A crash involving an Uber or Lyft is not an ordinary car accident. The insurance that applies, and how much coverage is available, depends entirely on what the rideshare driver was doing on the app at the precise moment of the collision. That single fact can mean the difference between a $25,000 minimum policy and a $1 million commercial policy. If you were hurt in a rideshare crash in Phoenix, knowing which phase applies is the first thing that matters.
The three phases of rideshare coverage
Arizona regulates transportation network companies under ARS 28-9551 and related statutes. Coverage works in three distinct phases:
Phase 0 — App off. The driver is using the car personally and is not logged into Uber or Lyft. Only the driver’s personal auto policy applies, which in Arizona may be as low as the state minimum of $25,000 per person under ARS 28-4009.
Phase 1 — App on, waiting for a ride. The driver is logged in but has not accepted a request. Uber and Lyft provide contingent liability coverage of roughly $50,000 per person and $100,000 per accident, applying when the driver’s personal policy does not.
Phase 2 — Ride accepted or passenger aboard. The driver has accepted a trip, is en route to pick up, or has a passenger in the car. This is where the full $1 million commercial liability policy applies, and it applies as primary coverage.
Why the phase is the whole case
Insurers for Uber and Lyft have strong financial incentive to argue the driver was in a lower-coverage phase. The difference between Phase 1 and Phase 2 is hundreds of thousands of dollars in available coverage. They will not volunteer the driver’s exact status. Establishing it requires the app’s trip logs, GPS data, and dispatch records, which are obtained through legal process.
Who can recover, and how much
If you were a passenger in the Uber or Lyft, you are in the strongest position. The $1 million Phase 2 coverage applies, and it does not matter whether your driver or another driver caused the crash.
If you were in another vehicle struck by a rideshare driver, your access to coverage depends on the driver’s phase. If they had a passenger or accepted ride, the $1 million layer is in play.
If you were a pedestrian or cyclist hit by a rideshare driver, the same phase analysis decides which policy responds.
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Former insurance-defense attorney who now fights for the injured. $15M+ recovered. No fee unless we win.
What to do after a Phoenix rideshare crash
Screenshot the rideshare app if you were a passenger, including the trip details and driver information. Get the police report, which documents the rideshare involvement. Decline to give recorded statements to any insurer until you have spoken with an attorney. And do not accept an early settlement offer for a serious injury, because the first number is rarely the real number.
