Uber and Lyft Liability in Multi-Vehicle Crashes

Uber and Lyft have transformed transportation across New York, offering quick, affordable, and convenient rides at the tap of a button. But as more rideshare vehicles crowd the streets, multi-vehicle crashes involving Uber or Lyft drivers are becoming more common—and legally more complicated.

Unlike traditional car accidents, rideshare accident claims involve multiple insurance policies, complex liability coverage rules, and disputes between insurance companies. Passengers, pedestrians, and even other involved drivers can struggle to determine who is financially responsible for their medical bills, property damage, and lost wages.

If you’ve been injured in a rideshare crash in New York City, understanding how Uber and Lyft liability works is essential to protecting your rights. At Hill & Moin LLP, our personal injury attorneys have extensive experience handling Uber accident cases and can help you secure fair compensation.

Call (212) 668-6000 for a free consultation today.

How Ride-Sharing Services Work — and Why It Matters for Liability

Uber and Lyft drivers operate as independent contractors, not employees. This distinction is important because it influences how liability is determined after a crash.

When a rideshare accident occurs, fault and insurance coverage depend heavily on the driver’s status at the time of the incident. There are three key stages in a rideshare trip:

1. Driver Offline (No App Active):
   The driver’s personal auto insurance applies. Neither Uber nor Lyft provides coverage at this stage.
2. App On, Waiting for a Ride Request:
   The driver is logged into the app but hasn’t yet accepted a ride. Limited liability coverage from the rideshare company’s insurance policy may apply.
3. Actively Engaged in a Ride (En Route or Transporting Passengers):
   Once a driver accepts a ride request or is transporting passengers, Uber or Lyft’s commercial insurance coverage applies. This coverage typically includes up to $1 million in liability coverage for bodily injury and property damage.

Understanding which stage the driver was in when the accident occurred is crucial for determining liability and pursuing the appropriate insurance claims.

Common Causes of Rideshare Accidents in New York

Rideshare services operate in the same high-traffic environments as taxis, buses, and delivery vehicles, making multi-vehicle collisions a frequent risk. Common causes include:

• Distracted driving due to GPS use or passenger communication
• Speeding to maximize ride volume or meet time expectations
• Driver fatigue from long shifts or back-to-back rides
• Unsafe lane changes or tailgating
• Traffic law violations at busy intersections
• Poor vehicle maintenance by rideshare drivers

• Bad weather or road hazards

These crashes often involve several vehicles, leading to multiple parties and insurance companies disputing fault.

Determining Liability in a Multi-Vehicle Rideshare Crash

In multi-vehicle rideshare accidents, determining liability is often complex. Several factors must be analyzed, including driver logs, witness statements, and police reports.

Potentially Liable Parties Include:

1. The Rideshare Driver
   If the rideshare driver’s negligence—such as distracted driving or failure to yield—caused the crash, they may be personally liable. However, their insurance coverage depends on their app status at the time of the collision.
2. Other Involved Drivers
   In accidents involving multiple vehicles, another driver may share fault for reckless driving, speeding, or tailgating. Each driver’s insurance policy may cover part of the damages.
3. The Rideshare Company
   While Uber and Lyft often claim they are not responsible for the actions of independent contractors, their insurance policies provide coverage when a driver is actively using the app. If the rideshare company’s negligence—such as hiring an unsafe driver—played a role, they may face direct liability.
4. Vehicle Manufacturers or Third Parties
   In rare cases, mechanical failures or defective parts could make a vehicle manufacturer or maintenance provider partially liable.

Because multiple parties can be involved, it’s vital to work with an experienced attorney who can reconstruct the accident scene, collect crucial evidence, and determine each party’s share of fault.

Uber and Lyft’s Insurance Coverage in New York

Both Uber and Lyft are required by New York law to provide specific insurance coverage for their drivers and passengers. The amount of coverage depends on the driver’s status.

1. App Off: Driver’s Personal Auto Insurance Applies

When the driver is not logged into the rideshare app, their personal insurance policy applies.
Uber and Lyft provide no coverage during this stage. Unfortunately, most personal auto insurance policies exclude commercial activity—meaning victims often need legal help to pursue recovery.

