Uber and Lyft Accidents in Utah: Whose Insurance Pays?

Short answer: It depends on what the rideshare driver was doing in the app at the moment of the crash. Utah law sets different minimum coverage for three situations: app off, app on and waiting for a request, and a ride that has been accepted or is under way. Your own PIP and uninsured or underinsured motorist coverage can also come into play.

Uber and Lyft crashes are harder to sort out than ordinary crashes because the same car can be covered by different policies at different times of the day. Utah’s Transportation Network Company Registration Act, Title 13, Chapter 51 of the Utah Code, sets the rules.

The Three App Statuses

Utah law uses two defined terms. A “prearranged ride” begins when the driver accepts a passenger’s request through the app and ends when the passenger exits the vehicle. A “waiting period” is time when the driver is logged into the app but not engaged in a prearranged ride (Utah Code 13-51-102). That gives three situations.

1. App off

When the driver is not logged in, the rideshare rules do not apply. The driver is just a driver, and the claim runs against the driver’s personal auto policy like any other crash.

2. App on, waiting for a request

During a waiting period, the driver or the company must maintain primary coverage that includes liability of at least $50,000 per person, $100,000 for all persons and $30,000 for property damage per occurrence, along with personal injury protection and uninsured and underinsured motorist coverage where Utah law requires them (Utah Code 13-51-108(2)).

3. Ride accepted, en route or passenger on board

Because a prearranged ride begins at acceptance, the higher coverage starts the moment the driver accepts the request, not when the passenger gets in. During a prearranged ride, primary coverage must include liability of at least $1,000,000 per occurrence, plus PIP and uninsured and underinsured motorist coverage where required (Utah Code 13-51-108(1)).

These are the minimums Utah requires. A company’s actual policy may be written differently, and the policy that applies should be confirmed in each case.

Protections Built Into the Statute

Section 13-51-108 includes several rules that help injured people:

• No “deny first” requirement. The rideshare coverage may not be conditioned on the driver’s personal auto insurer first denying the claim (13-51-108(10)).
• Backstop if the driver’s coverage lapses. If insurance the driver maintains lapses or ceases to exist, the rideshare company must provide the required coverage beginning with the first dollar of a claim (13-51-108(9)).
• Duty to defend. An insurer that covers the driver specifically for rideshare work must defend liability claims from crashes that happen while the driver is providing those services (13-51-108(8)).

At the same time, a personal auto policy may exclude losses that arise while the car is being used for rideshare services (13-51-108(11)). That is why the app status matters so much: if the app was on, the personal insurer may point to the rideshare coverage.

How It Works for You, Depending on Who You Were

Rideshare passenger

PIP comes first. Utah extends PIP benefits to anyone injured while occupying the insured vehicle with consent, and the policy on the vehicle in use is primary (Utah Code 31A-22-308(3)(a); 31A-22-309(4)). A passenger is by definition in a prearranged ride, so the $1,000,000 minimum applies to a claim against the rideshare driver. If another driver caused the crash, the claim goes against that driver’s policy, and the rideshare policy’s uninsured or underinsured coverage may help if the other driver’s coverage is missing or too small. For settlement factors specific to passengers, see Uber passenger accident settlements.

Driver of another car

If the rideshare driver caused the crash, your claim runs against whichever coverage applied to that driver’s app status at that moment. Your own PIP pays first for your medical bills and lost wages, as in any Utah crash. If the rideshare driver had the app off and carried only minimum limits, your own underinsured motorist coverage may be needed; see underinsured motorist claims in Utah.

Pedestrian or cyclist

A pedestrian injured in Utah by an insured vehicle can receive PIP benefits under that vehicle’s policy (Utah Code 31A-22-308(3)(b)). Beyond PIP, the liability claim again depends on the driver’s app status.

In every case, the claim for pain and suffering and other general damages depends on meeting Utah’s tort threshold: more than $3,000 in medical expenses, or a bone fracture, permanent disability or impairment, permanent disfigurement, dismemberment or death (Utah Code 31A-22-309(1)).

Proving the App Status

Because coverage turns on app status, the first factual fight is often about what the driver was doing. Useful evidence includes:

• the trip receipt or ride history if you were the passenger;
• photos of the rideshare decal or the driver’s phone mount;
• what the driver said at the scene, written down that day;
• the police report, which may note that the vehicle was operating for Uber or Lyft; and
• the company’s own trip and log-in records, which usually have to be requested formally.

Driverless Rideshares

Utah’s definitions now reach vehicles with a level four or five automated driving system that are used to give passengers rides for compensation (Utah Code 13-51-102). If a crash involves a self-driving vehicle, see self-driving car crashes in Utah.

Talk to a Utah Rideshare Accident Attorney

A rideshare claim can involve the driver’s personal insurer, the rideshare company’s insurer and your own policy at the same time. Learn more about how we handle these cases on our Salt Lake City rideshare accident lawyer page.

Hurt in Utah? Call (801) 921-5134 or send us your case for a free consultation. No attorney fees unless we win. Hablamos Español.