TL;DR:
Uber and Lyft insurance periods decide what coverage you get if you are hurt. The answer depends on what the driver was doing in the app when the crash happened. California splits every rideshare trip into three parts, and the rules change at each step. Starting January 1, 2026, a new law (Senate Bill 371) also cuts the uninsured motorist coverage for passengers. It drops from $1 million down to $60,000 per person. Figuring out which period covered your accident is the first thing you need to do if you want to file a claim.
If you get hurt in an Uber or Lyft, you probably think their big insurance pays for everything. Sometimes it does. Sometimes it doesn’t. It all comes down to which of the three Uber and Lyft insurance periods was active when the crash happened. Most people have never even heard of these periods until they get hurt and try to get help.
California law, through the Public Utilities Code Section 5433 and CPUC regulations, sets specific TNC insurance coverage requirements in California for each period. Here’s what each one actually means for your claim.
1. Period 0: The App Is Off
There’s a hidden zone that comes before the official Uber and Lyft insurance periods. People call it Period 0. It’s not on the list, but it’s where a lot of claims get denied right away.
If the driver’s app is off, they’re just driving as themselves. They might be going to the store or heading home. Uber and Lyft do not cover anything here. Only the driver’s personal car insurance matters here.
Here’s where things get complicated. Most regular car insurance will not pay if the company thinks the driver was working. Even if the driver was just between trips or using another app, the insurance company might say, “You were working,” and refuse to pay. This is how a lot of people lose out on money fast. That’s why you need to know exactly when the driver’s app was on or off. It’s the first thing you should check in any rideshare accident insurance claim.
2. Period 1: App On, No Ride Accepted
Period 1 starts as soon as your driver turns on the Uber or Lyft app and waits for a ride request. It ends when they tap to pick up a passenger. Things can get confusing here.
While the driver is waiting for a ride, their own car insurance is supposed to cover accidents first. But there’s a catch. Most car insurance companies don’t want to pay if the driver is working for Uber or Lyft. When that happens, Uber or Lyft has a backup plan called contingent coverage. In California, this is what Uber insurance Period 1 gives you:
- $50,000 per person for bodily injury
- $100,000 per accident for bodily injury
- $30,000 for property damage
That’s it. This money runs out fast if people are badly hurt. There isn’t much left for big hospital bills. The driver’s own car is not covered for damage unless they bought special extra insurance.
At the Law Offices of John C. Ye, we always check if the driver’s app was on and if they were waiting for a ride. Getting this detail right can mean the difference between a $100,000 claim and a $1 million claim. One small step can change everything.
3. Periods 2 and 3: Ride Accepted Through Trip Completion
Now we get to the part where most people feel safe. This is when the big insurance finally kicks in.
Period 2 starts as soon as the driver says yes to a ride. It ends when you get into the car. Period 3 is your whole trip, from the second you sit down until you get out at your stop. In California, both periods give you access to Uber and Lyft’s $1 million commercial liability policy if the driver causes a crash.
If you’re a passenger, your protection begins the second you climb in. If your driver gets into an accident, you can get up to $1 million for your injuries. This is the coverage that makes people breathe easy.
| Period | Ride Status | Who Pays First | TNC Liability Coverage | TNC Uninsured/Underinsured Coverage (from 2026) |
| Period 0 | App off | Driver’s personal policy only | None from TNC | None from TNC |
| Period 1 | App on, no ride accepted | Driver’s personal policy (often excludes rideshare work) | K per person / 0K per accident / K property (contingent) | Limited |
| Period 2 | Ride accepted, en route to pickup | Uber or Lyft policy | million | K per person / 0K per accident |
| Period 3 | Passenger in vehicle | Uber or Lyft policy | million | K per person / 0K per accident |
4. What SB 371 Changed and Why It Matters for Passengers
SB 371 took effect on January 1, 2026. It brings the biggest change to CPUC rideshare insurance requirements in a long time. If your driver causes a crash in Period 2 or 3, you still get up to $1 million. But the rules for accidents with uninsured or underinsured drivers changed a lot.
