If you are hurt in an Uber or Lyft accident in NYC, which insurance pays depends on one thing: what the driver’s app was doing at the moment of the crash. When a trip is in progress, New York requires rideshare companies to carry $1.25 million in liability coverage. When the app is off, only the driver’s personal policy applies.
That difference can be the difference between a fully covered claim and a fight over scraps. Here is how the three coverage periods work, and who pays when you are the passenger, the other driver, or a pedestrian.
Key Takeaways
- Rideshare coverage runs in three periods tied to the app: off, on and waiting, and trip accepted.
- During an accepted trip, New York requires $1.25 million in liability coverage.
- In New York City, Uber and Lyft vehicles are licensed and regulated by the Taxi & Limousine Commission (TLC), not as ordinary cars.
- No-fault (PIP) still pays your medical bills up to $50,000 as a passenger, regardless of fault.
- You have three years to sue under CPLR §214(5).
Why does the app status decide who pays?
Rideshare insurance is built in layers that switch on and off with the driver’s app. A driver between fares is in a different legal position than one carrying a passenger, and the coverage reflects that. Pinning down the exact app status at the time of the crash is the first thing that has to be established.
That status lives in the company’s trip data, which is why it should be requested early. Uber and Lyft keep detailed logs of when a trip was requested, accepted, and completed, and that record usually settles the coverage question.
What are the three coverage periods?
- Period 0, app off. The driver is not working. Only their personal auto insurance applies, and most personal policies exclude commercial use.
- Period 1, app on, waiting for a request. The company provides limited liability coverage, generally $75,000 for bodily injury per person, while the driver waits.
- Periods 2 and 3, request accepted and passenger aboard. The full $1.25 million liability policy applies, from the moment the driver accepts your ride through drop-off.
If you were a passenger, you were in Period 3, and the $1.25 million layer covers you. Our NYC rideshare accident lawyers confirm the period from the trip logs before any insurer can argue otherwise.
How is a NYC rideshare different from the rest of New York?
New York City runs its own system. Uber and Lyft cars here are for-hire vehicles licensed by the Taxi & Limousine Commission, with their own insurance and registration rules, separate from the statewide rideshare law that governs the rest of New York.
For an injured passenger the practical result is similar: substantial coverage is available during a trip. But the regulatory layer matters when identifying every policy in play, including the TLC-mandated coverage on the vehicle itself. It is one more reason these claims are not handled like an ordinary car accident.
Does no-fault still apply to rideshare passengers?
Yes. New York’s no-fault system covers you as a rideshare passenger. Personal Injury Protection pays your medical bills and a portion of lost wages up to $50,000, no matter who caused the crash, under Insurance Law §5103.
As with any car crash, no-fault does not pay for pain and suffering. To recover those damages you must meet the serious injury threshold in Insurance Law §5102(d), the same standard that applies to every New York motor vehicle case.
What should you do after an Uber or Lyft crash?
Screenshot your trip in the app before anything else, because that record proves the ride was active. Get the police report, the rideshare driver’s information, and the other driver’s details if a second car was involved. Report the crash through the app so the company logs it.
Then move quickly. The three-year deadline under CPLR §214(5) is generous, but trip data, dashcam footage, and witness memory are not. If you need the wider view of how injury claims work in the city, our NYC personal injury lawyers overview is a good starting point.
Hurt in an Uber or Lyft in New York?
Which policy pays comes down to proof, and that proof is in trip data that should be requested right away. The NYC rideshare accident lawyers at Keith D. Silverstein & Associates have recovered millions for injured New Yorkers. Call 212-385-1444 for a free consultation.
Keith D. Silverstein · Admitted to the New York Bar, 1987 · Read Keith’s bio
Published September 23, 2026 · Last reviewed October 2026
This article is general information about New York law, not legal advice, and does not create an attorney-client relationship. Every case is different. Attorney Advertising.