2. App On, Waiting for a Ride Request

Limited liability coverage applies:

• Up to $50,000 per person for bodily injury

• Up to $100,000 per accident for bodily injury

• Up to $25,000 for property damage

3. En Route or Transporting Passengers

When the driver accepts a ride request or is carrying passengers, Uber and Lyft’s insurance policies provide:

• Up to $1 million in liability coverage

• Uninsured/underinsured motorist coverage

• Coverage for medical expenses and property damage

If another driver causes the crash but lacks sufficient insurance, Uber or Lyft’s policy may step in to cover remaining costs.

What to Do After a Rideshare Accident

If you’ve been involved in an Uber or Lyft accident, taking the right steps can protect your legal rights and strengthen your personal injury claim:

1. Seek medical attention immediately, even for minor injuries.
2. Call 911 to ensure the police report documents all vehicles involved.
3. Take photos of the accident scene, vehicles, and any visible injuries.
4. Collect contact details of the rideshare driver, other drivers, and witnesses.
5. Screenshot your trip details in the Uber or Lyft app.
6. Do not speak to insurance adjusters without legal advice.
7. Contact an experienced attorney who handles rideshare accident claims.

Your lawyer can handle communications with insurance companies, gather witness statements, and determine which insurance policies apply.

Common Injuries in Rideshare Crashes

Rideshare accident victims often sustain the same types of injuries seen in other severe collisions, including:

• Broken bones and fractures
• Whiplash and soft tissue injuries
• Traumatic brain injuries
  
  
• Spinal cord injuries

• Internal bleeding

• Emotional distress

These injuries can lead to significant medical bills, lost wages, and lasting pain. Rideshare accident victims may be entitled to fair compensation for all expenses incurred, including future medical treatment and rehabilitation.

Filing Insurance Claims After a Rideshare Accident

Because multiple insurance policies may apply, the claims process is often confusing. Here’s how it typically unfolds:

1. Determine Fault:
   Your attorney gathers police reports, dashcam footage, and witness statements to identify who caused the rideshare collision.
2. Notify Insurers:
   Each insurance company involved must be notified promptly—whether it’s the rideshare company’s insurance policy or another driver’s.
3. File a Claim:
   Your lawyer will submit a personal injury claim or property damage claim to the appropriate insurer.
4. Negotiate for Settlement:
   Insurance companies often try to minimize payouts, especially when multiple parties are involved. An experienced attorney can negotiate aggressively for fair compensation.
5. Pursue a Lawsuit (If Needed):
   If a settlement can’t be reached, your attorney can file a personal injury lawsuit in New York courts.

Challenges in Rideshare Accident Claims

1. Independent Contractor Status

Because Uber and Lyft drivers are classified as independent contractors, the companies may try to avoid liability for their driver’s negligence. However, their insurance coverage requirements still protect injured passengers and others involved.

2. Multiple Insurance Companies

With several insurance companies involved—each seeking to reduce payouts—delays and disputes are common. Having an attorney coordinate communication and evidence can prevent lowball offers.

3. Determining Driver’s Status

Pinpointing whether the driver was actively engaged in a trip or just waiting for a ride request is critical. This detail directly impacts available insurance coverage.

Compensation Available for Rideshare Accident Victims

Victims injured in Uber or Lyft accidents may recover compensation for:

• Medical expenses and rehabilitation
• Lost wages and reduced earning capacity
• Property damage

• Pain and suffering

• Emotional distress

• Wrongful death (in fatal crashes)

The amount depends on the severity of injuries, insurance coverage, and strength of the evidence.

Why You Need an Experienced Rideshare Accident Attorney

Dealing with Uber and Lyft’s insurance companies without legal help can be overwhelming. These corporations have teams of lawyers trained to limit payouts.

At Hill & Moin LLP, our attorneys have extensive experience in personal injury claims involving rideshare services. We can:

• Determine which insurance policies apply
• Identify all liable parties

• Handle negotiations with insurance adjusters

• Ensure you receive fair compensation for medical bills, lost income, and pain
• File a personal injury lawsuit if necessary

We handle all cases on a contingency fee basis—you pay nothing unless we win.

Contact Hill & Moin LLP for Help With Rideshare Accident Claims

If you were injured in a rideshare crash involving Uber or Lyft, you may be entitled to significant compensation—but time limits apply. The sooner you act, the stronger your case will be.

At Hill & Moin LLP, we help rideshare accident victims throughout New York understand their legal options and hold negligent parties accountable.

Call (212) 668-6000 or contact us online for a free consultation today.
With Hill & Moin, you’ll have lawyers in the family—fighting for the justice and recovery you deserve.