California Uber and Lyft Accident Lawyer | TNC Insurance Periods Explained

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Last updated: April 2026 — Reflects Public Utilities Code § 5430 et seq., the Transportation Network Company insurance framework under PUC General Order 157, SB 371 and AB 1340 (effective October 1, 2025), and controlling case law on TNC period allocation in effect as of January 1, 2026

Rideshare crashes produce the most complicated insurance analysis in California motor vehicle law.

A single collision involving an Uber or Lyft driver can involve one, two, or three different insurance policies, depending on what the driver was doing at the exact moment of the crash, and the wrong period allocation can be the difference between a $15,000 recovery and a $1,000,000 recovery.

The framework is statutory — codified at Public Utilities Code § 5430 et seq. — but the practical application turns on timestamps from app data, driver testimony, and sometimes a contested fact question about whether the TNC driver was logged in, en route, or carrying a passenger when the crash occurred.

Transportation Network Companies — the statutory term for Uber, Lyft, and similar services — are regulated by the California Public Utilities Commission.

The CPUC's General Order 157 and the Public Utilities Code sections that govern TNC operations impose minimum insurance requirements that vary by "period" of the driver's app engagement.

Understanding which period applies, how the coverage layers work, and what evidence proves period status is essential to any serious rideshare injury claim. For the broader motor vehicle framework — SB 1107 minimums, uninsured motorist coverage, comparative fault — see California Motor Vehicle Accident Lawyer Referrals.

The Three TNC Periods Under California Law

California defines three distinct periods of TNC driver engagement, each with its own insurance coverage requirements. The period framework is codified at Public Utilities Code § 5433 and expanded in CPUC General Order 157.

TNC Insurance Periods and Coverage Requirements

Period	Driver Status	Primary Coverage	Contingent Coverage
Period 0 (Off-duty)	App is off; driver is using vehicle for personal purposes	Driver's personal auto policy only	None — TNC coverage does not apply
Period 1 (App on, no match)	App is on; driver is logged in and available but has not accepted a trip request	Driver's personal auto policy (if it covers TNC activity)	TNC contingent liability: minimum $50,000 per person / $100,000 per accident / $30,000 property damage
Period 2 (En route to pickup)	Driver has accepted a trip request and is en route to pick up the passenger	TNC primary commercial liability: $1,000,000	Driver's personal policy is secondary or excluded
Period 3 (Passenger in vehicle)	Passenger is in the vehicle; trip is active	TNC primary commercial liability: $1,000,000, plus TNC-provided UM/UIM (see SB 371/AB 1340 changes below)	Driver's personal policy is secondary or excluded

The practical consequence is substantial. A driver who is merely logged in (Period 1) carries relatively modest coverage, while a driver with an accepted trip (Periods 2 and 3) triggers the $1 million TNC liability policy.

A dispute over whether the driver had accepted a ride or was still waiting can shift the case valuation by an order of magnitude.

Period Allocation Is a Fact Question

TNC period status is not self-proving. The injured person cannot determine from the scene whether the driver was in Period 1 or Period 2.

The proof comes from the TNC app data — timestamps showing when the driver went online, when a trip was accepted, when the pickup was made, and when the drop-off was completed.

Uber and Lyft both maintain these records and are required to produce them in litigation, but they do not volunteer them to third parties.

Early preservation demand is essential.

A letter to Uber or Lyft within days of the incident demanding preservation of the driver's app activity records, trip history, GPS data, and internal communications protects against data loss or retention-policy destruction. Third-party subpoenas during litigation then produce the records in admissible form.

The controlling authority for the TNC period allocation is still being developed.

California courts have generally accepted the statutory three-period framework and enforced coverage allocation accordingly, but fact disputes — a driver who claims to have gone online seconds before the crash, or a passenger who claims the trip had been accepted despite no record of pickup confirmation — remain contested and frequently require expert testimony on app data interpretation.

The SB 371 and AB 1340 Changes to TNC UM/UIM Coverage

For years, the TNC framework required $1,000,000 in uninsured and underinsured motorist coverage during Periods 2 and 3. Injured passengers and third parties struck by uninsured drivers could recover up to $1 million from the TNC's UM/UIM policy when the at-fault driver was uninsured or underinsured. That framework changed significantly on October 1, 2025.

Senate Bill 371 and Assembly Bill 1340 reduced the TNC-provided UM/UIM coverage requirement to $60,000 per person, $120,000 per accident, and $30,000 property damage — a substantial decrease from the prior $1 million floor. The change took effect October 1, 2025, and applies to TNC policies issued or renewed on or after that date. Primary third-party liability remains at $1 million for Periods 2 and 3.

The practical consequence for injured rideshare passengers is that when the driver who caused the crash is uninsured or underinsured, the recovery ceiling from TNC-provided UM/UIM coverage drops dramatically.

Passengers should ensure their personal auto policies include meaningful UM/UIM coverage that can stack with TNC coverage in appropriate circumstances. For the broader UM/UIM framework, see the Uninsured and Underinsured Motorist section of the motor vehicle pillar.

Who Can Be Sued After a Rideshare Crash

Rideshare crashes frequently involve multiple potentially responsible parties. Identifying every defendant within the two-year statute of limitations is central to preserving recovery.

The TNC driver is the primary defendant in most cases. Liability follows standard California negligence principles — duty, breach, causation, damages — subject to the period-based insurance framework.

The TNC itself (Uber Technologies Inc., Lyft Inc., or the applicable entity) faces primary liability for its commercial policy obligations and, in limited circumstances, for direct negligence claims arising from negligent hiring, negligent retention, and failure to maintain adequate safety practices.

