Master California's TNC insurance framework and generate professional demand letters for Uber and Lyft injuries. Whether you're a passenger, another driver, or a pedestrian hit by a rideshare vehicle—understand coverage periods, identify the right insurer, and demand fair compensation.
A rideshare demand letter is a formal written settlement proposal sent to the insurer (Uber/Lyft's carrier or the driver's personal insurer) that establishes liability, documents injuries and damages, and demands compensation.
Rideshare accidents involve layered insurance that depends on the driver's app status at the moment of collision. The same Uber driver might have $15K coverage (app off), $100K coverage (app on, waiting), or $1 million coverage (passenger aboard)—all within the same hour.
Your demand letter must correctly identify which policy applies, or you're leaving money on the table.
California PUC § 5433 and Insurance Code § 11580.9 require Uber and Lyft to maintain specific coverage at each stage of the ride.
Period 1 is the most dangerous coverage gap in rideshare law:
If you're seriously injured by a driver in Period 1, you may need to pursue your own UM/UIM coverage or litigate to prove the driver was actually in Period 2 or 3.
| Period | Driver Status | Liability Coverage | UM/UIM Coverage | Who Pays First |
|---|---|---|---|---|
| Period 0 | App completely off | Driver's personal limits (CA min: $15K/$30K/$5K) | Driver's personal UM/UIM | Driver's personal insurer |
| Period 1 | App on, waiting for ride | $50K/$100K/$30K (contingent) | $200K (contingent) | Personal first; TNC if denied |
| Period 2 | En route to pickup | $1,000,000 (primary) | $1,000,000 | Uber/Lyft's commercial policy |
| Period 3 | Passenger in vehicle | $1,000,000 (primary) | $1,000,000 | Uber/Lyft's commercial policy |
Your claim strategy depends on whether you were a passenger, a third party, or the driver.
If you were a passenger in an Uber or Lyft during Periods 2 or 3:
Uber and Lyft's commercial policies do NOT cover the rideshare driver's own injuries. If you're a driver injured in a crash:
California law has several quirks that affect rideshare injury claims.
California's "Howell rule" limits medical damage recovery to amounts actually paid, not the full billed amount. If the hospital billed $50,000 but your insurance negotiated it down to $15,000, the insurer will argue your medical damages are only $15,000.
Demand letter tip: Include both billed amounts and paid amounts. Argue for billed amounts for any liens or future care needs.
If you were uninsured at the time of the accident, California Civil Code § 3333.4 (Prop 213) bars you from recovering non-economic damages (pain and suffering) even if you were 100% not at fault.
You can still recover economic damages (medical bills, lost wages, property damage), but your claim value is significantly reduced.
Uber and Lyft user agreements contain arbitration clauses and class-action waivers. However:
Document everything thoroughly—especially evidence of the driver's app status.
The most important evidence in any rideshare claim is proof of which period the driver was in:
Your demand letter should request that Uber/Lyft preserve:
What to expect from Uber/Lyft's insurers and how to move your claim forward.
California Code of Civil Procedure § 335.1: You have 2 years from the date of injury to file a personal injury lawsuit. Property damage claims have 3 years (§ 338).
Don't wait until the last minute—discovery of app records can take months.
Periods 2 & 3: Send to Uber/Lyft's commercial carrier (typically James River for Uber, varies for Lyft).
Period 1: Send to driver's personal insurer first; if denied, send to Uber/Lyft's contingent carrier.
Period 0 or disputed: Send to all potentially liable insurers and let them sort it out.
| Injury Severity | Typical Range | Notes |
|---|---|---|
| Minor (soft tissue, resolved quickly) | $5,000 - $25,000 | Often settled without attorney |
| Moderate (fractures, extended treatment) | $25,000 - $100,000 | Attorney helps with Howell/comparative issues |
| Serious (surgery, long-term effects) | $100,000 - $500,000 | Usually requires attorney; may approach policy limits |
| Severe/Catastrophic | $500,000 - $1,000,000+ | Policy limits demands; may need excess coverage |
Get professional guidance on your California rideshare injury case.