Rideshare Accidents in Utah: Uber, Lyft, and the Complexities of Insurance Coverage

Coverage can get complicated

Rideshare apps like Uber and Lyft have woven themselves into the fabric of daily life in Utah. From Salt Lake City to Provo to Ogden, people use them to get to the airport, ride home after a Jazz game, or make the climb to Park City without worrying about snowy canyon roads. They are convenient, often cost-effective, and for many, a safer alternative to driving after a night out.

But when an Uber or Lyft ride ends in a crash, the convenience can quickly give way to confusion. Suddenly, passengers and even drivers find themselves asking: who pays for the damage? Is it the driver’s personal insurance? The rideshare company’s multimillion-dollar policy? Or does your own insurance come into play?

The answer is complicated, because rideshare insurance doesn’t look like regular car insurance. It changes depending on what the driver was doing at the moment of the crash, and it often overlaps with Utah’s no-fault laws. To understand who pays when, you have to walk through the different “periods” of coverage, the state’s insurance requirements, and the realities of how these cases actually play out in courtrooms and at negotiation tables.

Why Rideshare Accidents Are More Complicated Than Regular Crashes

In a traditional car accident, there are usually two parties: the at-fault driver and the victim. Utah’s no-fault insurance system means your own PIP coverage pays first, and if your injuries are serious enough, you can pursue a liability claim against the driver who caused the crash.

Rideshare accidents, however, often involve at least three parties. There is the rideshare driver, who may be at fault or may also be a victim. There is the rideshare company itself, which has its own policies that apply only at certain times. And there may be another driver whose negligence caused the crash. All of this leaves the passenger—who didn’t cause any of it—caught in the middle, wondering where to turn.

The central complication comes from the fact that rideshare drivers use their own cars but are also working for a multibillion-dollar tech platform. At any given moment, responsibility may shift between the driver’s personal insurer, Uber’s or Lyft’s policy, or another motorist’s insurance.

The Three Periods of Rideshare Coverage

Uber and Lyft divide insurance responsibilities into three distinct “periods.” These periods determine whether the company’s coverage applies and, if so, how much.

When the app is turned off, the driver is just another motorist. Only their personal insurance applies. Neither Uber nor Lyft bears any responsibility because the driver is not “on the clock.”

When the app is turned on but the driver hasn’t yet accepted a passenger, a limited form of coverage kicks in. Uber and Lyft both provide contingent liability coverage during this window—$50,000 per person, $100,000 per accident, and $25,000 for property damage. It is meant to step in if the driver’s personal policy doesn’t cover the accident, which is common since many policies exclude “commercial activity.”

The most important coverage applies once the driver has accepted a ride request or has a passenger in the car. At that point, Uber and Lyft provide up to $1 million in liability coverage, along with uninsured and underinsured motorist protection. For passengers, this is the strongest safety net. If you are injured while riding in an Uber or Lyft, you usually have access to that $1 million policy, whether your driver or another motorist caused the crash.

How Utah’s No-Fault Law Fits In

Layered on top of this is Utah’s no-fault insurance system. Every driver must carry at least $3,000 in personal injury protection (PIP) coverage, which pays for immediate medical expenses regardless of fault.

If you are a passenger in an Uber or Lyft, your situation is slightly different. You may still have PIP through your own insurance policy, but because you were engaged in a commercial ride, Uber’s or Lyft’s policies often take precedence once you’ve crossed into Period 3. If another driver caused the crash, their insurance also comes into play once your medical expenses exceed the no-fault threshold.

This overlap is where disputes often arise. Insurers argue over who pays first, leaving passengers in limbo while their medical bills accumulate.

What Happens in Real-Life Scenarios

Consider being rear-ended while riding in a Lyft. The other driver is clearly at fault. In theory, their insurance should pay. But because you were a passenger, Lyft’s $1 million policy is also on the table. Lyft may pay out your claim first and then turn around and seek reimbursement from the at-fault driver’s insurer.