Direct negligence claims against TNCs face significant legal obstacles because TNC drivers are classified as independent contractors under Proposition 22 rather than as employees, thereby limiting traditional respondeat superior arguments.

A third-party at-fault driver — someone other than the TNC driver — is liable under standard motor vehicle negligence principles. When a third party causes the crash that injures a TNC passenger, the TNC's UM/UIM coverage (reduced to $60,000 per SB 371/AB 1340) applies to supplement recovery from the at-fault driver's inadequate policy.

Other TNC passengers, owners of other vehicles, and governmental entities may be liable in specific circumstances — for roadway defects, multi-vehicle crashes, and negligent maintenance of third-party vehicles.

What to Do After a California Rideshare Crash

The evidence preservation steps after a rideshare crash differ meaningfully from a standard car accident because app data is the central liability evidence.

Screenshot the ride in progress.

Before the app data disappears, capture the passenger's view of the active ride — trip ID, driver name, vehicle details, pickup and dropoff locations, and trip timestamps. This is the single most important piece of evidence for proving period status.

Photograph the scene and vehicles. Capture vehicle positions, damage, intersection signage, lighting conditions, and weather as soon as safely possible.

Obtain driver and vehicle information.

TNC drivers are required to display TNC trade dress (Uber or Lyft decals) while engaged on the platform, but drivers sometimes remove these. Note the driver's name, vehicle plate, and physical description.

Get a medical evaluation promptly. Rideshare passengers frequently decline ambulance transport after low-speed crashes, only to develop significant symptoms over the following hours and days. Prompt evaluation establishes the injury-crash connection and starts the treatment record that the evidence requires.

Serve a preservation letter on the TNC within days of the incident. The letter should demand retention of: all app activity for the driver on the incident date, GPS tracking data, trip acceptance records, driver on-duty status records, internal TNC safety reports related to the driver, and any prior incident records involving the same driver.

Do not give recorded statements to the TNC's insurance representatives without counsel. TNC liability insurers maintain aggressive claims programs and routinely seek early recorded statements to develop comparative fault, period allocation, and causation arguments.

Identify every potentially responsible party. In multi-vehicle rideshare crashes, liability often falls to the TNC driver, a third-party at-fault driver, and, sometimes, a government entity for roadway defects. Early counsel retention prevents statute-of-limitations problems.

Damages and Comparative Fault

Rideshare cases recover the standard California personal injury damages — economic, non-economic, and, where applicable, punitive. California imposes no cap on economic or non-economic damages in ordinary rideshare cases.

Punitive damages under Civil Code § 3294 are available in DUI and willful-conduct rideshare cases, though the TNC's commercial policy typically excludes punitive coverage for the driver personally.

California's pure comparative fault rule applies. Fault allocation among the TNC driver, third-party drivers, and any institutional defendants follows standard California principles.

For serious injuries — traumatic brain injury, spinal cord damage, severe orthopedic injuries — rideshare case valuation frequently requires the life care plan and vocational expert framework used in catastrophic injury cases.

Statute of Limitations

Two years from the date of injury under Code of Civil Procedure § 335.1. Claims against public entity vehicles involved in a rideshare crash — municipal buses, city vehicles, or government fleets — require a six-month administrative notice under the Government Claims Act.

Frequently Asked Questions

Who pays if I'm injured as an Uber or Lyft passenger? The TNC's $1,000,000 commercial liability policy applies in Period 2 (en route to pickup) and Period 3 (passenger in vehicle). If a third-party driver caused the crash and was uninsured or underinsured, the TNC's UM/UIM coverage — now $60,000 per person as of October 1, 2025 under SB 371/AB 1340 — supplements the recovery.

How are the TNC insurance periods defined? Period 0: app off, personal policy only. Period 1: app on, no trip accepted — minimum $50K/$100K/$30K TNC contingent coverage. Period 2: trip accepted, driver en route — $1M TNC primary liability. Period 3: passenger in vehicle — $1M TNC primary liability plus TNC UM/UIM.

What evidence proves which TNC period applied? App timestamps, GPS tracking data, trip acceptance records, and internal TNC communications. This data must be preserved by a written preservation letter served on the TNC within days of the incident, as retention policies may delete it.

Did the TNC UM/UIM coverage really drop to $60,000? Yes, for policies issued or renewed on or after October 1, 2025, under SB 371 and AB 1340. Before that date, the TNC UM/UIM requirement was $1 million. Passengers should maintain meaningful UM/UIM coverage on their personal policies to supplement TNC-provided limits.

Can I sue Uber or Lyft directly? The TNC is responsible for its commercial policy obligations and, in limited circumstances, direct negligence claims for negligent hiring, retention, or safety failures. Proposition 22's independent contractor classification limits traditional respondeat superior arguments but does not eliminate direct TNC liability in appropriate fact patterns.

How long do I have to file a California rideshare accident claim? Two years from the date of injury under CCP § 335.1. Claims involving public entity vehicles require a six-month administrative notice under the Government Claims Act.

DISCLOSURE 

This page is published and maintained by 1000Attorneys.com, a California State Bar Certified Lawyer Referral and Information Service, LRIS Certificate No. 0128, accredited by the American Bar Association and established in 2005. The information on this page is for general educational purposes only and is not legal advice. 1000Attorneys.com is not a law firm and does not provide legal representation. For legal advice about your specific situation, consult a qualified California attorney licensed to practice in the jurisdiction where your claim arises.