Rideshare services like Uber and Lyft are now a central part of transportation in Boston and throughout Massachusetts. But when a rideshare trip ends in an accident – whether you’re a passenger in the rideshare vehicle, another driver hit by an Uber or Lyft, or a pedestrian struck by a rideshare car – the insurance coverage picture is far more complicated than in a standard car accident. Here is what Massachusetts riders and accident victims need to know.
How Uber and Lyft Insurance Works in Massachusetts
Both Uber and Lyft provide insurance coverage for drivers operating on their platforms, but the coverage depends on the driver’s status at the time of the accident. Massachusetts requires Transportation Network Companies (TNCs) to maintain specific insurance coverage under state regulations.
When the App Is Off – If the driver has the app turned off, they are operating as a private individual, and only their personal auto insurance applies. Uber and Lyft provide no coverage in this phase.
When the App Is On But No Ride Accepted (Phase 1) – The driver is logged in and waiting for a ride request. In Massachusetts, Uber and Lyft must maintain contingent liability coverage during this phase: $50,000 per person, $100,000 per incident, and $25,000 for property damage. This coverage only applies if the driver’s personal auto insurance does not cover the incident (many personal policies exclude commercial activity).
When a Ride Is Accepted or a Passenger Is in the Vehicle (Phases 2 and 3) – Once the driver accepts a ride request and until the passenger is dropped off, Uber and Lyft are required to maintain $1 million in liability coverage and $1 million in uninsured/underinsured motorist coverage in Massachusetts. This is the most important phase for injured passengers.
If You Were a Passenger Injured in a Rideshare Accident
If you were injured as a passenger in an Uber or Lyft, you are entitled to pursue a claim against whatever party was at fault – which may be the rideshare driver, another driver, or both. When the accident occurs during an active ride (Phase 2 or 3), the $1 million policy is available. You should not assume the claim process will be simple – Uber and Lyft have experienced claims management systems designed to minimize payouts, and having an attorney is important.
If a Rideshare Driver Hit Your Car or Injured You as a Pedestrian
If you were in another vehicle or were a pedestrian struck by an Uber or Lyft driver, the coverage phase analysis above determines which insurance applies. If the driver had a passenger or had accepted a ride, the $1 million policy applies. If the app was off, only the driver’s personal insurance applies. Identifying the driver’s status at the time of the crash is one of the first steps in the investigation.
Massachusetts PIP and Rideshare Accidents
Massachusetts no-fault PIP coverage generally applies to rideshare accidents – but determining which policy pays PIP (your own, the rideshare driver’s, or Uber/Lyft’s) can be complicated depending on the phase of the ride and whether you are a passenger or another driver. An attorney experienced with rideshare accident claims can navigate this quickly and ensure you access all available benefits.
Contact Larson Law After a Massachusetts Rideshare Accident
Rideshare accident claims require prompt investigation to document the driver’s app status at the time of the crash, identify the correct insurer, and preserve critical evidence. At Larson Law, we handle rideshare accident cases throughout Massachusetts. Contact us for a free consultation.