What Happens When an Uninsured or Underinsured Driver Hits Your Uber or Lyft in New Jersey
Posted November 14th, 2025 by Anthony Carbone, PC.
Categories: Attorney Anthony Carbone, Auto Accidents, Lyft Accident, Personal Injury.
Being hit by a driver who doesn’t have insurance or doesn’t have enough insurance is frustrating and frightening. When you’re riding in an Uber or Lyft and this happens, the situation becomes even more complicated. Fortunately, New Jersey law requires rideshare companies to carry special insurance that can protect you. At The Law Offices of Anthony Carbone P.C., we help rideshare passengers understand their rights and get the compensation they deserve.
The Problem with Uninsured and Underinsured Drivers
Uninsured and underinsured motorists are a serious concern on New Jersey roads. An uninsured driver has no auto insurance at all, while an underinsured driver has coverage that’s too low to fully pay for the injuries and damages they cause.
When you’re injured in a regular car accident, dealing with an uninsured or underinsured driver can leave you without enough compensation. However, when you’re a rideshare passenger, you have an important safety net.
How Rideshare Insurance Protects You
New Jersey law requires Uber and Lyft to carry substantial uninsured and underinsured motorist coverage to protect passengers when another driver is at fault. The amount of coverage depends on the rideshare driver’s app status.
Driver Not Logged Into the App
If the rideshare driver wasn’t logged into the app, the rideshare company’s insurance does not apply. You would need to rely on the at-fault driver’s insurance or your own uninsured or underinsured motorist coverage.
Driver Logged In and Waiting
When the driver is logged into the app but waiting for a ride request, limited coverage applies. The rideshare company provides contingent liability insurance with lower limits during this period.
Driver with Passenger On Board or En Route
Once a driver accepts a ride request or has a passenger in the vehicle, New Jersey law requires Uber and Lyft to provide:
- $1.5 million in liability coverage
- $1.5 million in uninsured motorist coverage
- $1.5 million in underinsured motorist coverage
This means if another driver hits your rideshare and they don’t have insurance or don’t have enough insurance, the rideshare company’s policy steps in to cover your injuries up to $1.5 million.
Why This Matters for Passengers
The uninsured and underinsured motorist coverage that rideshare companies must carry is a huge benefit:
Higher limits than personal insurance. Most personal auto insurance only provides $15,000 to $100,000 in uninsured or underinsured motorist coverage. The rideshare company’s $1.5 million coverage is far more substantial.
Protection when you need it most. Serious injuries can result in hundreds of thousands of dollars in medical bills and lost wages. Having access to higher coverage limits ensures proper compensation.
No verbal threshold defense. Unlike typical New Jersey car accidents where you may need to prove a serious injury to sue for pain and suffering, rideshare drivers cannot use the verbal threshold defense. This gives you broader rights to compensation.
Steps to Take After the Accident
If you’re in a rideshare when an uninsured or underinsured driver hits you, take these critical steps:
Get medical attention immediately. Your health comes first. Seeing a doctor also creates important medical records.
Report the crash to police. A police report creates an official record and may note if the other driver lacked insurance.
Notify the rideshare company. Report the accident through the app and provide details about what happened.
Document everything. Take photos of all vehicles, the scene, visible injuries, and damage. Get witness contact information.
Preserve ride information. Save your app data showing the trip was active, including timestamps and driver information.
Contact an attorney immediately. These claims are complex and require legal expertise.
The Role of Your Own Insurance
Even with rideshare company coverage available, your personal auto insurance may also provide benefits. If you carry your own uninsured or underinsured motorist coverage, it might supplement the rideshare company’s insurance in some situations.
An experienced attorney can coordinate between your personal insurance and the rideshare company’s policy to maximize your compensation.
Why You Need Legal Help
Dealing with uninsured or underinsured motorist claims is complicated, especially when rideshare companies are involved. Insurance companies may dispute coverage or try to minimize what they pay.
At The Law Offices of Anthony Carbone, we have over 35 years of experience handling rideshare accident cases in New Jersey. We investigate the accident to determine the driver’s app status, deal with insurance companies to access the full $1.5 million in coverage, coordinate multiple insurance policies to maximize compensation, pursue payment for all medical bills and lost wages, and handle denials and disputes aggressively.
Don’t Wait to Get Help
Rideshare accidents involving uninsured or underinsured drivers require prompt action. Evidence disappears, memories fade, and insurance companies begin building their defenses immediately. The sooner you get legal help, the better your chances of full recovery.
Contact The Law Offices of Anthony Carbone P.C. today for a free consultation. We’ll review your case, explain what insurance coverage is available, and fight to get you every dollar you deserve. Don’t let an uninsured or underinsured driver’s mistake leave you without compensation. Call us now to protect your rights.
