Who’s Liable? Understanding Fault in Uber & Lyft Accidents in Pennsylvania

August 29, 2025

Determining who is liable for your injuries depends entirely on the driver’s status at the moment of the crash. The responsibility could fall to the rideshare driver you were with, another motorist on the road, Uber or Lyft’s large corporate insurance policy, or even your own auto insurance.

This situation is made even more challenging by layers of insurance coverage that switch on and off depending on whether the driver was waiting for a ride request, on the way to pick you up, or actively transporting you.

A significant challenge for injured passengers is a change made by Lyft, which no longer provides uninsured or underinsured motorist coverage in Pennsylvania. This policy shift could potentially leave you with fewer options for compensation if an uninsured driver caused your accident.

At Wapner Newman, we’re here to review your case, discuss your unique situation, and explain your options in plain language. Call us at (215) 569-0900 to have that free, no-obligation conversation.

How Rideshare Insurance Works in Pennsylvania

Imagine three different insurance policies stacked on top of each other, with only one active at any given time. Which policy applies to your accident depends entirely on what the rideshare driver was doing when the crash occurred.

The Core Concept: A Driver’s Status Dictates the Coverage

The insurance coverage available for your injuries changes based on the driver’s electronic status within the rideshare app. The state legislature recognized the unique nature of this business and created specific rules to govern it. Pennsylvania law, specifically 53 Pa. Cons. Stat. Chapter 57A, sets the minimum requirements for this tiered system, ensuring there is a clear line of responsibility.

Scenario 1: The Driver’s App is Off (Personal Driving)

If the driver is using their vehicle for personal errands—picking up groceries, visiting a friend—and the rideshare app is completely off, then Uber and Lyft have no involvement. From an insurance perspective, the driver is just another motorist on the road.

In this situation, the driver’s own personal auto insurance policy is the primary and only source of coverage. The case proceeds exactly like any other car accident claim, with your claim being filed against that individual driver’s policy.

Scenario 2: The App is On, Driver is Waiting for a Request (Period 1)

The moment a driver logs into the Uber or Lyft app and becomes available to accept ride requests, a new layer of insurance coverage clicks on. This is called “Period 1.” The driver may be parked or driving around, waiting for their phone to ping with a new passenger.

During this phase, rideshare companies are required to provide liability coverage that pays for injuries or damages their driver causes to other people. The minimums mandated by Pennsylvania law are:

$50,000 per person for bodily injury liability.
$100,000 per accident for total bodily injury liability.
$25,000 per accident for property damage.

This coverage is for third parties, such as another driver or a pedestrian injured by the rideshare driver’s actions while they were waiting for a fare.

Scenario 3: Driver Accepts a Ride and is Actively Working (Periods 2 & 3)

This is the scenario that applies to you as a passenger. From the instant your driver accepts your ride request (Period 2) until the moment you are dropped off at your destination (Period 3), Uber and Lyft’s full commercial insurance policies apply.

This is the highest level of coverage available. The companies provide at least $1 million in third-party liability coverage. This robust policy is designed to cover injuries to you, the paying passenger, as well as any pedestrians, bicyclists, or occupants of other vehicles who might be injured by the rideshare driver’s negligence during your trip. It is this policy that is most often the target in a passenger’s injury claim.

Identifying Who to Hold Accountable: The Four Potential Parties

After a rideshare accident, the search for compensation begins by identifying every party who could be legally at fault.

1. The Uber or Lyft Driver

The most direct person to hold accountable is, of course, the driver of the car you were in. If their carelessness caused the crash, they can be held personally liable for your injuries. This could involve any number of negligent actions, such as:

Speeding to complete a fare more quickly.
Following another car too closely.
Becoming distracted by their phone or GPS.
Running a red light or stop sign.
Making an unsafe lane change.

Even though a larger insurance policy may be in effect, the driver’s actions are the trigger for that policy to respond.

2. Another At-Fault Driver

In many crashes, the rideshare driver did nothing wrong. The accident may have been caused entirely by the driver of a different vehicle. If a non-rideshare driver ignores a stop sign and plows into the side of your Uber, their auto insurance becomes the primary target for your injury claim.

This is a common scenario, and it is where the specific type of coverage provided by Uber versus Lyft can make a significant difference in your ability to recover your losses, especially if that other driver is uninsured.

3. Uber or Lyft (The Company)

Holding the rideshare company itself directly liable for a crash is more complicated. Uber and Lyft have built their business models on classifying their drivers as independent contractors rather than employees. This legal distinction shields them from direct responsibility for a driver’s negligent actions on the road.

However, this shield is not absolute. A case may be made against the company for its own negligence in how it manages its platform and drivers. Two primary arguments are:

Negligent Hiring: This argument could be made if the company failed to conduct a reasonably thorough background check and onboarded a driver with a documented history of drunk driving, reckless driving convictions, or other red flags that should have disqualified them.
Negligent Retention: This applies if the company was made aware that a driver was a danger but failed to act. For instance, if passengers had filed multiple, credible complaints about a driver’s unsafe habits—such as texting while driving or falling asleep at the wheel—and the company ignored the warnings and kept them on the platform, they could be held liable for a subsequent crash.

Proving corporate negligence requires a deeper investigation, but it might be a valid path to accountability in certain cases.

4. Your Own Insurance Policy

It may seem counterintuitive, but your own car insurance policy could be a source of recovery after a rideshare accident.

