Can You Sue Uber or Lyft in California?

Short answer: Whether you recover — and from whom — turns on what the rideshare driver was doing at the instant of the crash. Once a driver has accepted a ride or has a passenger on board, Uber and Lyft must carry a $1,000,000 liability policy plus $1,000,000 in uninsured/underinsured motorist coverage. That insurance is usually the main path to recovery. Suing the company itself is harder because Proposition 22 treats drivers as independent contractors — but direct claims for the company's own negligence can still exist.

California's three rideshare insurance periods

California regulates Uber, Lyft, and other "Transportation Network Companies" (TNCs) under the Public Utilities Code (§§ 5430–5443) and California Public Utilities Commission rules. The coverage available after a crash depends on which of three periods the driver was in:

• Period 0 — App off. The driver is not working. Only the driver's personal auto insurance applies. The rideshare company provides no coverage.
• Period 1 — App on, waiting for a request. The driver is logged in but has not accepted a trip. The company must provide contingent liability coverage of at least $50,000 per person, $100,000 per accident, and $30,000 for property damage — coverage that applies if the driver's personal policy denies the claim.
• Periods 2 & 3 — En route to pick up, and during the ride. From the moment a driver accepts a ride request through completion of the trip, the company must maintain $1,000,000 in liability coverage, plus $1,000,000 in uninsured/underinsured motorist coverage.

The single most important early fact in a rideshare case is therefore the driver's exact app status at the moment of impact. That information — the trip log and timestamps — is controlled by the rideshare company and should be requested and preserved promptly.

Can you sue Uber or Lyft directly?

This is where many people are surprised. In an ordinary employer–employee crash, the employer is vicariously liable for the employee's negligence under respondeat superior. But in 2020, California voters passed Proposition 22, which classifies app-based drivers as independent contractors rather than employees. That classification gives Uber and Lyft a strong argument against ordinary vicarious liability for a driver's negligence.

In practice, this means two things:

• The mandatory insurance still protects you. Independent-contractor status does not eliminate the $1,000,000 policy the company is required to carry for Periods 2 and 3. That coverage responds to the driver's negligence and is usually the primary source of recovery for a seriously injured person.
• Direct claims against the company require the company's own fault. You may still be able to sue Uber or Lyft directly where their own conduct was negligent — for example, negligent hiring or retention of a driver with a dangerous record, negligent failure to deactivate a driver after credible complaints, or claims arising from the app's design. These are fact-specific and evolving areas of law.

Why rideshare catastrophic-injury cases are high value

• Large policy limits. A $1,000,000 liability policy plus $1,000,000 UM/UIM dwarfs the $30,000-per-person minimum carried by an ordinary California driver.
• Multiple potential sources of recovery. Depending on the facts, recovery may come from the rideshare policy, the driver's personal policy, a third party's policy, and UM/UIM coverage.
• Time-sensitive electronic evidence. Trip logs, GPS data, and in-app timestamps establish the driver's period and fault — and they are held by the company.

Frequently Asked Questions

This article is general legal information about California law, not legal advice for any specific case. Rideshare insurance rules and the law around Proposition 22 continue to develop; figures reflect requirements in effect in 2026. For advice about your situation, speak with an attorney.

Related practice areas

• Uber & Lyft Accidents
• Car Accidents
• Uninsured / Underinsured Motorist Claims
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