If an uninsured driver hits your rideshare vehicle, your injuries and damages should be covered by the rideshare company's Uninsured Motorist (UM) policy. Companies like Uber and Lyft are required by law in most states, including Illinois, to carry at least $1 million in UM coverage for passengers.
Speaking with an experienced Lyft and Uber Accident Attorney can help you understand how this coverage applies to your situation and ensure every possible source of recovery is explored.
You will be dealing with the rideshare company’s commercial insurance carrier, a business that must balance paying out claims with its own financial interests. The claims process involves detailed paperwork and strict deadlines, and proving the full extent of your damages requires specific evidence.
If you have a question about an injury you sustained as a passenger in a rideshare accident, call us at (312) 767-7950.
Who Is Responsible for My Medical Bills and Lost Wages?
The Rideshare Company’s Uninsured Motorist (UM) Coverage
This is your main safety net. Uninsured Motorist (UM) coverage is a part of the rideshare company’s insurance policy designed to pay for your injuries and losses if the at-fault driver has no insurance. This policy steps into the shoes of the uninsured driver. It covers your medical treatment, lost income, and pain and suffering, up to the policy limit, which is typically $1 million or more. This policy also applies if another Uber driver hits you and that driver is uninsured or underinsured.
Your Personal Auto Insurance
If, for some reason, the rideshare company's policy is not enough to cover all of your damages, your own policy’s UM or Underinsured Motorist (UIM) coverage could potentially apply as a secondary layer of protection. This is a detail we investigate for you to ensure every available source of recovery is identified.
Pursuing the At-Fault Driver Directly
While you legally may pursue the personal assets of the at-fault driver, this is typically not a practical solution. An individual who drives without insurance frequently lacks the funds or assets to pay for the damages they have caused. Focusing on the available insurance policies is almost always the most effective path to getting your bills paid.
How Does Health Insurance Interact With Rideshare UM Coverage?
What happens if you already have health insurance—does it cover your medical bills first, or does the rideshare company’s Uninsured Motorist (UM) policy step in immediately?
If you were injured as a rideshare passenger and the at-fault driver was uninsured, both coverages may apply. In either case, it’s important to prove fault in a rideshare accident clearly, since liability determines how these different insurance policies interact and which one ultimately pays for your losses.
Does Health Insurance Pay First?
Yes. In most cases, your health insurance—whether private, Medicare, or Medicaid—will pay your medical bills as they come in. Hospitals and clinics submit claims directly to your health plan. This ensures you receive treatment right away, without waiting for the rideshare company’s UM claim to process, which may take months.
What Happens When the UM Claim Pays Out?
If the rideshare insurer later settles your injury claim, part of that payout may go back to your health insurance company. This process is called subrogation. Simply put, your insurer has the legal right to recover the money it already paid for your care. For example:
- Your health plan covers $20,000 in medical treatment.
- The UM claim settles for $100,000.
- Your health insurer may assert a lien to collect back the $20,000 it paid.
The balance of the settlement would then cover your lost wages, future care, and pain and suffering.
Why Does Subrogation Matter for You?
Subrogation affects how much of the settlement you actually keep. The larger the lien, the less money in your pocket. Part of our work as attorneys is negotiating these liens down. Many insurers agree to reduce what they take back if we can show that your settlement does not fully cover your losses.
What If You Don’t Have Health Insurance?
If you do not carry health insurance, the rideshare UM coverage becomes the primary source of payment. Medical providers may ask for upfront payment, but in many cases we arrange letters of protection—agreements where providers treat you now and get paid later from your settlement.
Understanding the Layers of Rideshare Insurance
Rideshare insurance coverage differs depending on the driver’s “status” at the exact moment of the crash.
Phase 1: The Driver is Logged Out
If the rideshare driver is not logged into the app, they are considered a private citizen. In this case, only their personal auto insurance policy would apply. The rideshare company has no involvement because, from their perspective, the driver is not "on the clock."
Phase 2: The Driver is Logged In and Waiting for a Request
The moment a driver logs into the app, a lower level of coverage from the rideshare company begins. Coverage levels vary depending on whether you’re logged in, waiting for a request, or have a passenger in the car. If you’re involved in an accident while driving for Uber or Lyft, the company’s commercial insurance is designed to step in. This typically includes contingent liability coverage, which covers injuries to others if the driver's personal insurance denies the claim. The limits are usually lower.
Phase 3: You Are in the Car (En Route to Pick Up or During a Trip)
This is the phase most relevant to active drivers. Once you’ve accepted a ride, the full commercial insurance policy is triggered. If you cause an accident while driving for Uber or Lyft, the company’s liability coverage applies, whether you’re en route to pick up a passenger or already transporting one. This is the most comprehensive layer of protection, designed primarily to safeguard passengers, and it includes two main parts:
- $1 Million+ in Third-Party Liability: This covers injuries to people in other vehicles or pedestrians if your rideshare driver is at fault.
- $1 Million+ in Uninsured/Underinsured Motorist (UM/UIM) Coverage: This is the policy that protects you. As mentioned before, it covers your injuries and losses when an uninsured or underinsured driver is at fault.
