Rideshare Accident Settlement in New York: Uber, Lyft, and the $1M Coverage Question

Key Takeaways

• Outside New York City, rideshare insurance is set by Vehicle and Traffic Law § 1693, and the limits turn on whether the driver was logged on without a trip or on a trip.
• On a trip (from acceptance until the last passenger gets out), the coverage is at least $1,250,000 per occurrence plus $1,250,000 of supplementary uninsured/underinsured motorist coverage for bodily injury.
• In New York City, Uber and Lyft cars are for-hire vehicles under Taxi and Limousine Commission rules, which require at least $100,000/$300,000 of bodily injury coverage, 24 hours a day.
• A claim for pain and suffering still requires a “serious injury” under Insurance Law § 5102(d), which has eight categories for actions commenced on or after May 26, 2026.
• The written no-fault notice is due within 30 days of the crash (11 NYCRR 65-1.1).

Uber and Lyft changed how people get around Long Island, and they changed car accident claims too. When a rideshare car is in a crash, the insurance available depends on what the driver was doing in the app at that moment. Whether you were a passenger in the back seat, a pedestrian in a crosswalk, or in another car, that one fact sets the coverage.

This guide explains how rideshare insurance works in New York, what drives the value of a claim, and what to do in the first days. For the coverage table and how Long Island differs from New York City, see our Uber and Lyft accident lawyer page.

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The Coverage Tiers: The Most Important Fact in a Rideshare Case

Outside New York City, article 44-B of the Vehicle and Traffic Law governs transportation network companies (TNCs) such as Uber and Lyft. Section 1693 requires insurance “while the TNC driver is logged onto the TNC’s digital network” and “while the TNC driver is engaged in a TNC prearranged trip,” at different limits for each. Article 44-B does not apply in a city of one million or more (Vehicle and Traffic Law § 1692(10)); New York City is covered below.

App off

With the app off, the driver is a private motorist and article 44-B does not apply. The driver’s personal auto policy is the coverage, at no less than the state minimum of $25,000 for injury to one person and $50,000 for injury to two or more (Vehicle and Traffic Law § 311(4)).

Logged on, waiting for a request

While the driver is logged on but has not accepted a trip, Vehicle and Traffic Law § 1693(2)(a) requires coverage of at least:

• $75,000 for bodily injury to or death of one person
• $150,000 for bodily injury to or death of two or more persons
• $25,000 for property damage

The coverage can come from the driver’s own policy, the TNC’s group policy, or a combination (§ 1693(2)(b)). It is not contingent on a denial by the driver’s personal insurer: the group policy’s coverage “shall not be dependent on the denial of a claim by the insurer that issued the insurance policy used to register the TNC vehicle, nor shall that insurer be required to first deny a claim” (§ 1693(6)). If the driver’s insurance “has lapsed or does not provide the required coverage,” the TNC’s group policy pays “beginning with the first dollar of a claim” (§ 1693(5)).

On a trip: the $1.25 million tier

A “TNC prearranged trip” begins “when a transportation network company driver accepts a passenger’s request for a trip,” continues while the driver transports the passenger, and ends “when the last requesting passenger departs from the TNC vehicle” (Vehicle and Traffic Law § 1691(6)(a)). During that time, § 1693(3)(a) requires coverage of at least $1,250,000 per occurrence for bodily injury, death and property damage, plus $1,250,000 of supplementary uninsured/underinsured motorist coverage for bodily injury.

The personal policy exclusion

A personal auto insurer may exclude “any and all coverage” while the driver “is logged on to a TNC’s digital network or while a driver provides a TNC prearranged trip,” including liability, no-fault, uninsured motorist and supplementary uninsured/underinsured motorist coverage (Vehicle and Traffic Law § 1695(1)). That is why the § 1693 coverage matters: for most crashes while the app is on, it is the coverage.

