Can You Sue Uber or Lyft After an Accident? Understanding Your Legal Options

Rideshare services like Uber and Lyft have transformed the way Californians travel. With a few taps on a smartphone, you can arrange a ride almost anywhere, anytime. But when accidents happen, the situation quickly becomes complicated.

Unlike standard car crashes, Uber and Lyft accidents involve multiple insurance policies, independent contractors, and complex corporate liability rules. Passengers and other injured parties often struggle to understand who can be held legally responsible — the driver, the company, or both.

At BD&J, PC, Attorney Michael Madadi and his pre-litigation department have handled thousands of serious injury claims, including complex rideshare cases. Their experience ensures that victims not only understand their rights but also secure full compensation for medical costs, lost wages, and pain and suffering.

Are Uber and Lyft Drivers Employees or Independent Contractors?

One of the biggest legal hurdles in suing Uber or Lyft comes from how these companies classify their drivers. Instead of hiring them as employees, Uber and Lyft label their drivers as independent contractors.

This classification allows the companies to argue they are not directly liable for a driver’s negligence because, under traditional rules, employers are responsible for employees — not contractors.

However, this issue is far from settled. Courts and lawmakers in California have challenged this distinction. Under Assembly Bill 5 (AB5), many gig workers — including rideshare drivers — could legally qualify as employees, depending on how much control the company exercises over their work.

When BD&J, PC handles a rideshare case, the team carefully examines this relationship. If evidence shows Uber or Lyft controlled the driver’s hours, routes, or pay structure, the firm can argue that the company should share liability for the accident.

When You Can Sue Uber or Lyft

In most cases, Uber and Lyft provide insurance coverage rather than allowing direct lawsuits. However, there are situations where suing the company itself is possible or necessary. These include:

• Negligent hiring or retention: If Uber or Lyft failed to screen or discipline a driver with a poor safety record.
• Defective app design or technology: When rideshare software contributes to distracted driving or unsafe behavior.
• Corporate negligence: If company policies encourage dangerous practices, such as unrealistic driving schedules or bonuses that incentivize speeding.
• Independent contractor misclassification: When drivers should legally be considered employees, making the company vicariously liable.

An experienced rideshare accident attorney can evaluate whether your case meets the criteria for a lawsuit against the company itself — or whether a claim against its insurer will achieve the best outcome.

Understanding Uber and Lyft’s Insurance Coverage

California law requires Uber and Lyft to maintain large commercial insurance policies. However, coverage depends on the driver’s app status at the time of the accident.

1. App OFF

If the driver is not logged into the Uber or Lyft app, the company provides no coverage.
Only the driver’s personal auto insurance applies. Victims must pursue claims directly against the driver’s policy.

2. App ON (Waiting for a Ride Request)

Once the driver is online but hasn’t accepted a ride, limited coverage applies:

• $50,000 per person for bodily injury
• $100,000 per accident total
• $25,000 for property damage

This coverage supplements the driver’s personal policy if that coverage is insufficient.

3. Ride Accepted or Passenger in Vehicle

Once the driver accepts a ride — from pickup until drop-off — Uber and Lyft provide up to $1 million in liability coverage.
This coverage extends to:

• Passengers in the rideshare vehicle
• Other motorists, cyclists, or pedestrians injured by the driver
• Property damage resulting from the crash

This tier provides the broadest protection but still requires navigating complex insurance negotiations, especially when multiple parties share fault.

Who Can File a Rideshare Claim?

Rideshare accidents don’t just impact passengers. Several parties may be eligible for compensation, including:

• Passengers injured while in an Uber or Lyft vehicle
• Drivers of other vehicles involved in a rideshare crash
• Pedestrians or cyclists struck by an Uber or Lyft driver
• Rideshare drivers injured by negligent motorists

Each type of claim involves unique challenges. For example, Uber’s insurer might argue a driver was offline, while the driver’s insurer denies responsibility, claiming they were “on the clock.” Without legal guidance, victims can easily get caught between insurers — each trying to avoid paying.

