Standing on the side of a busy Los Angeles freeway after a collision is terrifying enough without the added confusion of corporate apps and contractor disputes. Resolving a claim against Uber or Lyft requires cutting through a tangled web of corporate liability, independent contractor law, and overlapping insurance policies. California rideshare accident laws are what actually govern which policy pays, and knowing them is the first step to a fair recovery.
How TNC Crashes Differ from Standard Collisions
Ridesharing companies are officially Transportation Network Companies, or TNCs, under California law. The most recognized examples in Los Angeles are Uber and Lyft. TNCs rely on an independent contractor model: the drivers do not own the corporate platforms, and the platforms do not own the vehicles. That separation of ownership is exactly what complicates recovery when a crash happens, because the available insurance depends entirely on the driver’s digital status at the moment of impact.
California’s Three-Period Insurance Framework
Under California Public Utilities Code section 5433, TNC insurance requirements shift across three distinct periods of driver activity.[1]
- Period 1, app open, no ride accepted: the TNC must provide primary liability coverage of at least $50,000 per person, $100,000 per accident for injury, and $30,000 for property damage.
- Period 2, ride accepted, en route to pickup: coverage expands to a $1 million primary commercial liability policy.
- Period 3, passenger in the vehicle: the same $1 million policy remains in effect until the passenger exits.
If the driver’s app is off completely, they are legally a private citizen, and only their personal auto insurance applies.
Determining Liability
Every driver in California owes a duty of ordinary care to others on the road.[2] Establishing liability means proving the driver breached that duty. Suing the rideshare company directly is difficult, since Proposition 22 (2020) keeps most drivers classified as independent contractors rather than employees for most purposes, which shields the platform from standard vicarious-liability claims. There are narrower exceptions, most notably claims that the company itself was negligent, such as an inadequate background check on the driver it put on the road. Those claims target the company directly rather than relying on the driver’s employment status.
What TNCs Are Actually Required to Screen and Inspect
The “negligent background check” theory is not just a phrase; it is backed by specific California requirements a TNC must meet. State law requires TNCs to conduct a local and national criminal background check on every driver before allowing them on the platform.[5] TNCs are also required to have each vehicle pass a 19-point safety inspection, covering brakes, tires, lights, steering, and seatbelts, before it goes into service and again periodically afterward.
When a company puts a driver on the road who should have failed a background check, or lets a vehicle operate that never passed its required inspection, that failure can become the basis of a direct negligence claim against the company itself, separate from any claim against the driver.
Uninsured and Underinsured Motorist Coverage Was Significantly Cut in 2026
This is a different coverage than the $1 million primary liability policy described above, and the distinction matters. Primary liability applies when your own TNC driver caused the crash; that stays at $1 million and SB 371 did not touch it. Uninsured and underinsured motorist coverage, or UM/UIM, applies instead when a different, at-fault driver, someone other than your TNC driver, caused the crash and does not have enough insurance of their own to cover your injuries.
Effective January 1, 2026, Senate Bill 371 cut the UM/UIM coverage TNCs must carry during Periods 2 and 3 from $1 million per person to just $60,000 per person and $300,000 per accident, roughly a 94 percent reduction.[4] If an uninsured driver hits the rideshare vehicle you are riding in, the TNC’s own policy may now cover only a fraction of what it did before January 2026. Serious injuries routinely exceed $60,000 in medical costs alone, which means the gap between what you are owed and what the TNC’s policy actually pays can be substantial. Your own personal auto UM/UIM coverage, if you carry it, may be able to fill part of that gap, and we investigate every available source of recovery rather than assuming the reduced TNC policy is the only option.
Leading Causes and Common Injuries
- Distracted driving while interacting with the app interface
- Sudden stops in active traffic lanes to drop off passengers
- Illegal U-turns to reach a pickup faster
- Driver fatigue from long shifts
Common injuries include traumatic brain injuries, spinal cord damage, compound fractures, and severe whiplash.
Immediate Steps If a TNC Vehicle Hits You
- Call 911 so police document the scene
- Screenshot your app if you were a passenger, or the driver’s profile and trip details if you were the other motorist
- Photograph the vehicles, license plate, intersection, and your injuries
- Get contact details for any bystanders who witnessed the crash
- Seek medical evaluation the same day
Legal Deadlines
Under California Code of Civil Procedure section 335.1, you generally have two years from the date of the accident to file a personal injury lawsuit.[3] Missing this window almost always results in permanent dismissal.
How Haffner Law Builds Your Rideshare Accident Case
The single most contested question in a TNC crash is what the driver’s app was doing at the moment of impact, and that data lives inside the company’s own servers, not on the street. We subpoena trip logs, GPS records, and driver-status history to pin down exactly which coverage period applied, rather than accepting the company’s own account of it.
When the company’s own conduct, not just the driver’s, is part of the problem, we investigate its background-check and vehicle-inspection records to determine whether it met its own legal obligations before putting that driver and that vehicle on the road. Between the driver’s insurer, the company’s commercial policy, and any third-party coverage, we identify every source of recovery rather than settling for the first policy that gets offered.
California Rideshare Accident Law FAQs
How long do I have to file a rideshare lawsuit in California?
Two years from the date of the collision to file a personal injury lawsuit against the responsible parties.
What if both drivers are at fault?
Under California vehicle accident laws, liability can be split between multiple drivers. If an Uber driver and another motorist both contributed to your injury, you can pursue compensation from both insurers based on their percentage of fault.
Should I give a recorded statement to the corporate insurance adjuster?
No. Never provide a recorded statement to the opposing insurer without consulting your attorney first. Adjusters use recordings to lock you into statements that can be twisted later to minimize your compensation.
What if the other driver, not my Uber or Lyft driver, caused the crash and had no insurance?
Your TNC’s own uninsured/underinsured motorist coverage may apply if you were a passenger during Period 2 or 3, though as of January 1, 2026 that coverage was cut from $1 million to just $60,000 per person and $300,000 per accident.[4] We identify every available source of recovery, including your own personal UM/UIM policy if you carry one, rather than assuming the reduced TNC policy is your only option.
Can I sue Uber or Lyft directly instead of just the driver?
Usually not for the driver’s negligence alone, since Proposition 22 keeps most drivers classified as independent contractors. Direct claims against the company itself are narrower, typically involving the company’s own negligence, such as inadequate driver screening.
Speak With a California Rideshare Accident Lawyer
Insurance adjusters working for billion-dollar tech companies are highly trained negotiators. Haffner Law knows how to subpoena a TNC’s digital logs and prove exactly when the app was active, and knows the difference between a hard-nosed adjuster and one who has crossed into insurance bad faith. Our attorneys handle the aggressive adjusters and complex evidence gathering so you can focus on healing.
We serve injured people from our California locations, with our principal office on Ventura Boulevard in Sherman Oaks.
Call (213) 514-5681 for a free case evaluation. We will pull the trip data and identify every policy that was active when you were hit.
