Who Pays After a New Jersey Rideshare (Uber or Lyft) Accident?

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By Michael J. Epstein — Managing Partner, The Epstein Law Firm · Englewood Cliffs & Montclair, NJ Last updated June 23, 2026

In short

Who pays after a New Jersey Uber or Lyft crash depends on what the driver was doing in the app at the moment of the collision. If the app was off, the driver’s personal auto policy applies. If the driver was logged in and waiting for a request, at least $50,000 per person in coverage applies. If the driver was on the way to a rider or on a trip, New Jersey requires up to $1.5 million in coverage. Your own no-fault (PIP) coverage usually pays your first medical bills regardless of fault, a two-year deadline applies to most injury claims, and being more than 50% at fault bars recovery.

 

It depends on the app: New Jersey’s three rideshare insurance periods

New Jersey’s Transportation Network Company Safety and Regulatory Act (N.J.S.A. 39:5H-1 et seq.) sets the insurance rules for Uber, Lyft, and similar services, and the coverage that applies turns on the driver’s status in the app (N.J.S.A. 39:5H-10):

• App off (driver not logged in). The company’s coverage doesn’t apply. The driver’s personal auto policy is the source of any recovery, just like an ordinary crash.
• Logged in, waiting for a ride request. At least $50,000 per person and $100,000 per accident for bodily injury, plus $25,000 for property damage, along with primary PIP (no-fault) benefits and uninsured/underinsured motorist coverage.
• En route to a rider or on a trip. At least $1.5 million in combined coverage for death, bodily injury, and property damage, plus $10,000 in medical payments per person and $1.5 million in uninsured/underinsured motorist coverage.

Two points matter for injured passengers. First, during the active periods the company’s coverage is primary — it pays first, not as a backstop. Second, New Jersey law does not let the company deny coverage just because the driver’s personal policy excludes rideshare use (a common exclusion). That combination is why preserving your trip records is so important: they prove which period was in effect.

Who pays your medical bills first: New Jersey no-fault (PIP)

New Jersey is a no-fault state (N.J.S.A. 39:6A-1 et seq.). That means Personal Injury Protection (PIP) generally pays your initial medical expenses regardless of who caused the crash (N.J.S.A. 39:6A-4). For an injured rideshare passenger, the order of which policy pays first can depend on your own coverage and the driver’s status, but the practical effect is that medical care can begin without waiting to prove fault. During an active trip, the rideshare policy also includes at least $10,000 in medical payments per person.

Can you sue for pain and suffering? The verbal threshold

Whether you can recover for pain and suffering (non-economic damages) often depends on the “lawsuit option” you chose on your own New Jersey auto policy. If you selected the limitation on lawsuit (the “verbal threshold”), you can pursue non-economic damages only if your injury fits a category in N.J.S.A. 39:6A-8 — including death, dismemberment, significant disfigurement or scarring, a displaced fracture, loss of a fetus, or a permanent injury. The threshold does not block claims for economic losses like medical bills and lost wages. We explain this in more detail in our guide, New Jersey’s Verbal Threshold in Auto Insurance Policies.

How long you have to file: deadlines

Most New Jersey personal-injury claims must be filed within two years of the crash (N.J.S.A. 2A:14-2). For an injured minor, that clock generally doesn’t start until age 18.

There’s an important exception that comes up around major events and transit-heavy trips: if a public entity shares fault — for example, a New Jersey Transit bus, a government-owned vehicle, or a dangerous road condition — the Tort Claims Act requires a notice of claim within 90 days (N.J.S.A. 59:8-8), long before the two-year filing deadline. Missing that 90-day window can end an otherwise valid claim, so it’s worth getting advice quickly when a bus, shuttle, or public roadway is involved.

If you were partly at fault: comparative negligence

New Jersey follows modified comparative negligence (N.J.S.A. 2A:15-5.1). Your recovery is reduced by your share of fault, and if you are found more than 50% at fault, you recover nothing. Below that line, a recovery is still available, just reduced — which is why how fault is assigned (and argued) directly affects what a claim is worth.

Special situations

• Out-of-state visitors. If you’re visiting New Jersey — common during a major event — and you’re hurt in a rideshare, which state’s rules govern can require a closer look. The New Jersey coverage rules above still frame what’s available here.
• Food delivery is different. A New Jersey appeals court held that the rideshare insurance act covers the transport of people, not app-based food delivery. A crash during an Uber Eats-type delivery is analyzed differently.
• Disputes over app status. Because coverage turns on what the driver was doing in the app, companies sometimes dispute the period. Your saved trip records — and the company’s own data — are the evidence that settles it.

Frequently asked questions

Does Uber or Lyft’s insurance cover me as a passenger in New Jersey? Yes. If you’re injured as a passenger during a trip, New Jersey requires up to $1.5 million in coverage, and that coverage is primary.

What if the rideshare driver’s personal insurance won’t pay? New Jersey doesn’t let the company deny its required coverage just because the driver’s personal policy excludes rideshare use. During the active periods, the company’s coverage applies.

Will my own insurance pay my medical bills? Often yes — New Jersey’s no-fault PIP generally covers initial medical expenses regardless of fault.

How long do I have to file a claim? Generally two years from the crash. But if a public entity like NJ Transit is involved, a 90-day notice deadline can apply — act quickly.

What if I was partly at fault? You can still recover as long as you were not more than 50% at fault; your recovery is reduced by your share.

Hurt in a rideshare crash?

If you were injured in an Uber or Lyft crash anywhere in New Jersey, The Epstein Law Firm can identify which coverage applies and protect your deadlines. Call (201) 231-7847 for a free consultation — offices in Englewood Cliffs and Montclair.

About Michael J. Epstein

Michael J. Epstein, a Harvard Law School graduate, is a trial lawyer and managing partner of The Epstein Law Firm, P.A., a law firm based in New Jersey.

 

This article is for general informational purposes only and is not legal advice; reading it or contacting the firm does not create an attorney-client relationship. Results may vary depending on your particular facts and legal circumstances.