Corinne Holt | Sep 01 2025 20:00

Rideshare Crashes: Uber/Lyft Insurance Coverage Explained

A straightforward guide-and how Holt Law helps

 

Getting hurt in an Uber or Lyft crash is confusing. Are you covered by the rideshare company's policy, the driver's personal insurance, or your own policy? At Holt Law, we help injured passengers, other drivers, pedestrians, and even rideshare drivers sort out insurance layers, prove fault, and recover full compensation. This plain-English guide explains how Uber/Lyft coverage works in New Mexico and what to do next if you were injured.

 

What counts as "rideshare insurance"?

 

Rideshare insurance refers to the special policies Uber and Lyft carry for drivers while the app is on. Coverage changes based on driver status:

 

  • App off (personal use): Only the driver's personal auto policy applies.
  • App on, waiting for a ride: Limited contingent liability coverage from the rideshare company may apply if the driver's personal insurer won't cover it.
  • En route to pick up a rider or during a trip: A much larger third-party liability policy (commonly up to $1,000,000) applies, along with other coverages that can include uninsured/underinsured motorist (UM/UIM) and contingent collision/comprehensive for the driver's car.

 

 

Key terms made simple

 

  • Third-party liability: Pays people hurt by the rideshare driver's negligence (e.g., you, as a passenger or another road user).
  • UM/UIM: If the other driver is uninsured or underinsured, UM/UIM can pay your injuries. Rideshare policies often include this during a trip.
  • Contingent collision/comprehensive: Helps fix the rideshare driver's vehicle during an active trip -usually only if the driver also has these coverages on a personal policy and after a sizable deductible.
  • Deductible: The amount paid out-of-pocket before coverage kicks in (rideshare deductibles can be high).

 

 

New Mexico is an at-fault state, so the negligent party-and their insurer-pay for injuries and losses.

 

Why this matters to you

 

A rideshare crash can trigger multiple insurers pointing fingers at each other. If you don't identify the correct coverage and prove the driver's app status, you risk:

 

  • Unpaid medical bills and out-of-pocket costs
  • Lost income if you can't work
  • Lowball settlements because an insurer claims a lower coverage tier applies
  • Delays while companies "investigate" who should pay

 

 

Knowing the coverage phase-and documenting it-protects your claim value.

 

The coverage phases (and what they mean for your claim)

 

1) App off

 

  • Who's covered? Only the driver's personal policy.
  • Typical situation: Driver was between gigs or using the car privately.
  • Your action: Treat it like any other auto claim against the at-fault driver.

 

 

2) App on, no ride accepted (waiting)

 

  • Who's covered? Rideshare contingent liability may apply if the driver's personal insurer denies.
  • Why it's tricky: Lower limits and more disputes about whether the app was truly "on."
  • Your action: Preserve proof the driver was online (see checklist below).

 

 

3) En route to pick up / passenger in the car (active trip)

 

  • Who's covered? The rideshare company's highest liability limits typically apply; UM/UIM often applies too.
  • Good news: This is where the largest coverage usually exists, which is critical for serious injuries.

 

 

Step-by-step: What to do after a rideshare crash

 

  1. Call 911 and get medical care. Your health-and a medical record-come first.
  2. Photograph and video the scene: vehicle positions, damage, skid marks, traffic signals, road hazards.
  3. Capture driver status: If you can, screenshot the driver's app showing "en route/picking up/in trip." Ask the driver to confirm status in text.
  4. Collect information: Driver's name, plate, rideshare platform, insurance info (personal and rideshare if available), witness contacts, police officer name and report number.
  5. Report in the app(if you're a passenger). Keep a copy of any acknowledgement email.
  6. Avoid recorded statements to any insurer (even your own) before you speak with an attorney.
  7. Save everything: Medical bills, pharmacy receipts, ride receipts, time-off records, and communications with insurers and the rideshare company.
  8. Call Holt Law. We'll notify the right insurers, preserve evidence (including possible dashcam data), and manage deadlines.

 

 

Common scenarios (with examples)

 

Passenger injured in an Uber

 

  • Coverage: Uber's trip-phase liability (and often UM/UIM) is primary.
  • Example: You're hurt when your Uber is rear-ended on I-25. Even if the other driver is uninsured, UM/UIM from the rideshare policy may apply.

