How California Treats Rideshare Drivers Legally
Uber and Lyft drivers are usually classified as independent contractors, not employees. This limits direct lawsuits against the companies themselves. However, under California Labor Code §3351.5 and the Public Utilities Commission’s regulations, rideshare platforms must carry liability insurance for drivers while they’re using the app.
Who Pays Depends on the Driver’s App Status
- App Off: Only the driver’s personal insurance applies.
- App On, No Ride Accepted: Uber/Lyft provide limited coverage (up to $50,000 per person for injury).
- En Route or During Ride: Uber/Lyft provide $1 million in liability coverage plus UM/UIM.
Can I Sue Uber or Lyft Directly?
It’s difficult. Because drivers are not employees, Uber and Lyft usually deny direct liability. Instead, compensation typically comes from the platform’s insurance policy, not a lawsuit against the company itself. But if the app failed or the company was negligent in another way, there may be grounds to sue directly—though this is rare.
Client Example
Los Angeles: A passenger injured while in a Lyft ride initially received a $40,000 offer. We subpoenaed app logs, proved the driver was on-duty, and leveraged the $1 million policy to settle for $325,000.
5 Steps to Take After a Rideshare Accident
- Call 911 and request a police report.
- Seek immediate medical attention—even if symptoms are minor.
- Take screenshots of your Uber or Lyft app ride receipt.
- Don’t speak to the other insurer without legal advice.
- Contact a California rideshare accident lawyer.
Feeling Confused About Who to Sue?
Take a deep breath. Liability depends on many details: app activity, fault, and insurance layers. Our team knows how to navigate these gray areas—and we’re here to help.
Frequently Asked Questions
Can I sue Uber or Lyft directly?
It’s rare. Most claims go through the company’s insurance rather than a direct lawsuit.
What if the driver wasn’t using the app?
The driver’s personal auto insurance is likely responsible.
What coverage applies if the app was on?
Uber and Lyft offer $50,000 to $1 million depending on the ride stage.
What’s the deadline to file a claim?
Two years for most cases, but just six months if a government vehicle was involved.
How can I prove the driver was active on the app?
We can subpoena Uber or Lyft’s digital trip records to confirm ride status.
