You’re heading home in a Lyft or Uber when your rideshare vehicle is suddenly hit by another car. Sirens wail, traffic piles up, and within moments, your life changes. Whether you’re the passenger, another driver, or even a pedestrian, rideshare accident claims can be far more complicated than typical motor vehicle accidents.
With California’s evolving laws—including the recent 2025 insurance requirement updates and the July 2024 California Supreme Court decision upholding Proposition 22—understanding how these regulations affect your ability to receive fair compensation is more critical than ever. Here’s why legal help is often necessary to secure the best outcome.
Key California Laws That Shape Rideshare Accidents
AB5: The Employee Classification Push
Assembly Bill 5 (AB5) was initially passed to offer more protections to gig workers. It aimed to classify rideshare drivers as employees, entitling them to benefits like health insurance, paid leave, and legal protections. Under this law, drivers could access broader liability protections through their employer (rideshare companies).
Proposition 22: The Independent Contractor Exception
Prop 22 reversed parts of AB5 by allowing Uber, Lyft, and similar platforms to continue classifying drivers as independent contractors, not employees. In July 2024, the California Supreme Court unanimously upheld Proposition 22 as constitutional, solidifying this framework.
While it offers limited benefits, such as accident coverage during active rides, this classification limits the company’s direct responsibility, significantly complicating liability in rideshare accident claims.
2025 Insurance Updates You Need to Know
As of January 2025, California increased minimum personal auto insurance requirements to $30,000/$60,000/$15,000 (up from $15,000/$30,000/$5,000). However, rideshare drivers face even stricter requirements during different driving phases.
How These Laws Impact Liability and Insurance Coverage
In any personal injury claim after a rideshare accident, establishing liability and insurance responsibility is critical, but increasingly complex. Here’s what coverage applies when:
Driver’s Status | Insurance Requirement |
App Off | Driver’s personal auto insurance |
App On (No Ride) | $50,000 per person/$100,000 per accident for bodily injury, $30,000 property damage |
En Route or Active Ride | $1 Million in liability coverage from the rideshare company |
Critical Coverage Gaps: Personal auto insurance policies typically exclude commercial driving activities. This means drivers may face coverage gaps that complicate injury claims during the “app on, waiting for the ride” period.
Important Deductible Issue: Uber and Lyft maintain $2,500 deductibles for comprehensive and collision coverage, which is significantly higher than typical personal policies. This can affect your recovery options.
You Shouldn’t File Alone: The Need for Legal Help
After a crash, you may feel pressured to file your insurance claim quickly, especially if you’re missing work or facing growing medical bills. However, this is not the time to go it alone. Insurance policies tied to rideshare services are multi-layered and aggressively defended by experienced legal teams and insurance adjusters. What seems like a generous offer may only cover a fraction of your actual losses.
Our personal injury attorney can help:
- Determine who is truly at fault—Was the fault driver the rideshare driver, another vehicle, or both?
- Identify all liable parties—Including rideshare companies, third-party drivers, and even vehicle manufacturers if defective products were involved.
- Negotiate with insurance providers—A skilled attorney knows how to counter lowball tactics and maximize the value of your claim.
- Secure documentation—From police reports and ride data to detailed medical attention records.
Example: A client near Slauson Avenue was riding in a Lyft when a speeding vehicle ran a red light and collided with their rideshare vehicle. The insurance company initially argued that the rideshare driver was off-duty, offering only $15,000 in damages. Our legal team recovered app data showing the driver was actively en route to a pickup, triggering the $1 million policy. This evidence helped secure a $140,000 settlement covering medical bills, emotional distress, and long-term therapy.
Disclaimer: Every case is unique. Settlement amounts depend on specific facts, injuries, and liability determinations.
Types of Damages You May Be Entitled To
After a rideshare crash, injured parties can pursue various types of damages:
Economic Damages
- Medical care and hospitalization costs
- Lost income or future loss of earnings
- Property damage repairs or replacements
Non-Economic Damages
- Emotional distress and trauma
- Pain and suffering
- Loss of enjoyment of life and social relationships
Punitive Damages
Awarded when the liable parties act with gross negligence, such as reckless driving or failing to maintain vehicle safety.
Common Injuries in Rideshare Accidents
Rideshare accidents can lead to severe, sometimes life-altering personal injuries, including:
- Traumatic brain injuries (TBIs) and concussions
- Spinal cord injuries and nerve damage
- Multiple fractures and orthopedic trauma
- Soft tissue injuries and whiplash
- PTSD and anxiety disorders
- Internal injuries requiring emergency surgery
Even seemingly minor symptoms—like persistent headaches or anxiety—deserve immediate medical attention. Early medical care is crucial for your recovery and for building a strong legal case.
What Should You Do After a Rideshare Crash?
Whether you’re in an Uber accident, a pedestrian accident, or struck by a rideshare vehicle, follow these critical steps:
- Call emergency services and get medical attention immediately.
- Document the accident scene: take photos, note the license plate, and save app screenshots.
- Get witness info and file a police report.
- Do not speak with insurance companies until you’ve consulted a personal injury attorney.
When to Call a Rideshare Accident Lawyer in Crenshaw
The moment you’re injured in a crash involving a rideshare app, time matters. An experienced attorney can help you:
- Determine if you’re eligible for financial compensation
- Navigate complex insurance and driver classification issues
- Take the weight off your shoulders while you focus on recovery
At Farahi Law Firm, our rideshare accident attorneys in Crenshaw offer legal support tailored to California’s evolving laws. As a trusted personal injury law firm, we work on a contingency fee basis, meaning you don’t pay unless we win. We also understand how the claims process works with major rideshare companies and how to challenge unjust denials or undervaluations.
Your Rights Deserve Expert Protection
Rideshare accident claims are not straightforward, and California law only adds more complexity. With multiple layers of insurance coverage, shifting driver classifications, and aggressive insurance companies, accident victims need more than just a form—they need legal advocates.
If you’ve been injured in an Uber, Lyft, or other rideshare vehicle crash, don’t go it alone. A knowledgeable rideshare accident lawyer in Crenshaw can guide you through the legal process, protect your rights, and pursue the maximum compensation you deserve.
Contact us today for a free consultation. Let us help you recover from your injuries and take on the rideshare services and insurers that stand in your way.
FAQs: California Rideshare Accident Claims (Updated 2025)
Liability from a rideshare accident depends on the driver’s app status. If the driver was actively using the app or transporting a passenger, the rideshare company’s $1 million insurance typically applies. If the app is off, only the driver’s personal auto insurance applies.
Generally, two years from the date of the accident, but certain circumstances can affect this timeline. Contact a personal injury attorney promptly to preserve your rights and protect critical evidence.
Uber and Lyft provide $1 million uninsured/underinsured motorist coverage during active rides and en route periods. Your own UM coverage may also apply depending on circumstances.
California’s increased minimum requirements (30/60/15) mean better personal coverage when drivers are off-duty, but rideshare-specific coverage remains the same during app-based activities.
