Who Pays When an Uber or Lyft Crashes?

 Posted on February 25, 2026 in Car Accidents

You called an Uber or Lyft to get somewhere safely. Instead, you ended up hurt. Now you are dealing with medical bills, missed work, and one urgent question: who is responsible for paying? 

If you were injured in a rideshare crash in Chicago in 2026, the answer depends on a set of rules most people have never heard of until they need them. A free consultation with a Chicago personal injury attorney can help you understand exactly where you stand.

Who Is Liable After an Uber or Lyft Accident in Chicago?

Liability, which means legal responsibility, depends on what the driver was doing at the exact moment of the crash. There are three potential parties involved in a rideshare accident. A Chicago personal injury attorney can investigate all three on your behalf.

Uber or Lyft as a Company

Both companies carry commercial insurance policies that can cover accident victims, but only under specific circumstances tied to which phase of the ride the driver was in at the time of the crash. If you were a passenger during an active ride, the rideshare company’s insurance provides liability coverage. 

The Rideshare Driver

Uber and Lyft drivers are almost always classified as independent contractors, not employees. If the driver caused the crash through speeding, distracted driving, or any other negligent or careless behavior, they can sometimes be held personally liable for your injuries. This is especially true when damages exceed the limits of the rideshare company’s insurance policy. 

A Third-Party Driver

If another driver caused the accident, their liability insurance becomes the primary source of compensation. If that driver is uninsured or underinsured, Uber's and Lyft's uninsured motorist coverage may step in.

How Does Uber and Lyft Insurance Coverage Work in Illinois?

Both Uber and Lyft structure their insurance coverage in three phases based on the driver's activity at the time of the crash.

Phase 1: App Off

The driver's rideshare app is off. Only their personal auto insurance applies. Uber and Lyft provide zero coverage. In this situation, your claim proceeds like a standard car accident case.

Phase 2: App On, No Ride Accepted Yet

The driver is waiting for a request but has not yet accepted one. Uber and Lyft provide limited contingent liability coverage in Illinois:

• $50,000 per person for bodily injury.
• $100,000 per accident for bodily injury.
• $25,000 for property damage.

This contingent coverage only applies if the driver's personal insurance denies the claim or does not cover it.

Phase 3: Ride Accepted or Passenger in the Vehicle

Once the driver accepts a ride or picks up a passenger, Uber and Lyft's full commercial policy applies, with up to $1 million in liability coverage. This is the coverage most injured passengers rely on.

What Does Illinois Law Require of Uber and Lyft, and What Can You Recover After a Crash?

Under the Illinois Transportation Network Providers Act, 625 ILCS 57/10, rideshare companies must maintain specific minimum insurance coverage for their drivers at each phase of a trip. Illinois law prevents Uber and Lyft from leaving accident victims without coverage when a driver is actively working on their platform.

Illinois also gives personal injury victims two years to file a lawsuit. Under the Illinois Code of Civil Procedure, 735 ILCS 5/13-202, missing that deadline, called the statute of limitations, means permanently losing your right to seek compensation, so act quickly.

Illinois also follows a modified comparative fault rule, which means you can still recover compensation even if you were partly at fault, as long as you were not more than 50 percent responsible.

If you were injured in a rideshare accident in Chicago or Hyde Park, you may be entitled to compensation for:

• Medical expenses, including emergency care and future treatment.
• Lost wages and reduced earning capacity.
• Pain and suffering.
• Permanent disability or disfigurement in serious cases.

Schedule a Free Consultation with a Chicago, IL Rideshare Accident Attorney

If you were hurt in an Uber or Lyft accident in Chicago, you deserve answers and fair compensation for what you have been through. You do not have to face Uber and Lyft's insurance teams alone.

Our Hyde Park, IL personal injury lawyer at Kadzai Law Group, LLC offers free consultations and can evaluate your case. We understand how complicated rideshare insurance claims can be, but we are here to help you through every step of the process. Call Kadzai Law Group, LLC at 312-229-0050 today to speak with us about your rideshare accident case.