to permanent deactivation.
- A passenger reports the accident. Riders who feel unsafe might file a complaint, even if the crash wasn’t your fault. Enough complaints can lead to account restrictions.
- Your driving history raises concerns. Multiple incidents, even minor ones, can make Uber or Lyft decide you’re no longer a good fit for the platform.
Uber and Lyft allow drivers to appeal deactivations, but reinstatement is not guaranteed. The review process can be slow, and many drivers never receive a clear answer.
Drivers rely on these apps for income; getting cut off without warning can be a major setback. Peerali Law helps drivers push back when Uber or Lyft wrongfully deactivate them after an accident.
What to Do After an Uber or Lyft Accident in California
An accident while driving for Uber or Lyft can leave you with medical bills, vehicle repairs, and missed income—but the rideshare company’s response isn’t always straightforward. Some drivers assume Uber or Lyft will step in to cover everything, only to find out their insurance has strict conditions.
Taking these steps after a crash can protect your ability to recover compensation:
- Get medical attention. Some injuries take time to show symptoms. A doctor’s visit not only protects your health but also creates medical records that can support your claim.
- Report the accident to Uber or Lyft. Use the in-app reporting tool to document the crash. If it’s not on record, their insurance provider may deny coverage.
- File a police report and report to the DMV. California law requires you to report an accident to the DMV within 10 days if it caused injuries or more than $1,000 in damage. A police report helps establish what happened and can be helpful when filing a claim.
- Take photos and gather witness information. Document vehicle damage, road conditions, and any visible injuries. Witnesses can provide statements that support your version of events.
- Be cautious when speaking with insurance companies. Uber and Lyft’s insurers may try to reduce how much they pay. California follows a comparative fault rule, meaning your compensation can be reduced if they argue you were partially responsible.
Rideshare companies follow their policies, not what benefits drivers the most. Peerali Law ensures that Uber, Lyft, and their insurers take responsibility when coverage applies.
Got in an Accident While Driving for Uber or Lyft? Talk to Peerali Law Today
What happens if you get in an accident while driving for Uber? The answer to this question can be complicated.
Rideshare companies and insurance providers are looking out for their bottom line. Before accepting an offer or assuming there’s nothing more you can do, talk to Peerali Law.
We can confirm whether Uber or Lyft’s insurance should cover all your damages, if any settlement offer is fair, and whether you can challenge a deactivation.
You’ve logged the miles—don’t let the company decide what your accident is worth.
Call Peerali Law at 818-938-2983 or fill out our online form today for a free consultation.
Kristopher earned his J.D. at the University of Southern California Gould School of Law where he was a member of the Review of Law and Social Justice honors law journal and was awarded several scholastic honors.
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