 

 

Another driver hit by a Lyft

 

  • Coverage: Lyft's liability coverage applies if the Lyft driver was at fault and "on the app." Limits depend on phase.
  • Example: You're driving on Central Ave. A Lyft driver, "on trip," makes an unsafe left turn. The higher trip-phase coverage should apply.

 

 

Pedestrian struck by an online driver

 

  • Coverage: If the driver was online, contingent or trip-phase coverage can apply.
  • Example: A driver "waiting for requests" hits you in a crosswalk. The rideshare insurer may argue for lower "waiting" limits-documentation matters.

 

 

Hit-and-run during a rideshare trip

 

  • Coverage: UM/UIM under the rideshare policy may cover you.
  • Example: Your Uber is sideswiped on I-40; the other car flees. UM/UIM often fills the gap.

 

 

Issues clients often face (and how to counter them)

 

"Was the app really on?"
Insurers sometimes dispute app status to reduce coverage. Evidence: app screenshots, trip receipts, in-app support emails, telematics, dashcam.

 

Coverage ping-pong
Personal carrier says "the rideshare company should pay," and the rideshare carrier says "the personal policy should pay." We pin down written coverage positions and pursue the correct insurer.

 

Lowball offers
A quick settlement rarely reflects full damages (future care, lost earning capacity, pain and suffering). We value claims using medical documentation and, when needed, expert opinions.

 

Recorded statements & releases
Adjusters may seek recorded statements or broad medical authorizations. We handle communications so you don't say anything insurers can twist.

 

Property damage vs. injury
Rideshare claims often involve multiple coverages-collision/comprehensive, liability, and UM/UIM. We coordinate to keep your bills covered and avoid gaps.

 

Delays
When an insurer drags its feet without good cause, we escalate and, if necessary, pursue a bad-faith strategy.

 

How Holt Law helps-and why having counsel matters

 

  • We identify the right coverage quickly. App status determines limits. We gather app data, trip logs, and witness statements to lock this down.
  • We prove fault and damages. From traffic-cam requests to accident reconstruction, we build a compelling liability story and a complete medical picture.
  • We coordinate all insurance layers. Personal auto, rideshare, and your own UM/UIM/MedPay can overlap-we sequence claims to maximize net recovery.
  • We protect your claim value. No recorded statements, no premature releases, no missing damages categories.
  • We litigate when needed. Strong trial readiness (and a willingness to file) tends to produce serious settlement offers.

 

 

You focus on treatment; we take care of the legal and insurance fight.

 

What compensation can you recover?

 

Depending on the case, New Mexico law allows claims for:

 

  • Medical expenses(ER, surgery, rehab, future care)
  • Lost wages & loss of earning capacity
  • Pain and suffering and loss of enjoyment of life
  • Property damage(vehicle, phone, bike, etc.)
  • Wrongful death damages for families, when a crash is fatal

 

 

Frequently asked questions

 

Do I use my health insurance if I'm a passenger?
Yes-use it to get care now. We'll coordinate so liens are handled and you're not stuck with surprise bills.

 

Will filing a UM/UIM claim raise my premiums?
If you're not at fault, a UM/UIM claim generally shouldn't trigger a rate increase. Policies vary-ask us to review yours.

 

What if I'm a rideshare driver who was hit?
You may tap the rideshare collision coverage (during a trip), the at-fault driver's liability, and your own UM/UIM. We stack the right coverages in the right order.

 

How long do I have to file?
New Mexico's statute of limitations for personal injury is generally three years, but important notice and evidence deadlines come much sooner. Call us promptly.

 

Practical checklist (print or save)

 

  • Get medical care; follow doctor's orders
  • Photos/video of vehicles, scene, and injuries
  • Screenshot driver's app status if possible
  • Gather names, plates, insurance, witness info
  • Save ride receipt and app messages
  • Request the police report number
  • Avoid recorded statements & broad releases
  • Call Holt Law before negotiating

 

 

Call Holt Law for a free, no-pressure case review

 

If you were hurt in an Uber/Lyft crash-as a passenger, driver, cyclist, or pedestrian-let us confirm the coverage phase, protect your rights, and pursue the maximum compensation the law allows. We work on a contingency fee: no fee unless we win.

 

Call (505) 312-5353 or [Contact Us] to get started.

 

Proudly serving Albuquerque, Rio Rancho, Santa Fe, Las Cruces, Farmington, Roswell, Truth or Consequences, and communities across New Mexico.