Uber or Lyft accident in New Jersey: whose insurance pays?

The law behind rideshare insurance

New Jersey's Transportation Network Company Safety and Regulatory Act sets insurance rules for companies like Uber and Lyft and their drivers. The insurance section, N.J.S.A. 39:5H-10, says the required coverage can be carried by the driver, the company, or a combination, and it must be primary.

The amount of coverage depends on the driver's status in the app when the crash happened. That's why one of the first questions in any rideshare claim is: was the app on, and was there a passenger?

Rideshare drivers use their own personal cars, which creates gaps that didn't exist with traditional taxis. The TNC law sets out what coverage must be in place at each stage, and it says the company's coverage can't depend on a personal insurer denying the claim first.

Coverage by app status

Here's how the statute breaks it down.

The app-off period is where most confusion happens. A driver who was heading home after logging off is generally just a private driver, while a driver who was logged on but hadn't accepted a request falls into the lower-limit period. A few minutes can change which insurance applies.

• App off: the driver is just a private driver. Their own personal auto policy is generally what applies.
• Logged on and available, no ride yet: at least $50,000 per person and $100,000 per incident for bodily injury, $25,000 for property damage, primary PIP, and uninsured/underinsured motorist coverage as required by state law.
• During a prearranged ride: at least $1,500,000 in liability coverage for death, injury and property damage, $1,500,000 in uninsured/underinsured motorist coverage, and at least $10,000 in medical payments coverage that benefits only the driver.

If the driver's coverage falls short

If the driver's own insurance has lapsed or doesn't provide the required coverage, the statute says the rideshare company's insurance must step in from the first dollar of the claim, and the company has a duty to defend the claim. The company's coverage also can't be conditioned on a personal auto insurer denying the claim first.

After a crash, a rideshare driver must give insurance information to anyone involved and to the police on request, and must disclose whether they were logged on or giving a ride at the time.

The statute also says the required coverage may be provided by an insurer licensed in New Jersey or an eligible surplus lines insurer, and that it satisfies the state's financial responsibility laws.

Passengers, other drivers and pedestrians

If you were a passenger, the $1.5 million liability coverage generally applies to the ride. There's an important protection here too: under N.J.S.A. 39:5H-10(j), neither the rideshare company nor its driver can use the limitation on lawsuit (verbal threshold) defense in a lawsuit arising from a prearranged ride. In plain terms, they can't argue your injury wasn't serious enough to qualify for pain and suffering under that rule.

If you were in another car, your own PIP typically pays your medical bills first, as in any New Jersey crash, and you may have a liability claim against the rideshare driver's coverage.

If you were walking, your own or a household member's PIP usually comes first. In July 2026, the Appellate Division ruled in Boone v. Unsatisfied Claim and Judgment Fund that the commercial policy covering Lyft had to provide PIP to an uninsured pedestrian struck by a Lyft driver.

Rideshare drivers who are injured have their own coverage questions. During a prearranged ride, the required medical payments coverage of at least $10,000 benefits the driver. Drivers can also check whether their personal policy or any rideshare endorsement provides additional protection.

Fault and shared blame

Rideshare crashes don't always involve a careless rideshare driver. Sometimes another driver caused it. Either way, New Jersey's comparative negligence rule (N.J.S.A. 2A:15-5.1) allows recovery as long as your share of fault isn't greater than the defendant's, with your award reduced by your percentage. Passengers are rarely found at fault for a crash.

When another driver caused the crash, a passenger may have claims against that driver's insurance and potentially the rideshare coverage too, depending on the facts. Sorting out which policy pays first is often one of the trickiest parts of these cases.

Deadlines and records to keep

Most injury lawsuits arising from rideshare crashes must be filed within two years under N.J.S.A. 2A:14-2. In-app records like your ride receipt, the route, trip times and the driver's name can help prove the driver's status, so save screenshots before anything changes.

Food delivery apps are not treated the same as passenger rides. In Malzberg v. Josey (2022), the Appellate Division held that the rideshare law's insurance requirements apply only to prearranged rides, so an Uber Eats driver hurt during a delivery couldn't claim the Act's underinsured motorist coverage. Delivery crashes may need a closer look at which policies apply.

Keep copies of medical records, bills and proof of missed work, just as you would after any crash. If an adjuster calls, you can ask for the claim number and policy information in writing before discussing details.

Why these claims can be complicated

Rideshare crash claims often involve several insurers at once: the rideshare company's commercial insurer, the driver's personal auto insurer, your own insurer, and possibly another driver's insurer. Each may take the position that someone else should pay first.

Proving the driver's app status is often the starting point. The driver is required by statute to disclose on request whether they were logged on or providing a ride, and the company keeps detailed trip data. Your own app screenshots, the time of your request and messages with the driver can all help pin down which coverage period applies.

Uber and Lyft also have their own internal reporting systems. Reporting the crash through the app creates a record, but it isn't a substitute for a police report or for notifying the insurers that may be responsible.