Rideshare Accidents: Who Bears Liability When Multiple Insurance Policies Overlap?
Rideshare services have changed how people get around. They're convenient, often affordable, and widely available. However, with more rideshare vehicles on the road, accidents involving these drivers are happening more frequently. When a crash occurs, questions about who’s responsible—and who’s paying—can get messy fast.
Unlike traditional car accidents, rideshare collisions often involve overlapping insurance coverage. Kyle H. Jarzmik Law in Atlanta, Georgia, can offer practical help so you can better understand your rights and what to expect after a rideshare accident.
The Phases of Rideshare Insurance
Liability in a rideshare accident often hinges on what the rideshare driver was doing at the time of the crash. Most rideshare apps divide a driver’s time into three basic periods, and different coverage applies to each one. Here are the three main insurance periods you should be aware of:
Offline or app off: When the driver isn’t logged into the rideshare app, their own personal auto insurance is the only policy that applies.
App on, waiting for a ride request: When the driver is logged in and waiting for a passenger, both their personal insurance and a limited rideshare policy may apply.
Ride accepted or passenger in the vehicle: From the moment a ride is accepted to the time the passenger exits, the rideshare company’s liability policy kicks in.
These phases determine whose insurance will be responsible and to what extent. But even within these categories, things can get more detailed depending on what the investigation reveals.
When the Driver’s Personal Insurance Applies
In some cases, a rideshare driver’s personal insurance becomes the main—or only—source of coverage. But that isn’t always straightforward, especially if the driver didn’t disclose rideshare activity to their insurer. Here are some key points you should consider about personal insurance coverage:
Offline drivers are treated like any other motorist: If the driver wasn’t logged into the app, only their personal policy comes into play.
Most personal policies exclude rideshare driving: Unless the driver bought an add-on or special coverage, their insurer may deny the claim.
Rideshare endorsement matters: Drivers with rideshare endorsements have broader coverage, but it might still fall short of the damages involved in serious crashes.
This area often leads to disputes between insurance companies over who should pay what and when.
When the Rideshare Company’s Insurance Applies
Popular rideshare apps provide liability insurance, but that coverage varies depending on the driver's activity. These policies are often much larger than personal policies, which is good news for injured parties, but not always easy to access. Here’s what’s typically included in rideshare company insurance:
Third-party liability coverage up to $1 million: This covers passengers, other drivers, pedestrians, and property damage while the driver has a passenger or is en route to pick one up.
Contingent liability coverage when waiting for a ride request: If the app is on but no ride has been accepted, Uber and Lyft offer limited coverage (typically $50,000 per person, $100,000 per accident, and $25,000 for property damage).
Uninsured/underinsured motorist coverage: This may apply if another driver causes the accident and doesn’t have enough insurance.
Accessing this coverage usually means proving that the driver was actively engaged in rideshare activity at the time of the crash, which can require detailed records and cooperation from the company.
When More Than One Policy Could Apply
Things really get complicated when multiple insurance policies seem to overlap. This can happen when both the rideshare and personal policies apply—or when another driver’s policy is involved too. Injured parties often find themselves caught in the middle while insurers point fingers. Some overlapping coverage situations can include:
Disputes over whether the driver was logged into the app: If there’s confusion about the driver’s status, it can delay or derail claims.
Multiple injured parties: When several people are hurt in the same accident, it may exhaust the policy limits and lead to fights over how payouts are distributed.
Third-party negligence: If another driver is involved, their insurer may also bear responsibility, which adds another layer to the claim.
When multiple insurers are involved, each one may argue that the others should pay first—or at all.
Sorting Out Fault and Liability in Georgia
Georgia follows a modified comparative negligence rule, which means that fault can be shared between drivers. If you're found to be 50% or more at fault, you can't recover damages. This rule affects not only how much you're eligible to receive, but also how the insurance carriers handle claims. Some factors that influence fault and payouts include:
Driver statements and police reports: These play a big role in how insurers assign fault.
Video evidence or witness accounts: Dashcams or bystanders can help establish what happened.
Traffic citations or violations: If a rideshare driver was speeding or ran a red light, it could affect both fault and coverage.
When fault is split among multiple drivers or parties, things can get especially tangled for those trying to recover damages.
What Passengers Need to Know
Passengers in a rideshare vehicle are usually in the safest position from a legal standpoint, but that doesn’t mean their claims are always easy. They may still need to deal with multiple insurers, depending on who caused the crash.
Some tips for injured rideshare passengers include:
Gather as much information as possible: Names, vehicle details, and app screenshots can help document the ride.
Seek medical attention right away: Even if injuries seem minor, having a medical record helps support your claim.
Contact an attorney early: It’s not always obvious who should be held liable, and legal help can make a big difference.
Passengers are often covered under the rideshare company’s commercial policy, but the details matter, especially if another vehicle was at fault.
What Happens If the At-Fault Driver Is Uninsured?
Rideshare companies provide uninsured/underinsured motorist (UM/UIM) coverage for both drivers and passengers. This is crucial when the at-fault party doesn’t have enough insurance, or none at all. Here’s what you should know about UM/UIM coverage:
Covers hit-and-runs and uninsured drivers: If you’re hit by someone who flees or has no coverage, the rideshare company’s UM policy might apply.
Available to rideshare drivers and passengers: Both parties may be covered, but the coverage depends on the ride phase.
Policy limits can vary by company: Not all UM/UIM policies are the same, so checking the details is important.
This type of coverage can help fill gaps when traditional claims aren’t possible.
Filing a Personal Injury Claim After a Rideshare Crash
Whether you were a passenger, another driver, or even a pedestrian, you may have grounds to file a personal injury claim. These cases follow the same general structure as other car accidents in Georgia, but may involve more moving parts due to the insurance situation. Here are some important steps you should take after a rideshare accident:
Report the crash: Call the police and file a report, even if it seems minor.
Document everything: Photos, videos, and witness names can be important later.
Get medical help: Immediate care helps both your health and your legal case.
Avoid early settlement offers: Insurers may try to pay quickly and cheaply.
Talk to a personal injury lawyer: They can help sort out liability and protect your rights.
Time limits apply for filing claims in Georgia, so acting quickly is critical. In most cases, you have two years to file a personal injury lawsuit.
Reach Out to a Rideshare Accident Attorney Today
If you’ve been hurt in a rideshare accident, don’t try to handle it alone. Legal help can give you the best shot at a desirable outcome. I serve clients in Atlanta, Georgia, and throughout the state including Fulton, Cobb, Dekalb, Gwinnett, Forsyth, Douglas, Coweta, Paulding, and Cherokee County. Contact Kyle H. Jarzmik Law today to get started with a consultation.