Phoenix is one of the most rideshare-dependent cities in the country. With extreme summer heat, a sprawling metro area, and Sky Harbor Airport, which handles tens of millions of passengers a year, Uber and Lyft aren’t just convenient here — for many residents and visitors, they’re essential. That also means more rideshare miles driven, more rideshare vehicles on the road, and more rideshare accidents, making it necessary to work with a rideshare accident lawyer in Phoenix.
When one of those accidents involves you, the question of who pays — and how much — is rarely straightforward. Arizona’s rideshare insurance law creates a tiered coverage structure that shifts depending on exactly what the driver was doing at the moment of the crash. Get the phase wrong, and you may be pursuing the wrong insurer entirely. The Phoenix personal injury attorneys here at Lerner and Rowe put this guide together to help you understand how the system works and what to do next.
Rideshare Accident Lawyer in Phoenix Key Takeaways
Arizona law requires rideshare companies to provide different levels of insurance coverage depending on whether the driver is offline, waiting for a ride request, or actively transporting a passenger. The coverage available to you depends entirely on which phase the driver was in at the time of the crash. An experienced rideshare accident lawyer in Phoenix can investigate that question immediately and pursue the right insurer from the start.
Phoenix Car Accident Rideshare Insurance Model Under ARS 28-4009
You’re likely asking yourself who pays after an Uber crash in Arizona. The Arizona law covering Transportation Network Companies, namely ARS 28-4009, defines a three-stage insurance model applying to all rideshare trips, beginning when the app starts running until the completion of service to passengers. Knowing what stage your accident fits into is the primary consideration for any accident involving an Uber or Lyft service in Phoenix, and will help you with your eventual rideshare accident settlement in Arizona.
Stage 0: The App Is Turned Off
When a rideshare driver does not have the app running, they drive as a normal private operator who owns and operates their car. There is no insurance requirement by either Uber or Lyft. Only the individual’s personal auto insurance policy applies to the accident in the same manner as in a traditional car accident case.
Here lies the difficulty, because many personal auto insurance policies have clauses that exclude from coverage an insured car being driven commercially. In such cases, even though the app may be off, if the driver had used it previously or is in dispute about being on duty, there can be a very serious coverage issue.
Period 1: App On, Awaits Ride Request
This is where legal exposure gets dicey for drivers. They’re logged on to the app and awaiting an assignment but haven’t yet taken one. They may be parked near a “hot” pick-up location, roaming a neighborhood, or sitting in a parking lot waiting to accept an assignment. To the naked eye, they appear no different from any other driver.
According to Arizona rideshare insurance ARS 28-4009, during Period 1, the ridesharing companies must carry contingent liability insurance of at least:
- $50,000 per person for bodily injury
- $100,000 per accident for bodily injury
- $25,000 for property damage
The operative word here is contingent. Contingent insurance kicks in only if the loss is not covered by the driver’s own personal policy. As stated earlier, the trend among personal carriers is to exclude such insurance under these circumstances, and thus begins the “catch 22” coverage issue.
Period 2: Ride Accepted, Driving to Pick Up Passenger
Once a driver has accepted a ride and is driving to pick up the passenger, there is a completely new scenario regarding insurance coverage. It is at this point that the $1 million combined single limit liability coverage provided by both Uber and Lyft kicks in and stays in place until passenger drop-off.
The $1 million insurance policy covers injuries and property damage suffered by third parties because of the negligence of the rideshare driver. Injuries sustained by pedestrians, other motorists, and cyclists fall under this category.
Period 3: Passenger Is In The Car
During Period 3, which starts when a rider enters the car and ends once they exit the vehicle at their destination, the same $1 million liability policy is in play. At this time, both Uber and Lyft provide contingent comprehensive and collision insurance coverage as well as uninsured/underinsured motorist coverage.
The Problem of Period 1 Coverage
Among the three active periods discussed above (1-3), Period 1 poses more problems than the others as far as insurance cover is concerned.
A scenario: You get into an accident caused by a driver with an app open, waiting to receive a ride request. It was clearly the other driver’s fault. But now that you know your case should be straightforward, you learn that the personal insurance provider denies any responsibility, citing a TNC exclusion, while the insurer for Uber claims the driver’s policy should come first. Now you are stuck in the insurance dispute between two insurers, and neither insurer acts on your behalf.
It’s a common issue in a Lyft accident claim in Phoenix. In the first period, you can only claim the minimum statutory insurance amount of $50,000 per individual involved. And that is substantially less than what you could get under Policies 2 and 3 that include $1 million worth of insurance coverage.
Frequently Asked Questions
Q: Who will cover me for injuries sustained in an Uber/Lyft accident in Arizona?
That would depend on what the driver was doing during the time of the accident. According to Arizona Revised Statute 28-4009, Arizona categorizes rideshare policies into three parts. The one-million-dollar liability policy by Uber and Lyft applies if the driver had picked up a passenger or was transporting one. If the driver was waiting for a pickup request while the app was active, there is another lower level of contingent coverage that can be contested by the insurer of the TNC.
Q: What does the $1 million insurance cover, and when can I claim it for a rideshare accident?
Uber and Lyft both offer a $1 million insurance policy that is only applicable in periods 2 and 3—when the driver has left his location for the passenger pick-up point and when the passenger is in the vehicle, respectively. The $1M policy provides protection against any bodily injuries or property damage caused due to negligence on the part of the rideshare driver.
Q: What actions should I take immediately after a rideshare accident in Phoenix?
Seek medical attention immediately, even if your injuries do not appear severe—some potentially fatal conditions can be asymptomatic. Alert the authorities and obtain a copy of the crash report. Take photos of the accident scene, the license plates and markings of the rideshare vehicle, and the driver’s information.
Be sure to take screenshots of the trip in question in the Uber or Lyft app while the session is still active to secure evidence of your ride and the driver’s identity. Refrain from giving any recorded statements to insurance adjusters until you consult a rideshare accident lawyer in Phoenix.
Q: Am I able to sue Uber or Lyft for my injuries?
Typically, Uber and Lyft consider drivers to be independent contractors, meaning the companies are usually unable to be held liable for injuries under the respondeat superior doctrine. However, a rideshare company like Uber can be held liable for its negligence regarding hiring practices, adherence to safety regulations, or negligent entrustment of its service. Furthermore, Uber and Lyft have a commercial liability insurance plan that operates independently from liability against the company itself. YourPhoenix rideshare injury lawyer will examine all applicable legal claims.
Q: How long do I have to file a rideshare accident claim in Arizona?
In most cases of rideshare accidents in Arizona, the two-year statute of limitation for personal injury claims applies, per ARS 12-542. The clock normally begins ticking from the day of the accident. But if there was negligence on the part of a government entity, such as when a state or municipal road authority responsible for road maintenance was negligent and caused the accident, then the one-year period under the Arizona Tort Claims Act kicks in, with a 180-day notice provision.
Speak to a Rideshare Accident Lawyer in Phoenix
The law on rideshare accidents can be quite complex. If you’ve been injured in a rideshare accident in Phoenix, the time to contact an Uber accident attorney in Phoenix, AZ is now.
Our Phoenix rideshare accident lawyers here at Lerner and Rowe know all about the three-part insurance process, know how to go after the commercial insurance policies of Uber and Lyft, and can deal with the coverage issues that complicate these cases more than anyone would expect. There are absolutely no fees upfront, and you only pay if we win, so you have nothing to lose.
Contact us at (602) 977-1900, fill out our contact form on our website, or chat with us using LiveChat now.
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.