One of the biggest concerns after a rideshare or Lyft accident is simple: who pays for my medical bills, lost wages, and other damages? Unlike a typical car crash, Uber and Lyft accidents involve multiple insurance layers that can make or break your case.
Here’s what you need to know.
Who Pays My Medical Bills in Lyft Accidents?
New Jersey is a no-fault state, which means your own Personal Injury Protection (PIP) coverage typically pays your initial medical bills, no matter who caused the crash.
But once your medical costs or other damages exceed PIP limits, that’s where rideshare insurance and third-party liability policies come into play.
This is often where victims get stuck—insurance companies argue over which policy applies, leaving you caught in the middle. That’s why having an Uber or Lyft accident lawyer in Union County on your side is critical.
How Do Uber and Lyft’s $1 Million Policies Work?
Both Uber and Lyft carry up to $1 million in liability coverage, but it doesn’t apply in every situation. The key factor is the driver’s status at the time of the crash:
- Driver offline / not logged in: Only the driver’s personal auto insurance applies. Uber/Lyft are not responsible.
- Driver logged in, waiting for a ride: Uber/Lyft provide contingent coverage: $50,000 per person, $100,000 per rideshare, Uber, or Lyft accident, and $25,000 for property damage.
- Driver en route to pick up a passenger or actively transporting a passenger: The full $1 million commercial liability policy applies.
Data point: According to Uber’s 2019–2020 U.S. Safety Report, over 100 fatalities occurred in Uber-related accidents during that two-year period. These numbers highlight why these insurance policies matter so much to victims.
What Is the Value of My Case?
The value of your claim depends on the severity of your injuries, your financial losses, and long-term impact.
Factors that influence settlement value:
- Extent of medical treatment (ER visits, surgeries, physical therapy)
- Time missed from work and impact on future earnings
- Whether permanent disabilities or scarring are involved
- Pain, emotional distress, and overall quality-of-life changes
Industry data: Nationally, the average car accident settlement ranges from $20,000 to $75,000, but serious rideshare, Uber, or Lyft accident cases often exceed that due to higher coverage limits. Catastrophic cases can reach six or seven figures.
What Damages Can I Recover?
As an injured victim, you may be entitled to compensation for:
- Medical expenses (hospital bills, rehab, prescriptions, surgeries)
- Lost wages and future earning capacity
- Ongoing treatment costs (physical therapy, counseling, assistive devices)
- Pain and suffering (physical pain, emotional distress, loss of enjoyment of life)
- Property damage (if your vehicle or belongings were damaged)
Our job at Portnoi & Reed is to maximize every category of recovery and ensure nothing is left on the table.
Should I Talk to the Rideshare Company’s Insurance Adjuster?
In almost every case, the answer is no.
Insurance adjusters—especially those representing Uber and Lyft—are trained to minimize payouts. They may:
- Ask misleading questions to downplay your injuries
- Push you to accept a quick, low settlement
- Use anything you say against you later in negotiations
Having a lawyer present means you don’t have to worry about being tricked into hurting your own case. At Portnoi & Reed, we handle all insurance communications on your behalf so you can focus on healing.
Take the Next Step Toward Compensation
If you were injured in an Uber or Lyft accident in Union County, NJ, don’t let complex insurance rules or aggressive adjusters stand in your way.
Call The Law Office of Portnoi & Reed P.C. at (908) 228-8800 for a free consultation. We’ll explain your rights, review your case, and fight for the full compensation you deserve.
