Who Is Liable for an Uber or Lyft Accident in Pacoima?

Arya Firoozmand, Esq.

Local Pacoima Injury Attorney · UCLA Law

Arya Firoozmand is the founding partner at L&F Brown. A San Fernando Valley native, he graduated from El Camino Real High School and UCLA Law School. He represents injured clients from every corner of the Valley, from Woodland Hills to Pacoima.

You were in a rideshare accident in Pacoima and you want to know who is responsible. Is it the Uber or Lyft driver? The company itself? A third driver who caused the crash? The answer is not as straightforward as it should be, and the rideshare companies have designed it that way.

The Independent Contractor Problem

Uber and Lyft classify their drivers as independent contractors, not employees. This distinction matters because companies are generally liable for the actions of their employees but not for the actions of independent contractors. The rideshare companies use this classification as a shield against direct liability when their drivers cause accidents.

California has pushed back on this classification through AB5 and Proposition 22, but the practical result is that Uber and Lyft still structure their liability exposure through insurance coverage tiers rather than direct corporate liability. Instead of being liable as an employer, they provide insurance that covers certain situations depending on the driver's status in the app.

Liability Based on Driver App Status

The driver's status in the Uber or Lyft app at the moment of the crash determines who is liable and what insurance applies.

Phase 1: App off. The driver is just another motorist on Van Nuys Blvd or Foothill Blvd. Uber and Lyft have zero liability. The driver's personal auto insurance is the only coverage available. If that driver hits you, your claim is against them individually.

Phase 2: App on, waiting for a ride request. The driver is available but has not accepted a trip. Uber and Lyft provide limited liability coverage: $50,000 per person for bodily injury, $100,000 per accident, and $25,000 for property damage. This coverage kicks in after the driver's personal insurance is exhausted or denies the claim.

Phase 3: En route to pickup or on an active trip. The driver has accepted a ride request or has a passenger in the vehicle. Uber and Lyft provide $1 million in combined single-limit liability coverage and $1 million in uninsured/underinsured motorist coverage. This is the full coverage tier and provides the most protection for anyone injured in the accident.

Determining the driver's exact app status requires trip data from Uber or Lyft. A Pacoima rideshare accident lawyer can obtain this data through formal discovery or pre-litigation requests.

When the Rideshare Driver Is at Fault

If the Uber or Lyft driver caused the accident, whether by running a red light on Van Nuys Blvd, rear-ending someone on Foothill Blvd, or making an unsafe lane change on the 118 Freeway, the driver bears primary fault. The applicable insurance coverage depends on the driver's app status as described above.

Rideshare drivers in Pacoima face specific distractions that contribute to accidents. They are constantly checking the app for new ride requests, looking at navigation for pickup and dropoff locations, and making sudden stops in traffic to pick up or drop off passengers. These behaviors create liability when they result in crashes.

When a Third Party Is at Fault

Sometimes the rideshare driver did nothing wrong. Another driver ran a stop sign and hit the Uber. A delivery truck on I-5 changed lanes into the Lyft. In these situations, the third-party driver bears liability, and their insurance is the primary source of compensation.

If the third-party driver is uninsured or underinsured, which is common in Pacoima and across LA County, Uber and Lyft's uninsured/underinsured motorist coverage (available during Phase 3) can fill the gap. This is an important safety net for passengers who might otherwise be left without adequate compensation.

CHP handles accident investigations on the 118 Freeway and I-5, while LAPD handles incidents on Pacoima city streets. The investigating agency's report is a key piece of evidence in establishing third-party fault.

Shared Liability Situations

Many rideshare accidents involve shared fault. The rideshare driver was checking the app while a third driver was speeding. The Uber driver made a wide turn on Foothill Blvd while the other driver was following too closely. California's comparative fault system apportions liability based on each party's percentage of fault.

This can actually benefit you as a claimant. When two or more parties share fault, you can pursue claims against all of them. If the rideshare driver is 40% at fault and the third driver is 60% at fault, you can recover from both parties' insurance coverage.

Vehicle Owner Liability

Most rideshare drivers own the vehicle they drive. But some drivers in Pacoima lease or borrow vehicles. California's permissive use doctrine can extend liability to the vehicle owner, adding another potential source of recovery. If the driver was using a rental vehicle through a rideshare vehicle rental program, the rental company's insurance may also apply.

What This Means for Your Claim

The multi-layered liability in rideshare cases creates both opportunity and complexity. More liable parties means more available insurance, which increases the potential recovery. But navigating the liability analysis requires an attorney who understands rideshare insurance structures and can identify every party that shares responsibility for your injuries.

The Three Insurance Tiers in Rideshare Cases

Rideshare accident cases in Pacoima involve a layered insurance system that determines which policy covers your injuries. The coverage depends on what the driver was doing at the moment of the crash on Van Nuys Blvd, Foothill Blvd, the 118 Freeway, and I-5.

When the driver has the app off, their personal auto insurance is the only coverage available. Once the driver turns on the app and is waiting for a ride request, Uber and Lyft provide limited liability coverage, typically $50,000 per person and $100,000 per accident. This coverage fills gaps if the driver's personal insurance denies the claim because the driver was using the vehicle for commercial purposes.

Once the driver accepts a ride request and is en route to pick up a passenger, or has a passenger in the vehicle, the full commercial policy activates. This provides up to $1 million in liability coverage. This is the highest tier and applies to the majority of rideshare accidents that cause serious injuries.

Determining which tier applies requires examining the driver's app data at the exact moment of the crash. This data is controlled by Uber or Lyft and must be obtained through legal discovery or a preservation demand from your attorney. Without this data, the insurance companies will dispute which policy covers your claim, and each will try to shift responsibility to the other.

Cases that proceed to litigation are heard at Van Nuys Courthouse West. An attorney who understands the rideshare insurance structure and has experience obtaining app data through discovery can navigate this process efficiently and maximize your available coverage.

If your case proceeds to litigation, it will be filed at Van Nuys Courthouse West. Contact L&F Brown for a free evaluation of your rideshare accident claim. Visit our Pacoima personal injury page to get started.