Uber & Lyft Accident Settlements: Why You Need Financial Staying Power
4 min read read
Published Apr 2, 2025
The Million-Dollar Policy Limit
One of the unique aspects of rideshare accidents is the insurance coverage involved. Uber and Lyft carry $1 million liability insurance policies that cover passengers and active drivers. This is significantly higher than the standard $15k or $25k policies most regular drivers have.
However, accessing this policy is difficult. Rideshare insurance adjusters are aggressive. They will do everything possible to deny that the commercial policy applies to your accident, often arguing that the driver was "off the clock" to push the liability onto the driver's personal insurance instead.
The Complexity of "Periods"
To win a rideshare case, your attorney must prove which "Period" the driver was in:
• Period 1: App on, waiting for a ride (Limited coverage).
• Period 2: En route to pick up a passenger (Full coverage).
• Period 3: Passenger in the car (Full coverage).
If there is any dispute about when the ride started or ended, the case can drag on for months while lawyers subpoena digital data logs from the rideshare company. This delay often creates a cash crunch for the victim.
Why You Can't Afford to Rush
Because the potential payout is so high ($1 million+ limits), settling early is a huge mistake. If you are desperate for cash, you might accept a $50,000 offer from the driver's personal insurance, missing out on hundreds of thousands from the corporate policy.
Pre-settlement funding gives you the staying power to reject the small checks. It keeps you afloat while your attorney secures the GPS data needed to unlock the full corporate policy limit.
