A rideshare trip can involve three different insurance realities before a passenger reaches a destination: the driver’s personal policy before the app is on, a lower level of transportation network company coverage while the driver is logged in and waiting, and a much higher policy once a ride is accepted.
That distinction matters because a crash does not always happen clearly after a passenger gets in the car. It can happen while a driver is waiting for a request, driving to pick someone up, running multiple apps, or using a personal vehicle that also serves as a source of income.
Personal auto insurance typically excludes business use or periods when a driver is “available for hire,” according to the National Association of Insurance Commissioners. The NAIC advises drivers to talk with their insurers before driving for companies such as Uber or Lyft and to fill gaps that may not be covered by either the rideshare company or a personal auto policy.
To examine how these protections differ across the country, Temple Injury Law, a personal injury law firm, reviewed state transportation network company insurance laws and regulator materials to identify where coverage usually starts, where it increases, and where gaps can remain for riders, drivers, pedestrians, and other motorists.
The biggest coverage shift happens before and after a ride is accepted
Most state rideshare insurance laws divide coverage into phases. The first major phase begins when a driver logs on to a rideshare app but has not accepted a ride. The second begins when the driver accepts a request and continues through pickup and the passenger’s trip.
That first phase can be the most confusing. A driver may appear to be working, but there is no passenger yet. In many states, the required liability coverage at that point is much lower than during an active trip.
California’s transportation network company law shows how the split works. Once a driver accepts a ride request, the required policy must provide $1 million in primary coverage for death, personal injury, and property damage. But when the driver is merely logged on and waiting for a request, California requires at least $50,000 for death and personal injury per person, $100,000 per incident, and $30,000 for property damage, along with at least $200,000 in excess coverage per occurrence.
Florida uses a similar structure, though its property damage figure during the waiting period is lower. When a driver is logged on but not engaged in a prearranged ride, Florida requires at least $50,000 for death and bodily injury per person, $100,000 per incident, and $25,000 for property damage, along with personal injury protection and uninsured or underinsured motorist coverage as required under state law. Once the driver is engaged in a prearranged ride, the liability requirement rises to at least $1 million.
Some states require more than the common $1 million trip policy
The $1 million active-ride policy is common but not universal. Some states require more.
New York requires higher coverage than the common waiting-period usual minimum. When a transportation network company driver is logged onto the app but not engaged in a prearranged trip, New York requires at least $75,000 for bodily injury or death to one person, $150,000 for two or more people, and $25,000 for property damage. During a prearranged trip, the required coverage rises to at least $1.25 million, along with supplementary uninsured and underinsured motorist coverage in the same amount.
Minnesota also sets an active-trip requirement above $1 million. Under its 2025 statute, the logged-on waiting period requires at least $50,000 for death or bodily injury to one person, $100,000 for two or more people, and $30,000 for property damage. During the ride-accepted and passenger-carrying phases, Minnesota requires at least $1.5 million in coverage for death, injury, or property damage, plus other coverage, such as basic economic loss benefits and uninsured or underinsured motorist coverage, where required.
Those differences can matter after severe crashes. NHTSA calculated that motor vehicle crashes cost American society $340 billion in 2019, including medical costs, lost productivity, legal and court costs, emergency services, insurance administration, congestion, property damage, and workplace losses. The agency also estimated that crashes injured 4.5 million people and damaged 23 million vehicles that year.
The common gap: the driver’s own car
Liability coverage is designed to pay for injuries or property damage caused to others. It does not necessarily repair the rideshare driver’s own vehicle.
That distinction can be costly for drivers who lease or finance a car. New York law specifically requires transportation network companies to notify drivers that they may need additional coverage, including physical damage coverage, if the vehicle is subject to a lease or loan.
The NAIC gives similar consumer guidance: drivers should ask what kind of insurance they need before driving for a ridesharing service and should understand whether their personal policy leaves gaps when they are driving for pay.
For passengers, the questions are different. The main issue is not whether the driver’s car is repaired, but which policy applies if a crash occurs and whether uninsured or underinsured motorist coverage is available. The NAIC advises passengers to know the extent of their protection in the event of an accident and notes that most ridesharing companies have liability policies to cover passenger injuries.
What riders and drivers should check before the next trip
The state-by-state rules show that rideshare insurance is not one uniform national system. However, the practical questions are the same in every state: Was the app on? Had a ride been accepted? Was a passenger in the car? Did the driver’s personal policy exclude the trip? Was uninsured or underinsured motorist coverage available? And did any policy cover damage to the driver’s own vehicle?
Those details are rarely top of mind when someone opens an app. They can become central after a crash, when the difference between being logged on, en route, or actively transporting a passenger may determine which policy responds first.
Jeff Temple focuses his practice in the area of personal injury. As a skilled personal injury attorney, he handles a broad range of cases including motor vehicle accidents, premises liability, and wrongful death. He is a graduate of the Radford University, he later attended the University of Miami School of Law and studied abroad at University College London. Upon graduating, Jeff relocated to Las Vegas and founded Temple Injury Law in 2022.