Why the precise moment matters

A crash a minute before the driver accepts a request falls in the $75,000 tier. The same crash a minute after falls in the $1,250,000 tier. The statute builds in a way to find out: within 15 days after a claim is filed, the TNC and the insurers must exchange information including “the precise times that a TNC driver logged on and off of the TNC’s digital network in the twelve hour period immediately preceding and in the twelve hour period immediately following the accident” (§ 1695(6)). Send a written preservation demand for trip data, GPS records and app logs as soon as you can.

New York City

Uber and Lyft cars in the five boroughs are for-hire vehicles licensed by the Taxi and Limousine Commission. TLC Rules § 59A-12(c)(1) requires each for-hire vehicle with fewer than eight seats to carry at least $100,000 per person of first-party benefits, “$100,000 minimum liability and $300,000 maximum liability for bodily injury and death,” and $10,000 for property. The coverage must apply “24 hours per day, 7 days per week, regardless of vehicle use or purpose” (§ 59A-12(c)(5)), so the logged-on and on-trip tiers of article 44-B do not apply there.

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What the Coverage Means for Your Settlement

The $1,250,000 trip coverage is a ceiling on what the policy pays, not a value for the case. What a claim is worth depends on the injuries, the medical proof, fault, and whether the injury meets New York’s serious injury threshold.

The Serious Injury Threshold

Insurance Law § 5104(a) provides that, between covered persons, “there shall be no right of recovery for non-economic loss, except in the case of a serious injury, or for basic economic loss.” For actions commenced on or after May 26, 2026, Insurance Law § 5102(d), as amended by Part EE of chapter 58 of the Laws of 2026, defines serious injury as one that results in “death; dismemberment; significant disfigurement; a fracture; loss of a fetus; permanent loss of use of a body organ, member, function or system; permanent consequential limitation of use of a body organ or member; or significant limitation of use of a body function or system.”

The former category for an injury that prevented substantially all daily activities for 90 of the 180 days after the accident applies only to actions commenced before May 26, 2026. Consistent treatment that starts right after the crash is how the threshold is proved; gaps in treatment are what insurers point to when they contest it.

Why the Policy Limit Matters

The same injury can lead to very different results depending on the coverage behind the driver. Against a private driver carrying the $25,000/$50,000 minimum, the policy limit often caps what can be collected. Against a rideshare driver on a trip, the $1,250,000 tier is available, and the case can be valued on the injuries rather than on what the driver happened to buy.

Multi-Victim Crashes

The trip coverage is “with respect to each such occurrence” (§ 1693(3)(a)). When several people are hurt in one crash, they all claim against the same limit.

Rideshare Claims Adjusters

The insurers behind Uber and Lyft contact injured people quickly, often before a lawyer is involved or a first medical evaluation is complete. A recorded statement given that early can hurt the claim. Talk to a lawyer before giving one.

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Uninsured and Underinsured Drivers: When Someone Else Caused the Crash

Many rideshare passengers are hurt when another driver hits the car they are riding in. In those cases:

• The at-fault driver’s liability insurance pays first.
• During a trip, the rideshare coverage must include $1,250,000 of supplementary uninsured/underinsured motorist coverage for bodily injury (Vehicle and Traffic Law § 1693(3)(a)), which responds when the at-fault driver is uninsured or carries too little.

These claims are not forced into arbitration. Section 1693(13) provides that “an insurer shall not include a mandatory arbitration clause in a policy issued pursuant to this section.” The same subdivision adds that nothing in it “supercedes the mandatory arbitration requirements contained in section five thousand one hundred five of the insurance law.”

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Can You Sue Uber or Lyft Directly?

The coverage required by § 1693 insures the driver’s liability. A passenger’s claim is ordinarily brought against the driver and, under Vehicle and Traffic Law § 388(1), the owner of the vehicle, with the TNC’s group policy responding to the extent it provides the § 1693 coverage. Whether the company itself is liable for a driver’s negligence is a separate question that depends on the facts and the company’s own conduct, and it is not answered by the insurance statute.

Whatever the theory, the deadline for a negligence lawsuit is three years from the crash (CPLR 214(5)). For more on personal injury claims, see our practice page.

