Rideshare services like Uber and Lyft have transformed transportation across Massachusetts, offering convenience for commuters, travelers, and residents alike. Yet when a rideshare vehicle is involved in a collision, determining who is legally and financially responsible for personal injury is rarely straightforward. Many accident victims assume that the rideshare company automatically pays for all damages, but that’s not always true. Liability and insurance coverage depend on what the driver was doing at the time of the crash—whether they were off-duty, waiting for a ride, or actively transporting a passenger.
Understanding how Massachusetts rideshare insurance laws work can make a major difference in protecting your right to compensation for serious injuries after a motor vehicle accident involving a rideshare automobile.
How Massachusetts Regulates Rideshare Drivers
In Massachusetts, Uber and Lyft are classified as Transportation Network Companies (TNCs) under state law (M.G.L. c. 159A½). Their drivers are considered independent contractors, not employees, which means Uber and Lyft are generally not automatically liable for a driver’s negligence. However, the law requires both the driver and the rideshare company to maintain specific levels of auto insurance coverage based on the driver’s app activity at the time of the accident.
- When the App Is Turned Off
If a rideshare driver is not logged into the app, the vehicle is considered a personal vehicle, and only the driver’s private auto insurance applies. Uber and Lyft provide no coverage in this situation.
Example: A driver completes their shift, logs out of the app, and later causes an accident while driving home. In that case, their personal policy—not Uber or Lyft—covers the damages.
- When the App Is On but No Ride Has Been Accepted
When a driver is logged into the app and waiting for a ride request, limited or “contingent” insurance coverage applies. Uber and Lyft provide backup protection if the driver’s personal policy doesn’t cover the crash or isn’t sufficient.
This contingent policy provides up to:
- $50,000 in bodily injury coverage per person,
- $100,000 per accident for multiple injuries, and
- $25,000 for property damage.
This phase often leads to disputes between insurance companies, as both the driver’s and the rideshare company’s insurers may attempt to deny or limit coverage based on the timing of the accident.
- When the Driver Has Accepted a Ride or Has a Passenger
Once the driver accepts a trip request or has a passenger in the vehicle, Uber and Lyft’s full commercial insurance policy takes effect. This is the most comprehensive level of protection under Massachusetts law and includes:
- $1 million in third-party liability coverage,
- Uninsured and underinsured motorist coverage, and
- Contingent comprehensive and collision coverage (if the driver carries those options on their personal policy).
Example: A Lyft driver picks up a passenger in Newton and is struck by another car en route to Logan Airport. Lyft’s $1 million liability coverage would protect the passenger and potentially others injured in the crash.
No-Fault Insurance and Rideshare Accidents
Massachusetts follows a no-fault insurance system, meaning injured drivers and passengers typically first file a Personal Injury Protection (PIP) claim with their own insurance to cover immediate medical costs and lost wages. However, if injuries exceed $2,000 in medical expenses or cause permanent injury, victims may pursue a claim against the at-fault driver’s insurance—and in a rideshare case, that could include the driver’s insurer, Uber or Lyft’s policy, or both.
Common Questions About Rideshare Liability
- Can I sue Uber or Lyft directly?
Usually, no. Because drivers are independent contractors, claims typically go through the company’s insurance policy, not against Uber or Lyft as a corporation. - What happens if the driver was between rides?
The limited contingent coverage applies only after the driver’s personal policy is exhausted or denied. - How do I know if the app was active?
Rideshare companies maintain digital trip data that can confirm the driver’s app status at the exact time of the crash—a critical detail for determining coverage.
Why You Need Experienced Legal Representation
Rideshare accidents can be legally complex, with multiple insurance carriers involved and questions about who was “on the clock” when the collision occurred. Insurance adjusters often delay or deny valid claims by disputing coverage or fault. An experienced Massachusetts personal injury attorney can obtain Uber or Lyft’s electronic trip records, identify all available insurance coverage, and negotiate on your behalf to recover fair compensation.
Protecting Your Rights After a Rideshare Collision
Whether you were a passenger, pedestrian, or another motorist, you deserve clarity and fair compensation for your injuries. Massachusetts insurance law is designed to protect victims—but only when the correct coverage applies.
If you’ve been hurt in a collision involving an Uber or Lyft driver, don’t try to handle the process alone. Contact our firm today to speak with an experienced Massachusetts personal injury lawyer. We can explain how rideshare coverage, liability laws, and no-fault insurance interact—and help you pursue full compensation for your medical bills, lost income, and pain and suffering.