Understanding Insurance Coverage After a Rideshare Accident in New Jersey
Posted November 21st, 2025 by Anthony Carbone, PC.
Categories: Attorney Anthony Carbone, Auto Accidents, Lyft Accident, Personal Injury.
Getting into an accident is stressful. When that accident involves an Uber or Lyft driver, things can get even more confusing. Many people don’t realize that insurance coverage changes depending on what the rideshare driver was doing at the time of the crash. At the Law Offices of Anthony Carbone P.C., we help injured people navigate these complicated situations every day.
If you’ve been hurt in a rideshare accident in New Jersey, understanding how insurance works is the first step toward getting the compensation you deserve. Here’s what you need to know about the three different stages of rideshare driving and how each one affects your claim.
Stage 1: App Off (Driver Not Working)
When a rideshare driver’s app is turned off, they’re not working for Uber or Lyft. They’re just a regular driver on the road like anyone else. If you get hit by a rideshare driver during this time, you’ll typically file a claim against their personal car insurance, not the rideshare company’s policy.
This matters because personal insurance policies usually have lower coverage limits than commercial rideshare policies. You might be dealing with $25,000 or $50,000 in coverage instead of the much higher amounts rideshare companies provide when drivers are working.
Stage 2: App On and Waiting for a Ride Request
This is the in-between stage. The driver has logged into the Uber or Lyft app and is waiting to get matched with a passenger, but they haven’t accepted a ride yet. Think of it as being “on call.”
During this stage, rideshare companies in New Jersey provide contingent liability coverage. This means there’s some insurance protection above and beyond the driver’s personal policy, but it’s less than what’s available when a passenger is in the car. The coverage limits are higher than a typical personal policy, but getting compensation can be tricky because you might be dealing with two different insurance companies at once.
Stage 3: En Route or Passenger on Board
This is when the strongest insurance coverage kicks in. Once a rideshare driver accepts a ride request and is either driving to pick up the passenger or has the passenger in the car, the rideshare company’s full commercial insurance policy applies.
In New Jersey, this typically means coverage of $1 million or more for injuries to other people. If you’re hurt as a passenger in the rideshare vehicle, as a pedestrian, or as a driver in another car during this stage, you have access to much higher insurance limits.
However, having more insurance available doesn’t mean the claim will be easy. Rideshare companies and their insurers often fight hard to reduce what they pay out. You still need to prove who was at fault and show the extent of your injuries.
Why These Differences Matter
The stage the driver was in when the accident happened affects two important things: who pays your claim and how much money is available to cover your injuries and damages.
When the app was off, you’re limited to the driver’s personal insurance, which might not be enough to cover serious injuries. When the app was on but waiting, you face a more complex situation with multiple insurance companies involved. When the driver was actively working with a passenger, you have access to the highest coverage limits but also face insurance companies with more resources to fight your claim.
Knowing which stage applies to your accident helps your attorney determine which insurance company to pursue, what coverage limits to expect, and how to build the strongest case possible. Getting this wrong can cost you time and money.
Steps to Take After a Rideshare Accident
If you’re involved in a rideshare accident in New Jersey, take these steps to protect yourself:
Find out the driver’s status. Ask whether the driver was logged into the app and what stage they were in.
Collect information. Get the driver’s name, the rideshare company they work for, the date and time of the accident, and any ride details if you were a passenger.
Document everything. Take photos of all vehicles involved, the accident scene, any damage, and visible injuries.
See a doctor right away. Don’t wait to get medical attention. Seeing a doctor immediately creates important records that document your injuries.
Get legal help. Rideshare accident claims involve multiple insurance companies and complicated rules. An experienced attorney can identify which insurance coverage applies and fight for the compensation you deserve.
Get the Help You Need
Rideshare accidents are not like regular car accidents. The insurance coverage is more complicated, and the companies involved have teams of lawyers working to pay out as little as possible. You need someone on your side who understands New Jersey rideshare laws and knows how to hold insurance companies accountable.
At The Law Offices of Anthony Carbone, we’ve been fighting for injured people in New Jersey for over 35 years. We know how to investigate rideshare accidents, identify the correct insurance coverage, and pursue every dollar you’re entitled to receive.
If you or someone you love has been hurt in a rideshare accident, don’t face the insurance companies alone. Contact the Law Offices of Anthony Carbone P.C. today for a free consultation. We’ll review your case, answer your questions, and help you understand your legal options.
