Frequently Asked questions

Can I sue Uber or Lyft directly after a rideshare crash?

Quick Answer

If the driver’s app was active, applicable TNC insurance under California Public Utilities Code §§5430-5443.5 may be available depending on the driver’s status (Phase 1, 2, or 3) and the law in effect on the crash date. Direct claims against Uber, Lyft, or another TNC depend on the facts, available legal theories, and the evidence — including possible negligent hiring or retention theories under PUC §5445.2. The practical recovery path in most cases runs through the TNC’s commercial insurance, not necessarily through a direct claim against the company itself.

Reviewed by Daryoosh Khashayar, ABOTA Member, founder and managing partner of Khashayar Law Group — Last updated May 2026.

Uber and Lyft are classified as Transportation Network Companies (TNCs) under California Public Utilities Code §5431. The TNC classification triggers the insurance requirements of PUC §5433, driver background check obligations under PUC §5445.2, and vehicle inspection requirements under PUC §5440.

Whether the rideshare company itself can be named as a direct defendant, rather than the insurer of record, depends on the driver’s classification at the time of the crash and the specific facts. California law in this area continues to evolve through legislation (including Proposition 22) and ongoing litigation. Direct corporate liability remains available for the company’s own conduct — particularly negligent hiring or retention if the driver had a disqualifying record under PUC §5445.2.

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What does TNC classification mean for rideshare lawsuits?

TNC status under California Public Utilities Code §5431 imposes three obligations relevant to crash victims:

  • Minimum commercial insurance under PUC §5433 (Phase 1, 2, and 3 limits).
  • Driver background checks under PUC §5445.2.
  • Vehicle inspection requirements under PUC §5440.

A violation of these obligations may support a direct claim against the TNC in addition to a claim under the applicable insurance.

When can Uber or Lyft be sued for negligent hiring?

A direct claim for negligent hiring, retention, or supervision may be available when the driver had a prior DUI, sexual assault, or violent felony that should have disqualified them under PUC §5445.2 but was not caught by the background check; when the driver had prior passenger complaints that were received and ignored; or when the company knew or should have known of conduct that made the driver unsafe.

These claims are based on the company’s own conduct rather than vicarious liability for the driver, so they generally survive the independent-contractor classification issue.

What is the practical recovery strategy?

In most rideshare crashes, recovery may come from one or more of the following sources:

  1. The TNC’s commercial policy under PUC §5433 ($1,000,000 primary liability in Phase 2 or 3).
  2. The TNC’s UM/UIM coverage in Phase 3 ($60,000 per person / $300,000 per incident under current law).
  3. The at-fault third-party driver’s personal auto policy, where another driver caused the crash.
  4. A direct claim against the TNC for negligent hiring or supervision, where the facts support one.

Coverage on any specific claim should be evaluated under the law in effect on the crash date and the available evidence.

Sources

This FAQ relates to our Rideshare Accidents practice. For a free consultation, call (858) 509-1550.

Legal review note. This FAQ was reviewed for general California personal-injury and TNC procedure and is current as of May 2026. Statutes, insurance requirements, and case law can change. This article is general information, not legal advice.

Rideshare insurance note. California TNC insurance requirements have changed over time. Coverage should be evaluated under the law in effect on the crash date and the applicable version of California Public Utilities Code §5433. Older CPUC guidance materials may still reference superseded UM/UIM amounts.

Case results disclosure. Past results do not guarantee future outcomes. Direct corporate liability against Uber, Lyft, or another TNC depends on the specific facts, available legal theories, evidence, applicable law, and the version of the statute in effect on the crash date.