If the at-fault driver—whether it’s your rideshare driver in Period 1 or another motorist—is uninsured or does not have enough insurance to cover the full cost of your medical bills and lost income, you may be able to turn to your own policy for Uninsured/Underinsured Motorist (UM/UIM) coverage.

Uber’s UM/UIM Coverage vs. Lyft’s

Uninsured and Underinsured Motorist (UM/UIM) coverage is a financial safety net. Think of it as emergency financial first aid that you purchase as part of your own auto policy. It is designed to step in and pay for your injuries and losses when the person who caused the accident either has no insurance at all (uninsured) or has a policy limit that is too low to cover the full extent of your damages (underinsured).

Uber’s Policy for Pennsylvania Passengers

While you are a passenger in an Uber in Pennsylvania—from the moment the driver is en route to pick you up until you are dropped off—the company provides $1 million in UM/UIM coverage. This is a significant protection. If another driver causes your accident and they are uninsured or flee the scene, this Uber policy is there to cover your medical bills, lost wages, and other damages. This coverage applies automatically to you as a passenger.

Lyft’s Policy Change: A Removed Protection

In a major policy shift that directly affects passengers in our state, Lyft eliminated its UM/UIM coverage for Pennsylvania passengers in April 2020. The company continues to provide the required $1 million in liability coverage if your Lyft driver causes an accident, but it no longer offers this specific protection if another, uninsured driver is at fault.

What this means for you: If you are injured while riding in a Lyft by an uninsured or underinsured driver, Lyft’s insurance will not cover your losses. Your only recourse would be to rely on the UM/UIM coverage from your own personal car insurance policy, assuming you have one and purchased that specific type of coverage. If you do not own a car or chose not to buy UM/UIM coverage, you may be left with very limited options for financial recovery. This policy difference makes understanding who’s liable in an Uber or Lyft accident even more pressing.

What if I Was Partially at Fault? Pennsylvania’s “Modified Comparative Negligence” Rule

Pennsylvania law has a specific and fair rule for this exact scenario.

The legal concept is called modified comparative negligence. In simple terms, it means you can still recover financial compensation for your injuries as long as you are found to be 50% or less at fault for the accident. Your role in the accident will be weighed against the role of the other parties.

Your total compensation award will then be reduced by your percentage of fault. For example, if a case results in a $100,000 award but you are found to be 10% at fault, your final recovery would be reduced by 10%, to $90,000. However, if you are found to be 51% or more at fault, Pennsylvania law bars you from recovering any compensation at all.

Arbitration Clauses

When you first downloaded the Uber or Lyft app and clicked “I agree,” you accepted the company’s terms of service. Buried deep within the fine print of that agreement is something called an arbitration clause. This is a legal provision that has a significant impact on how your injury claim will be handled.

This clause is a contract provision that requires you to resolve most injury claims through a private process called arbitration, rather than in a public courtroom before a judge and jury. Both Uber and Lyft added these mandatory clauses to their user agreements, fundamentally changing the landscape for injured passengers.

This does not mean you cannot pursue a claim. It simply means the process is different. Instead of filing a lawsuit and presenting your case to a jury of your peers, the case is heard by a neutral third-party arbitrator. This arbitrator, usually a retired judge or experienced attorney, listens to the evidence from both sides and then makes a legally binding decision. Our firm handles claims in arbitration and understands how to build and present a compelling case in that specific setting.

Frequently Asked Questions About Pennsylvania Rideshare Accidents

What if the at-fault driver was from out of state?

This does not change your right to file a claim here in Pennsylvania, which is where the accident occurred and where the harm was done. However, it can add procedural complexities when dealing with an out-of-state insurance company and their adjusters. But do not worry: we are accustomed to handling these communications and ensuring that the claim proceeds correctly under Pennsylvania law.

Do I have to pay for my medical treatment upfront?

Initially, your medical bills will typically be submitted to your own health insurance or, if you have it, the Medical Expense Benefits (MedPay) coverage from your personal auto policy. A personal injury claim then seeks to recover all of those costs, as well as anticipated future medical expenses, from the at-fault party’s insurance. You should not be left with a mountain of debt for an accident you did not cause.

Can I still file a claim if I wasn’t wearing a seatbelt?

Yes, you can. In Pennsylvania, the failure to wear a seatbelt cannot be used to prevent you from making a claim for your injuries. However, the defense may try to argue that your injuries would have been less severe if you had been buckled up. They might use this to try and reduce your compensation under the comparative negligence rule we mentioned earlier, but it does not bar your claim entirely.

What if I was a pedestrian or bicyclist hit by an Uber or Lyft?

Your rights as an injured third party are determined by the same insurance rules. The driver’s status within the app at the moment you were hit dictates which insurance policy—their personal policy, the lower-tier rideshare coverage, or the full $1 million liability policy—applies to your claim for damages.

Will my case have to go to court?

The vast majority of personal injury cases are settled before a trial becomes necessary. Given the mandatory arbitration clauses now used by both Uber and Lyft, it is far more likely that your case would be resolved through skilled settlement negotiations or, if needed, a formal arbitration hearing rather than a traditional jury trial.

Let Wapner Newman Untangle the Details

You have enough to worry about with your physical and emotional recovery. Your focus should be on getting better, attending your medical appointments, and putting your life back together—not on deciphering complex insurance policies and legal statutes. The question of who’s liable after an Uber or Lyft accident in Pennsylvania is one we are prepared to answer.

Call us today for a free, no-obligation consultation at (215) 569-0900.