Challenges Victims Face After a Rideshare Accident

Rideshare accidents often involve overlapping insurance companies, data records, and corporate attorneys. Victims typically face:

• Conflicting information about which insurer is responsible.
• Delays and low settlement offers from adjusters.
• Difficulty accessing app data showing whether the driver was on duty.
• Corporate denial of responsibility by Uber or Lyft.

Uber and Lyft are large corporations with vast legal resources. Their insurers may appear cooperative but are trained to minimize claims. Without an attorney, victims risk walking away with only a fraction of the compensation they deserve.

How BD&J, PC Proves Liability in Rideshare Cases

Attorney Michael Madadi and his team at BD&J, PC approach rideshare cases with precision, evidence, and strategy. Their process includes:

Verifying the driver’s app status at the exact moment of the accident.

Obtaining electronic data from Uber or Lyft, including GPS, trip history, and ride acceptance logs.

Reviewing police reports and witness statements to confirm fault.

Consulting accident reconstruction experts to show how the collision occurred.

Identifying all potential sources of insurance coverage, including underinsured motorist benefits.

By uncovering digital and physical evidence, BD&J builds airtight cases that force insurance carriers — and, when necessary, rideshare corporations — to take responsibility.

What Compensation Can Victims Recover?

Victims injured in rideshare accidents may be entitled to compensation for:

• Medical expenses: Emergency care, surgeries, rehabilitation, and future treatment.
• Lost wages: Time away from work during recovery.
• Loss of earning capacity: When injuries prevent returning to prior employment.
• Pain and suffering: For physical pain and emotional trauma.
• Property damage: Vehicle repair or replacement.
• Loss of enjoyment of life: When injuries limit independence or lifestyle.
• Wrongful death damages: For families who lose a loved one in a fatal rideshare crash.

BD&J’s pre-litigation team works with medical specialists and economists to calculate the full value of every claim — ensuring that long-term costs are not overlooked.

When Can You Sue the Rideshare Company Directly?

While Uber and Lyft’s insurance typically covers injury claims, direct lawsuits against the companies may be necessary when:

• The company’s policies or app design directly caused or contributed to the accident.
• Uber or Lyft failed to enforce safety standards or driver background checks.
• The insurer acts in bad faith — delaying or denying legitimate claims.
• The driver’s employment classification (under AB5) can be proven as misclassified.

In these cases, BD&J, PC can file a civil lawsuit directly against Uber or Lyft, seeking not only compensatory damages but potentially punitive damages if gross negligence or willful misconduct is shown.

The Importance of Acting Quickly

Uber and Lyft retain trip data and electronic logs for a limited period. Waiting too long to seek legal help can mean critical evidence is lost.
California law also limits the time to file a personal injury claim to two years from the date of the accident.

By contacting BD&J, PC immediately, victims ensure their attorney can:

• Preserve rideshare data before deletion
• File necessary insurance claims on time
• Prevent corporate adjusters from pressuring them into early settlements

Quick action is often the difference between a weak case and a winning one.

How BD&J, PC and Michael Madadi Protect Rideshare Victims

At BD&J, PC, rideshare cases are handled with the same precision and compassion that have led to over $1.5 billion recovered for clients across California. Under Michael Madadi’s leadership, the firm’s pre-litigation department has resolved thousands of serious injury claims involving Uber, Lyft, and other complex corporate defendants.

Their advocacy is grounded in three principles:

Protect clients from insurer and corporate manipulation.

Investigate every layer of liability, including company policies and data records.

Fight relentlessly for maximum compensation — no exceptions.

With BD&J’s expertise, victims don’t have to navigate the corporate maze alone. They gain a powerful ally dedicated to securing justice, accountability, and recovery.

Standing Up to Corporate Negligence

Uber and Lyft transformed transportation — but they also introduced new legal challenges for accident victims. When profit-driven policies lead to unsafe conditions, these companies must be held accountable.

If you’ve been injured in an Uber or Lyft accident in California, contact BD&J, PC today for a free consultation.
Let Attorney Michael Madadi and his team handle the complex legal battle while you focus on healing and rebuilding your life.