Rideshare services such as Uber and Lyft have become an essential part of transportation in Massachusetts, offering convenience and flexibility for riders across Boston, Lexington, Waltham, and beyond. However, when a rideshare vehicle is involved in a collision, determining who is financially responsible can be far from straightforward. At Kajko, Weisman & Colasanti, our attorneys have seen how confusion about rideshare insurance coverage can delay claims and complicate recovery for injured victims. Understanding how coverage works under Massachusetts law is the key to knowing where to turn for compensation.
Understanding Massachusetts Rideshare Law
In Massachusetts, Uber and Lyft are regulated as Transportation Network Companies (TNCs) under M.G.L. c. 159A½. Drivers are classified as independent contractors, not employees, which means Uber and Lyft are not automatically liable for every crash involving one of their drivers. However, both the driver and the rideshare company must carry certain levels of auto insurance coverage, which change depending on whether the driver was using the app and whether a passenger was in the car at the time of the accident.
When the App Is Turned Off
If a rideshare driver is not logged into the Uber or Lyft app, the driver’s personal auto insurance is the only coverage that applies. The rideshare company’s insurance is not active when the app is off. For example, if a driver ends a shift, logs out of the app, and rear-ends another car on the way home, Uber or Lyft’s coverage would not apply. The injured party would pursue compensation from the driver’s personal insurance policy.
When the App Is On, but No Passenger Has Been Accepted
When the driver is logged into the app and waiting for a ride request, Uber and Lyft provide contingent liability coverage that supplements the driver’s personal insurance. This coverage activates only if the driver’s personal insurer denies or limits payment. The contingent coverage includes:
- Up to $50,000 per person for bodily injury
- Up to $100,000 per accident for bodily injury to multiple people
- Up to $25,000 for property damage
In this “available but not yet assigned” stage, determining coverage can be challenging, as both the driver’s and the rideshare company’s insurers may dispute responsibility.
When a Ride Is Accepted or a Passenger Is On Board
Once a rideshare driver accepts a ride request or has a passenger in the vehicle, Uber and Lyft’s full commercial insurance coverage applies. This is the highest level of protection available under Massachusetts law and includes:
- $1 million in third-party liability coverage
- Uninsured/underinsured motorist coverage to protect passengers if another driver causes the crash and lacks sufficient insurance
- Comprehensive and collision coverage (if the driver carries these coverages on their personal policy)
For example, if a Lyft driver picks up a passenger in Waltham and is struck by another vehicle on the way to Logan Airport, Lyft’s $1 million commercial policy would cover the passenger’s injuries and related damages.
Massachusetts No-Fault Insurance and Rideshare Accidents
Massachusetts follows a no-fault insurance system, meaning that after an accident, injured parties typically first file a Personal Injury Protection (PIP) claim with their own insurer for immediate medical expenses and lost wages. However, when injuries exceed $2,000 in medical costs or involve serious or permanent harm, victims may pursue a claim against the at-fault driver’s insurance. In rideshare cases, this could involve the driver’s personal policy, Uber or Lyft’s policy, or both.
Common Questions After a Rideshare Collision
- Can I sue Uber or Lyft directly?
Usually, no. Claims are typically made through the rideshare company’s insurance policy, not against the company itself, since drivers are independent contractors. - What if the driver was waiting for a ride?
Contingent coverage may apply, but only after the driver’s personal insurance is used. - How do I know if the driver was using the app?
Your attorney can obtain the rideshare company’s electronic trip data to verify whether the app was active at the time of the crash.
Why You Should Work With an Experienced Attorney
Rideshare accidents often involve multiple insurers, overlapping coverage, and disputes over whether the driver was “on the app” when the collision occurred. The attorneys at Kajko, Weisman & Colasanti are experienced in navigating these complex cases. We work to identify all available insurance sources, establish liability, and pursue full compensation for medical bills, lost wages, and pain and suffering.
Protecting Massachusetts Injury Victims in Rideshare Crashes
Being injured in a rideshare accident can be overwhelming—especially when insurance companies point fingers at each other. Having a knowledgeable attorney ensures that your claim is handled efficiently and that you are not left responsible for expenses that should be covered by law.
If you were hurt in an accident involving an Uber or Lyft driver, contact Kajko, Weisman & Colasanti today. Our Massachusetts personal injury attorneys can explain how rideshare insurance coverage applies to your case and help you pursue the compensation you deserve for your injuries and financial losses.