The high cost of this mandated insurance is a major factor in your fare. In some states, up to one-third of a rideshare fare goes toward paying for these policies, with a large portion dedicated to UM/UIM coverage.
What Steps Should I Take From Home After the Accident?
Your focus should be on two things: documenting your injuries and losses, and properly initiating the claim. The insurance company for the rideshare company will conduct a thorough investigation, and your role is to provide clear, consistent information that supports your case.
Here is a structured process to follow.
1. Seek Immediate and Consistent Medical Attention
Pain from a car accident may be delayed. What feels like minor soreness sometimes develops into a more serious condition like whiplash or a soft tissue injury. Go to an urgent care clinic or your primary doctor as soon as possible. Have your injuries professionally diagnosed.
Then, follow the treatment plan your doctor prescribes. Attend all follow-up appointments, physical therapy sessions, and see any specialists your doctor recommends. Gaps in treatment are used by the insurance company to argue your injuries were not caused by the accident or were not as serious as you claim.
2. Document Everything Meticulously
Create a dedicated file for all accident-related paperwork. This should include all medical bills, receipts for out-of-pocket expenses (like prescriptions or transportation to appointments), and any correspondence from insurance companies. Having everything in one place keeps you organized.
You also need to track your lost wages. Ask your employer for a letter detailing your job title, pay rate, and the specific dates and hours you missed from work due to your injuries. This provides clear proof of your lost income.
Finally, keep a simple journal. Note how the pain affects your daily life. Are you no longer able to lift your child, walk the dog, or participate in hobbies? This helps document your pain and suffering, which is a real and compensable part of your claim.
3. Report the Incident to the Rideshare Company
Use the app to report the accident. Provide the basic facts: date, time, and that you were injured. Keep it simple and factual. You do not need to provide a detailed narrative at this stage.
The rideshare company’s insurance adjuster will likely call you. You are not obligated to provide a recorded statement. It is best to decline until you have spoken with an attorney. These statements are designed to get you to say something that could be used to find inconsistencies in your story later on.
4. Contact a Law Firm that Handles Rideshare Cases
We handle all communications with the insurance companies, gather the necessary evidence, and calculate the full value of your claim, allowing you to focus on your recovery.
How LegalRideshare Injury Lawyers Help
When you are recovering from an injury, managing a complex insurance claim is the last thing you should have to worry about. Our practice is focused on these exact types of cases. Here is what we do for our clients when they are hit by an uninsured driver in a rideshare.
We Conduct a Full Investigation
We immediately work to secure evidence, such as traffic camera footage, police reports, and witness statements. We confirm all available insurance coverages, including the full policy limits of the rideshare company’s UM plan. This ensures we know the maximum amount of compensation available from the start.
We Handle All Communication
You will not have to speak with insurance adjusters. We take over all correspondence, protecting you from saying something that could be misinterpreted and used to devalue your claim. We manage the paperwork and ensure all deadlines are met, so nothing falls through the cracks.
We Calculate the True Value of Your Claim
Your damages are more than just the medical bills you have today. We work with you and your doctors to understand your future medical needs, the full extent of your lost income—including future earning capacity—and the non-economic damages related to your pain and suffering. This comprehensive approach ensures we are pursuing compensation for every aspect of your loss.
We Build Your Case and Negotiate for You
We compile all the evidence into a comprehensive demand package that is presented to the insurance company. We then handle the negotiation process. While most cases settle, we prepare every case as if it is going to trial. This approach ensures we are negotiating from a position of strength and are ready for any scenario.
Frequently Asked Questions About Rideshare Accidents with Uninsured Drivers
Does it matter which rideshare company I was using, like Uber or Lyft?
No, the process is nearly identical. Both companies are subject to state laws requiring them to carry similar high-limit insurance policies, including Uninsured Motorist coverage for passengers. The protections available to you as a passenger are consistent across the major platforms.
What if the rideshare company's insurance tries to waive its UM coverage?
In some states, rideshare companies have tried to have drivers waive this coverage. However, this waiver typically applies to the driver, not the passenger. As a passenger, you are almost always covered by the company's policy. We verify the specifics of the policy in your case to confirm your coverage.
I live in Chicago. Are there any specific Illinois laws I should know about?
Yes. Illinois law (625 ILCS 57/20) mandates that Transportation Network Companies (TNCs) carry at least $1 million in liability and UM coverage for accidents that occur while a passenger is in the vehicle. This law provides a strong foundation for your claim.
How long do I have to file a claim in Illinois?
In Illinois, the statute of limitations for a personal injury claim is generally two years from the date of the accident. You should act much sooner to preserve evidence and begin the claims process while the details are still fresh.
Do I have to pay anything up front for you to take my case?
No. We handle personal injury cases on a contingency fee basis. This means we only get paid if we successfully recover compensation for you. There are no upfront costs or fees.
Secure the Compensation You Are Owed
You paid for protection every time you took a rideshare. Now it's time to make sure that protection works for you. Let our Uber or Lyft accident lawyers handle the insurance claim so you can focus on your health and recovery. For a free review of your case, call LegalRideshare Injury Lawyers today at (312) 767-7950.