Before this law, if someone without insurance hit your Uber or Lyft, the company’s policy could pay you up to $1 million. After SB 371, that drops way down. You can only get $60,000 per person or $300,000 per accident. This is a huge cut. It’s about 94% less for each passenger.
This change matters a lot for passengers. In California, many drivers have no insurance. Imagine someone with no insurance runs a red light and crashes into your Lyft. If your hospital bills go over $60,000, you have to pay the rest yourself unless you have another way to get help.
Critics, including the Consumer Attorneys of California, spoke out against this law. They said it puts passengers in a tough spot. Still, the law passed. Now, if you are filing a rideshare accident insurance claim, you need to know about this limit. It could change what you get back after a crash.
5. Why Does the Period Matter So Much When You File a Claim?
Insurance companies argue about which period was active much more than most people expect. If the driver says their app was off when the crash happened, the claim moves to the driver’s own insurance. Most of the time, that insurance will look for reasons not to pay, especially if they think the driver was working. If your crash gets put in Period 1 instead of Period 2, the most you can get drops from $1 million down to $100,000. That’s a big difference.
Who decides what really happened? The answer is in the company’s own records. Things like trip logs and GPS data live inside Uber or Lyft’s system. You can’t just ask for them. A lawyer usually has to send a legal notice to make sure these records are saved right away. It doesn’t matter what the driver remembers. What matters is what the app says. If you choose to work with us, our personal injury attorneys send out these preservation notices right away to ensure important evidence for your case isn’t lost.
Frequently Asked Questions
What are the three Uber and Lyft insurance periods in California?
There are three main periods. Period 1 starts when the driver turns on the app and waits for a ride. Period 2 is after a ride is accepted, but before you get in the car. Period 3 is the whole ride, from when you hop in until you get out. Each period has its own insurance rules.
What coverage applies if I’m a passenger in an Uber accident?
Once you get in the car, you’re in Period 3. If your driver causes a crash, Uber or Lyft has up to $1 million to help you. But if another driver with no insurance hits you, then SB 371 says you can only get up to $60,000.
What did SB 371 change about rideshare insurance in California?
Starting in 2026, SB 371 cuts the payout if an uninsured driver hits you. It used to be $1 million for each person hurt. Now it’s only $60,000 for each person and $300,000 total per crash. If your own driver causes the crash, the $1 million coverage did not change.
What happens if the driver says the app was off during my accident?
It doesn’t matter what the driver says. What counts is the app’s own data and GPS records. Uber or Lyft keeps this info. A lawyer can send a notice right away to make sure these records don’t get deleted.
Is Period 1 coverage enough to cover serious injuries?
Usually not. $50,000 can disappear after just one trip to the ER. This is why it’s so important to know which period was active when the crash happened.
Does SB 371 affect claims where the Uber driver caused the crash?
No, it doesn’t. If your own driver crashed, the $1 million coverage is still there. SB 371 only changed things if another driver with no insurance caused the accident.
Which Period Applied to Your Accident? The Answer Changes Everything.
It’s easy to feel lost after a rideshare accident. Which period was active at the time of the accident decides how much help you get. If you’re not sure where to start, you’re not alone. Many people have questions about what comes next.
That’s where we come in. If you or someone close to you was hurt in an Uber or Lyft crash, we can help you figure out which insurance period applies. We’ll look at your case and explain exactly what your claim could be worth.
Key Takeaways
- California splits every Uber or Lyft trip into three parts. Each part has its own insurance rules. The part you’re in when the crash happens decides what coverage you get.
- If you’re in Period 1, the coverage is much less. The most you can get is $50,000 for each person hurt and $100,000 for everyone in the accident. But if you’re in Period 2 or 3, you can get up to $1 million.
- Starting January 1, 2026, SB 371 makes a big cut. If an uninsured driver hits your Uber or Lyft in Period 2 or 3, the most you can get is $60,000 for each person. It used to be $1 million.
- Drivers and insurance companies argue all the time about which period was active. It doesn’t matter what the driver says. What counts is the app’s own records and GPS data.
- Getting the period right changes everything. If you’re in Period 2 instead of Period 1, you could get $1 million instead of $100,000. That’s why the first step in any rideshare injury claim is to figure out exactly which period was active.
