How New Jersey Law Treats Rideshare Drivers Differently from Taxi and Limo Drivers
Posted November 25th, 2025 by Anthony Carbone, PC.
Categories: Attorney Anthony Carbone, Auto Accidents, Lyft Accident, Personal Injury.
If you’re involved in an accident with a transportation service in New Jersey, whether it’s an Uber, taxi, or limousine, the insurance coverage and legal rules that apply can be very different. Understanding these differences is important for protecting your rights and getting the compensation you deserve. At The Law Offices of Anthony Carbone P.C., we help clients navigate the complex regulations that apply to different types of transportation services.
How the Law Regulates Each Type of Driver
Rideshare Drivers
Rideshare drivers who work for companies like Uber and Lyft are classified as independent contractors, not employees. They use their personal vehicles to provide transportation services. In New Jersey, rideshare companies are regulated at the state level, creating uniform rules across all cities and towns.
Rideshare drivers must pass background checks that include criminal history and driving record reviews. They must be at least 21 years old and have a valid driver’s license. However, they are not required to undergo drug and alcohol testing like some taxi drivers.
Taxi and Limousine Drivers
Taxi and limousine drivers face stricter licensing and operational requirements. They typically operate under medallions or permits issued by local municipalities or counties. These drivers must meet commercial vehicle standards, including regular vehicle inspections and specific training requirements.
Limousine drivers must undergo fingerprinting and criminal background checks through the New Jersey Motor Vehicle Commission. Taxi services are often regulated at the local level, with requirements that can vary by city or town.
Major Differences in Insurance Coverage
The biggest difference between rideshare drivers and traditional taxi or limo drivers is how insurance coverage works.
Rideshare Insurance
For rideshare drivers, insurance coverage depends entirely on their app status at the time of the accident:
App Off: When the driver is not logged into the rideshare app, only their personal auto insurance applies. The rideshare company provides no coverage.
App On, Waiting: When the driver is logged in and waiting for a ride request, limited coverage applies. This includes at least $50,000 per person and $100,000 per accident for bodily injury, plus $25,000 for property damage.
Passenger On Board or En Route: When the driver has accepted a ride or has a passenger in the vehicle, New Jersey requires rideshare companies to provide $1.5 million in liability coverage and $1.5 million in uninsured or underinsured motorist coverage.
Taxi and Limousine Insurance
Taxi and limousine drivers maintain continuous commercial liability insurance whenever they are working. This means coverage is always in effect while the driver is on duty, whether they have a passenger or are waiting for one.
The insurance requirements for taxis vary by municipality, but they generally maintain commercial policies with higher minimums than personal auto insurance. This continuous coverage provides more consistent protection for passengers and other people on the road.
What This Means for Accident Victims
Determining Liability
With rideshare accidents, figuring out which insurance company is responsible can be complicated. You need to know the driver’s app status at the exact time of the crash.
With taxi or limousine accidents, determining insurance coverage is usually more straightforward. The commercial policy is typically in effect whenever the driver is working.
Available Insurance Limits
If a rideshare driver’s app was off at the time of the accident, you may only have access to their personal auto insurance. If the driver was actively transporting a passenger, up to $1.5 million in coverage should be available.
Taxi and limousine commercial policies remain in effect throughout the driver’s shift, providing more consistent coverage amounts.
Building Your Case
Rideshare accident cases often require collecting app data, GPS records, and trip details to prove the driver’s status. This evidence can disappear quickly if not preserved right away.
Taxi and limo accidents may involve regulatory reports or municipal oversight, which can also affect how evidence is collected.
Steps to Take After Any Transportation Accident
Call 911 immediately. Get a police report and medical attention if needed.
Collect information. Get the driver’s name, company, license plate, and insurance information. Take photos of all vehicles and damage.
Determine the service type. Find out if the vehicle was a rideshare, taxi, or limousine. For rideshare accidents, ask about the driver’s app status.
Preserve evidence. Keep copies of receipts, app screenshots, or any other proof of your ride. Get witness contact information.
Report the accident. Notify your own insurance company about the crash.
Contact a lawyer quickly. Transportation accidents involve complex insurance rules that require legal expertise.
Why You Need Experienced Legal Help
At The Law Offices of Anthony Carbone, we have over 35 years of experience handling accidents involving rideshare, taxi, and limousine services in New Jersey. We understand the different regulations and insurance requirements that apply to each type of transportation service.
We help our clients by determining who is responsible, identifying available insurance coverage, collecting critical evidence before it disappears, negotiating with multiple insurance companies, and fighting for full compensation for medical bills, lost wages, and pain and suffering.
Get Help Today
Whether your accident involved a rideshare driver, taxi, or limousine, the insurance and legal issues can be complicated. Don’t try to navigate these complex rules alone. Contact The Law Offices of Anthony Carbone P.C. for a free consultation. We’ll explain how the law applies to your specific situation and fight to get you the compensation you deserve.
