Quick Answer
California Public Utilities Code §§5430-5443.5 sets up three insurance phases. Phase 1 (app on, no ride accepted): contingent liability of $50,000 per person / $100,000 per accident / $30,000 property damage. Phase 2 (en route to passenger): $1,000,000 commercial liability. Phase 3 (passenger in the vehicle): $1,000,000 commercial liability plus $1,000,000 uninsured/underinsured motorist coverage. If the app is off, only the driver’s personal auto policy applies.
Reviewed by Daryoosh Khashayar, ABOTA Member, founder and managing partner of Khashayar Law Group — Last updated May 2026.
The three-phase rideshare insurance structure was created by California Public Utilities Code §5433 in 2014 specifically because rideshare drivers occupy a hybrid space between personal and commercial driving. The phase that applied at the exact moment of the crash determines which policy pays and how much coverage is available.
Establishing the phase requires the rideshare company’s trip data — GPS records, driver app status logs, and ride acceptance timestamps. Daryoosh Khashayar subpoenas this data early in every rideshare case to lock in the applicable coverage level before the insurer can take a different position.
The largest recoveries occur in Phase 3, where both the $1,000,000 commercial liability policy and the separate $1,000,000 uninsured/underinsured motorist policy apply. Together, those two policies represent $2,000,000 of available coverage even when the at-fault driver has no insurance of their own.
Phase 1 is when the driver is logged into the rideshare app but has not yet accepted a ride request. The rideshare company provides contingent liability coverage:
This coverage is “contingent” — meaning the driver’s personal auto policy is primary, and the TNC coverage only pays if the personal policy denies coverage (which most do, because personal auto policies typically exclude commercial activity). Phase 1 is the smallest coverage window and the source of most rideshare disputes.
Phase 2 begins the moment the driver accepts a ride and ends when the passenger enters the vehicle. The full $1,000,000 commercial liability policy applies. This coverage is primary — the personal auto policy does not need to deny first. Anyone injured during Phase 2 (the rideshare driver, another driver, a pedestrian, a cyclist) is covered up to the $1,000,000 limit.
Phase 3 is the strongest coverage period. From the moment a passenger enters the vehicle until they exit:
The UM/UIM coverage is what makes Phase 3 unique. In a standard car crash, if the at-fault driver has minimum insurance ($15,000 per person in California), that’s the cap. In Phase 3, the rideshare UM/UIM policy stacks an additional $1,000,000 on top.
If the rideshare app was off at the moment of the crash, the rideshare company’s coverage does not apply at all. Only the driver’s personal auto policy is in play. Most personal auto policies in California carry the state minimum of $15,000/$30,000 liability, which is rarely enough to cover serious injuries.
This is where establishing the phase precisely matters: if there is any ambiguity about whether the app was on, the rideshare insurer will argue it was off. Subpoenaing the rideshare company’s app status logs in the first 30 days is what resolves the dispute.
This FAQ relates to our Rideshare Accidents practice. To establish which insurance phase applied to your case, call (858) 509-1550 for a free consultation.