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No-Fault Benefits in Rideshare Cases

No-fault, or first-party benefits, applies to rideshare crashes as it does to any car crash. It pays basic economic loss up to $50,000 per person (Insurance Law § 5102(a)), including:

• Medical expenses, whoever was at fault
• Lost earnings up to $2,000 per month for not more than three years (§ 5102(a)(2)), reduced by 20 percent (§ 5102(b)(1))
• Other reasonable and necessary expenses up to $25 per day for one year (§ 5102(a)(3))

The mandatory endorsement requires written notice to the insurer “as soon as reasonably practicable, but in no event more than 30 days after the date of the accident,” unless the injured person shows “clear and reasonable justification” for the delay (11 NYCRR 65-1.1). Because a personal insurer may exclude no-fault while the driver is logged on (Vehicle and Traffic Law § 1695(1)(b)), and the § 1693 coverage must satisfy article 51 of the Insurance Law, the notice usually goes to the insurer providing the rideshare coverage. A pedestrian struck by a rideshare car claims against the insurer of the vehicle that struck them (11 NYCRR 65-3.12(a)(1)).

To recover pain and suffering beyond no-fault, the injury must meet the serious injury threshold described above.

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What Drives the Value of a Rideshare Claim

This article does not publish settlement ranges. Figures detached from a case’s records mislead more than they help. These are the facts that move a rideshare claim’s value:

• The coverage tier: logged on, on a trip, or app off decides the policy limit, and in New York City the TLC policy applies around the clock.
• The injury and its proof: the threshold category the injury fits, imaging, surgical records and consistent treatment.
• Fault: under CPLR 1411(a), damages are reduced in proportion to the claimant’s share of fault. For actions commenced on or after May 26, 2026, CPLR 1411(b) bars recovery in a motor-vehicle action subject to article 51 when “the culpable conduct attributable to the claimant is greater than the culpable conduct of the person against whom recovery is sought or is greater than the combined culpable conduct of the persons against whom recovery is sought.”
• Other coverage: supplementary uninsured/underinsured motorist coverage on the rideshare policy or your own policy.
• Wrongful death: when a crash is fatal, the estate’s damages are “fair and just compensation for the pecuniary injuries resulting from the decedent’s death” (EPTL § 5-4.3).

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Steps to Take After a Rideshare Accident

1. Call 911 and get a police report

Tell the officer whether the driver was on a trip. A passenger in the car, or the app open on the driver’s phone, helps show the trip tier.

2. Screenshot the app

Your trip ID, the driver’s name and photo, the pickup and drop-off details and the time-stamped trip data are evidence. Take screenshots before closing anything.

3. Get medical care right away

Gaps between the crash and the first medical visit are what insurers use to argue the injuries came from something else. The written no-fault notice is due within 30 days.

4. Talk to a lawyer before talking to an adjuster

App logs, GPS data and driver records should be preserved by a written demand, and § 1695(6) requires the TNC and insurers to exchange log-on and log-off times within 15 days after a claim is filed.

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For crashes involving delivery vans and box trucks rather than rideshare cars, see our Long Island truck accident lawyer page.

Injured in a Rideshare Accident? Talk to an Attorney Now.

The coverage tier at the moment of your crash decides what the policy can pay, and proving it takes prompt action to preserve the records. Whether you were a passenger, a pedestrian, or in another car, the Law Office of Jason Tenenbaum, P.C. handles rideshare accident claims throughout Long Island and the New York metro area.

If you were injured in a rideshare crash, learn more about how we approach these cases:

• Long Island Rideshare Accident Lawyer
• Long Island Car Accident Lawyer

Contact our office for a free consultation. There is no fee unless we recover for you.

Related Legal Resources

For additional guidance on this topic, see:

• Long Island personal injury lawyer
• Serious injury threshold guide
• contact our office

If you have a case involving these issues on Long Island or in the New York City metropolitan area, the Law Office of Jason Tenenbaum, P.C. offers free consultations. Call (516) 750-0595 or contact our office online.