As Uber and Lyft continue to grow in popularity across New Jersey, so do the legal questions that arise when one of these vehicles is involved in an accident. Whether you're a passenger, another driver, or even a pedestrian injured in a crash involving a rideshare vehicle, one of the most pressing questions is: who is responsible for paying for the damages?

Determining liability in a rideshare accident isn’t always straightforward. The presence of large companies like Uber and Lyft, combined with their complex insurance policies, can make it more difficult to figure out who should be held accountable. Unlike traditional car accidents, rideshare cases involve multiple parties and layers of coverage, which is why it's so important to understand how New Jersey law approaches these situations.

How Liability Works in a Rideshare Accident

In most car accidents, liability falls on the party who caused the crash. But with Uber or Lyft, there are additional factors to consider—most importantly, whether the driver was working at the time of the accident. This status determines which insurance policy applies and who may be held legally and financially responsible.

Rideshare accidents typically fall into one of three categories based on the driver's status:

• The driver is not logged into the app: If the Uber or Lyft driver is not actively using the app at the time of the crash, then they are considered off-duty. In this case, the accident is treated like any other private vehicle collision. Only the driver’s personal insurance policy would apply, and Uber or Lyft would not be involved.
• The driver is logged in but hasn’t accepted a ride: If the driver is available for rides but has not accepted one, Uber or Lyft may provide limited liability coverage. This typically includes up to $50,000 per person for bodily injury, $100,000 per accident, and $25,000 for property damage—but only if the driver’s own insurance doesn’t cover the full amount.
• The driver is en route to pick up a passenger or has a passenger in the car: This is when Uber and Lyft’s full commercial insurance policies kick in. Both companies provide up to $1 million in liability coverage, which can apply to injured passengers, other drivers, pedestrians, and cyclists involved in the crash.

This three-tier system makes it critical to identify exactly what the rideshare driver was doing at the time of the collision. That information will determine what coverage is available and from whom you can seek compensation.

Who Can Be Held Liable in a Rideshare Crash?

There are several potential parties who may be held liable in a New Jersey rideshare accident, depending on the circumstances of the crash:

• The rideshare driver: If the driver’s negligence—such as speeding, distracted driving, or running a red light—caused the crash, they may be held responsible. Whether their personal insurance or Uber/Lyft’s insurance applies depends on their status in the app.
• Another driver: If a third-party driver was responsible for the collision, then that driver’s insurance would likely be the primary source of compensation for any injured parties.
• Uber or Lyft (indirectly): While Uber and Lyft typically avoid direct liability by classifying their drivers as independent contractors, their commercial insurance policies can still cover injuries and property damage, as long as the driver was working at the time of the crash.
• Other third parties: In some cases, liability may extend to vehicle manufacturers (for defective parts), municipalities (for poor road maintenance), or employers (if a driver was working for a business at the time).

Liability is often contested in rideshare accidents, and multiple parties may share fault. For example, if both a rideshare driver and another driver contributed to the accident, New Jersey’s comparative negligence laws allow for partial responsibility to be assigned to each party. This can affect how much compensation you're eligible to receive.

What Should You Do After a Rideshare Accident?

If you're involved in an accident with an Uber or Lyft—whether as a passenger, driver, or pedestrian—taking the right steps can help protect your health and your legal rights. Here’s what you should do:

• Call 911 and report the accident
• Seek medical attention immediately, even if you feel okay
• Document the scene—take photos of all vehicles, visible injuries, and the surrounding area
• Get contact and insurance information from all involved parties
• Note whether the rideshare driver was actively on a trip or waiting for a ride
• Request a copy of the police report
• Contact an experienced attorney before speaking to any insurance adjusters

Rideshare companies are known for pushing liability onto their drivers, and insurance providers may try to minimize or deny your claim. Working with a law firm experienced in Uber and Lyft accident cases can help you pursue full and fair compensation.

Call Lee Law Firm if You’ve Been Injured in a New Jersey Rideshare Accident

If you’re injured in a crash involving a rideshare vehicle, our Uber and Lyft accident attorneys are ready to stand up for your rights. We’ll help you determine who is liable, collect the necessary evidence, and work to recover damages for your medical bills, lost wages, and pain and suffering.

Don't try to deal with the stress of a complex insurance claim on your own. Contact us today to speak with a personal injury attorney who understands how rideshare accident claims work in New Jersey and will fight for the compensation you deserve.