App On / App Off, Driver Injury Claims & Multi-Layer Insurance Explained

By Rulsky Law Group — Jerry Gets Justice

Rideshare insurance is confusing on purpose. Uber and Lyft designed their systems to protect themselves — not drivers, not passengers, and not innocent Californians hurt by negligent rideshare drivers.

This guide explains everything you need to know in plain English, whether you were:

  • A passenger
  • A rideshare driver
  • Another motorist
  • A pedestrian or cyclist
  • Hit by a rideshare vehicle
  • Unsure which insurance company pays

Let’s break down exactly how rideshare insurance works — and how Rulsky Law Group helps clients unlock the full insurance coverage available, even in complex, multi-layered claims.

 

 

🟦 1. Uber/Lyft “App On / App Off” Coverage Explained

Uber and Lyft operate under special California insurance rules called TNC (Transportation Network Company) coverage periods.

There are three periods, and each one controls which insurance applies — and how much.

🚫 Period 0 — “App Off” (Driver Not Working)

App status:

  • Driver is NOT logged into Uber or Lyft
  • Driver is using the car for personal purposes

Insurance Coverage:
 ➡ ONLY the driver’s personal auto insurance applies.
 Uber/Lyft provide zero coverage during this period.

Common example:
 An off-duty Uber driver runs a red light and hits you. It’s treated like a normal auto accident.

🟡 Period 1 — “App On, Waiting for a Ride”

App status:

  • Driver is logged in
  • Searching for passengers
  • No ride accepted yet

This is the most misunderstood period.

Insurance Coverage:
 Uber/Lyft provide limited coverage:

  • $50,000 per person
  • $100,000 per accident
  • $30,000 property damage

➡ These are LOW limits compared to the later periods.
➡ The driver’s personal insurance may also apply if they purchased TNC endorsement coverage — most do not.

Example:
 A logged-in Lyft driver sideswipes you while waiting for a ping.

🟢 Period 2 — “Ride Accepted, En Route to Pickup”

Once a driver accepts a trip, Uber/Lyft activate their full commercial insurance policy.

Coverage jumps dramatically:

  • $1,000,000 liability coverage

     

  • $1,000,000 uninsured/underinsured motorist (UM/UIM)

     

  • Contingent collision & comprehensive (with deductible)

Example:
 A driver en route to pick up a passenger rear-ends another car. The $1M commercial policy applies.

🟢 Period 3 — “Passenger in the Car”

This is the highest protection period.

Coverage Provided:

  • $1,000,000 liability

     

  • $1,000,000 UM/UIM

     

  • Medical & physical damage (driver coverage varies)
  • Third-party liability for pedestrians/cyclists

Example:
 An Uber passenger suffers a TBI when the Uber driver is hit by a speeding truck. The $1M+ policy applies.

 

 

🟦 2. What If the Rideshare Driver Is the One Injured?

Most rideshare drivers think Uber/Lyft “cover them,” but in reality:

👉 They’re independent contractors,
👉 NOT employees, and
👉 Most of their medical needs are NOT covered.

Here’s what applies depending on the situation:

If Another Driver Is at Fault

The driver can pursue:

  • The at-fault driver’s liability insurance
  • Uber/Lyft’s $1,000,000 UM/UIM if the at-fault driver is underinsured or uninsured
  • A personal injury claim for:
    • Medical bills
    • Lost wages
    • Pain & suffering

We handle these cases daily.

If the Uber/Lyft Passenger Causes Harm

Rare, but possible.
We pursue liability through:

  • The rideshare company
  • Uber/Lyft corporate general liability
  • Homeowners/renters (depending on situation)

If a Defective Car Component Caused the Crash

Drivers may have claims against:

  • Vehicle manufacturers
  • Tire companies
  • Brake manufacturers
  • Repair shops
  • Vehicle maintenance companies (for fleets)

If the Rideshare Driver Is at Fault

This is where things get tricky.

Uber/Lyft do not provide medical coverage for their drivers (except limited protection under specific optional programs).

A driver injured due to their own mistake has only:

  • Their personal medical insurance
  • Med-pay coverage (if they purchased it)
  • The rideshare company’s optional driver injury protection (rarely purchased)

This is why many injured drivers turn to us — because they don’t know where compensation can actually come from.

 

 

🟦 3. Multi-Insurance-Layer Claims Explained (How We Stack Policies)

Rideshare accidents often involve 3–6 different policies, and insurance companies love to point fingers.

Rulsky Law Group investigates every layer:

Layer 1 — At-Fault Driver’s Insurance

Every claim starts here.
But often the limits are:

  • $15k
  • $25k
  • $50k

…far too small for real injuries.

Layer 2 — Uber/Lyft Liability Coverage ($1 Million)

This applies when:

  • Passenger is in the vehicle
  • Driver is en route
  • Driver has accepted a trip

This is where we unlock the first major policy.

Layer 3 — Uber/Lyft UM/UIM ($1 Million)

If the at-fault driver is uninsured or underinsured, this coverage kicks in automatically.

Most people don’t understand that passengers qualify for this even when their Uber/Lyft driver is NOT at fault.

Layer 4 — Personal Auto Policies (Driver or Injured Victim)

Sometimes:

  • A passenger has UM/UIM
  • A driver has med-pay
  • A cyclist has their own auto policy
  • A pedestrian is covered under a household family member’s policy

Most law firms overlook these — we don’t.

Layer 5 — Personal Umbrella Policies

High-income Californians often carry:

  • $1M
  • $2M
  • $5M+ umbrella policies

We routinely discover umbrella coverage other firms miss.

Layer 6 — Corporate or Commercial Policies

If a rideshare driver was also:

  • Delivering for DoorDash
  • Working for Amazon Flex
  • Making Instacart deliveries

There may be entirely separate commercial policies available.

🟣 Why Multi-Layer Claims Matter

A typical firm stops at the first policy they find.

We don’t.
We dig until every dollar is uncovered.

Our investigations have uncovered:

  • Hidden umbrella policies
  • Employer liability
  • TNC coverage misclassified as “personal”
  • Corporate fleet insurance
  • Dual-service coverage (Uber + DoorDash)

This can turn a:

💸 $25,000 case → into a $1,000,000+ recovery.

🟣 How Rulsky Law Group Handles Rideshare Insurance Cases

We:

✓ Subpoena app data
✓ Obtain GPS logs, timestamps & acceptance data
✓ Demand Uber/Lyft’s internal safety records
✓ Force production through discovery and sanctions
✓ Identify all applicable coverage periods
✓ Stack policies in the correct order
✓ Build high-value medical and economic damages proofs

No lowball offers.
No shortcuts.
We fight until the maximum recovery is reached.

 

 

📞 Injured in a Rideshare Accident? Call Rulsky Law Group Today.

📲 Call 877-77-JERRY
 💬 Free same-day consultation
 🌎 Hablamos Español
📝 No fees unless we win.

We know Uber, Lyft, and Waymo’s playbook — and we know how to beat it.