Or imagine your Uber driver runs a stop sign and causes a collision. You, as the passenger, are injured. In this case, Uber’s policy covers you directly, even if the driver’s personal insurance refuses to pay. That’s one of the reasons rideshare companies maintain such large liability policies.

Now flip the perspective. Suppose you are a pedestrian struck by an Uber driver who is logged into the app but hasn’t accepted a ride. The company’s limited contingent policy may apply, but first the driver’s personal insurance is expected to step in.

The situation changes again if you were about to get into a Lyft when your driver crashed while pulling up to the curb. Because the ride had already been accepted, Lyft’s full $1 million coverage applies—even though you hadn’t physically entered the car yet.

Why Insurers Fight Over Rideshare Claims

On paper, the periods of coverage seem clear. In reality, insurance companies frequently fight over them. Was the driver logged in? Had they accepted a ride? Did they end the trip in the app before the crash? Each detail can shift millions of dollars in responsibility.

Personal auto insurers often deny coverage outright when a driver is working for hire, forcing passengers to rely on Uber’s or Lyft’s backup policies. Meanwhile, rideshare insurers may delay or offer low settlements, arguing that another policy should pay first. These disputes drag out claims and add stress for victims who only want their medical bills and lost wages covered.

Utah’s Legal Framework

To bring some order to this chaos,

Utah law requires rideshare companies to maintain at least $1 million in liability coverage during active rides. This requirement emerged after heated debates across the country about how to regulate ridesharing. The compromise was clear: passengers needed strong protections, and companies needed to bear responsibility while profiting from rides.

Still, one unresolved question looms large: are Uber and Lyft drivers employees or independent contractors? For now, they are treated as contractors, which allows the companies to sidestep certain legal responsibilities. But courts across the country continue to revisit this issue. If drivers are ever reclassified as employees, liability rules could change dramatically.

The Role of Lawyers in Untangling Coverage

Given all these moving parts, rideshare accidents often require legal help. An experienced attorney does more than just file a claim. They investigate the accident, identify every available policy, and push back when insurers point fingers at one another. They also understand doctrines like subrogation and “priority of coverage,” which affect who pays first and how much.

Without an advocate, passengers may accept lowball offers or wait months while insurers bicker. With one, they can cut through the noise and focus on healing.

A Story of One Utah Passenger

Consider a passenger riding home from downtown Salt Lake after a concert. She takes a Lyft, trusting the app to deliver her safely. On the way, her driver is rear-ended by a distracted motorist. The crash leaves her with a broken wrist and mounting medical bills.

At first, she assumes Lyft will cover everything. Then the at-fault driver’s insurer insists it is their responsibility. Meanwhile, her own PIP kicks in but only covers a fraction of her care. She finds herself stuck in the middle, with no single insurer stepping up.

With an attorney’s help, she learns that Lyft’s $1 million coverage applies fully during the ride. Her lawyer presses Lyft’s insurer, negotiates reductions of subrogation claims, and coordinates benefits so she walks away with a settlement that truly covers her needs.

Her case shows why understanding the insurance maze is so crucial. Without guidance, she might have settled for far less.

Final Thoughts

Rideshare services have revolutionized how we move around Utah. But they’ve also introduced new legal and insurance complexities. When accidents happen, passengers face overlapping policies, uncooperative insurers, and the stress of recovering from injuries they didn’t cause.

The good news is that strong protections exist. Uber and Lyft’s $1 million liability policies provide meaningful coverage when rides go wrong. The challenge is ensuring those protections are honored—and that passengers aren’t lost in the shuffle.

At The Legal Beagle, we help Utahns injured in rideshare accidents make sense of the confusion. We know how to navigate the three coverage periods, how to hold rideshare companies accountable, and how to push back against insurers that try to dodge responsibility. If you’ve been hurt in an Uber or Lyft crash, you don’t have to figure it out alone. With the right advocate, you can secure the clarity, accountability, and compensation you deserve.