When Your Rideshare Driver Is Using a Rental Car: Extra Insurance Complications in New Jersey
Posted November 7th, 2025 by Anthony Carbone, PC.
Categories: Attorney Anthony Carbone, Auto Accidents, Lyft Accident, Personal Injury.
Most people don’t think twice about whether their Uber or Lyft driver is using their own car or a rental. But if you’re involved in an accident, whether the driver was using a rental vehicle can make a huge difference in how your claim is handled. At The Law Offices of Anthony Carbone P.C., we help clients navigate these complicated cases and fight for the full compensation they deserve.
Why Rental Cars Make Rideshare Accidents More Complicated
When a rideshare driver uses their own personal vehicle, the insurance situation is relatively straightforward. But when the rideshare driver is using a rental car, everything gets more complicated.
Rental agreement restrictions. Most rental car companies prohibit using their vehicles for commercial purposes like rideshare driving unless the renter purchases additional coverage. If the driver violated this rule, the rental company may deny coverage.
Multiple insurance policies. Instead of dealing with two insurance companies, you might be dealing with four or more: the rideshare company’s insurance, the rental car company’s insurance, the driver’s personal insurance, and your own insurance.
Coverage disputes. Each insurance company will try to argue that another company should pay. This finger-pointing can delay your claim.
Questions about authorization. If the driver wasn’t authorized to use the rental car for rideshare work, this creates legal complications about who is responsible.
How Insurance Coverage Works
Rideshare Company Insurance
Uber and Lyft still provide commercial liability insurance even when their drivers use rental cars. In New Jersey, this means up to $1.5 million in coverage when the driver has accepted a ride or has a passenger in the vehicle. However, the rideshare company may argue about coverage if the driver violated the rental agreement.
Rental Car Company Insurance
Rental car companies typically offer several types of coverage:
Collision Damage Waiver. This covers damage to the rental car itself, but it usually excludes commercial use like rideshare driving.
Liability insurance. Some rental companies offer liability coverage, but this typically excludes commercial use.
Supplemental coverage. Some rental companies now offer special rideshare coverage for an extra fee, but not all drivers purchase it.
The problem is that standard rental car insurance almost always excludes commercial use. If the driver wasn’t supposed to be using the car for Uber or Lyft, the rental company will likely refuse to cover the accident.
The Driver’s Personal Insurance
Most personal auto insurance policies don’t cover vehicles the policyholder doesn’t own. Even if the driver has good personal insurance, it probably won’t apply to a rental car they’re using for rideshare work.
Your Own Insurance
Your Personal Injury Protection insurance can cover your medical bills regardless of who caused the accident. If other insurance companies deny coverage, your own uninsured or underinsured motorist coverage might help.
Common Problems in These Cases
Rental companies denying coverage. The rental company discovers the driver was using the car for rideshare work and refuses to pay.
Delayed claim processing. With multiple insurance companies involved, each one takes time to investigate.
Reduced settlement offers. Insurance companies use the complexity to offer less money than your claim is worth.
Difficulty proving driver status. You need to prove the driver was actively working when the accident happened.
What to Do After the Accident
Get medical attention immediately. Your health comes first, and prompt treatment creates important medical records.
Call the police. Make sure a police report is filed documenting the accident.
Ask about the vehicle. Find out if the car was a rental and from which company.
Document everything. Take photos of all vehicles, the accident scene, and your injuries.
Save your rideshare app data. Screenshot your trip details to prove you were a passenger.
Don’t give statements alone. Be polite to insurance adjusters but don’t give recorded statements before consulting an attorney.
Contact an experienced attorney immediately. These cases require legal expertise to sort through multiple insurance policies.
Why You Need Experienced Legal Help
Rental car rideshare accidents are among the most complicated personal injury cases. Insurance companies will use every trick they can to avoid paying. They’ll point fingers at each other, claim coverage doesn’t apply, or argue that you were partially at fault.
At The Law Offices of Anthony Carbone, we have over 35 years of experience handling complex accident cases in New Jersey. We know how to deal with multiple insurance companies, rental car policies, and rideshare regulations. We help by investigating exactly what happened, determining which insurance policies apply, coordinating claims among multiple insurers, fighting back when insurance companies deny coverage, and pursuing every dollar of compensation for medical bills, lost wages, pain and suffering, and future expenses.
Get the Compensation You Deserve
Don’t let insurance companies use the complexity of rental car rideshare accidents to reduce what you receive. These cases require experienced legal help to navigate successfully.
Contact The Law Offices of Anthony Carbone P.C. today for a free consultation. We’ll review your case, explain which insurance policies should apply, and fight to get you maximum compensation. Call us now to protect your rights.
