Rideshare Accident UM/UIM Coverage in Illinois: Uber and Lyft Claims

Rideshare accidents add layers of insurance complexity. Uber and Lyft drivers carry their own personal auto policies, the rideshare company provides commercial coverage, and you may have your own UM/UIM coverage as well. Knowing which policy applies — and how to layer them — can dramatically affect your recovery when the at-fault driver is uninsured or underinsured.

This article is part of our complete guide to UM/UIM claims in Illinois.

Rideshare Insurance Phases

Illinois law (625 ILCS 57/) requires rideshare companies to maintain insurance that varies depending on the driver’s status:

Phase 1 — App on, no ride request: The rideshare company provides lower coverage limits. UM/UIM coverage during this phase is limited.

Phase 2 — Ride accepted, en route to passenger: Higher commercial coverage applies, typically $1 million in liability and UM/UIM.

Phase 3 — Passenger in vehicle: Full commercial coverage applies, including $1 million UM/UIM. This is the phase where most passengers are involved in accidents.

How Rideshare UM/UIM Helps Passengers

If you are a passenger in an Uber or Lyft and a third-party driver with no insurance (or minimal coverage) causes a crash, the rideshare company’s Phase 3 UM/UIM coverage protects you up to $1 million. This is a significant source of recovery that many accident victims do not know about.

You can also file a UM/UIM claim on your own auto policy if you have one. Multiple UM/UIM policies may apply simultaneously, and your attorney should evaluate all available coverage to maximize your recovery.

Rideshare Drivers as Accident Victims

If you are a rideshare driver and an uninsured motorist hits you during a ride, you have multiple potential UM/UIM sources: the rideshare company’s commercial policy, your personal auto policy (if it covers rideshare activity — many standard policies exclude it), and potentially a rideshare-specific endorsement on your personal policy.

Frequently Asked Questions

Does Uber or Lyft carry UM/UIM coverage for passengers?

Yes. During Phase 3 (passenger in vehicle), rideshare companies provide up to $1 million in UM/UIM coverage in Illinois. This coverage applies when the at-fault driver is uninsured or underinsured.

Can I use both the rideshare company’s UM/UIM and my own auto policy?

Potentially. If you have your own auto policy with UM/UIM coverage, it may apply in addition to the rideshare company’s policy. However, setoff and coordination provisions may limit the total recovery. Consult an attorney to evaluate all available sources.

What if I am a rideshare driver hit by an uninsured motorist?

File claims on both the rideshare company’s commercial policy and your personal auto policy if applicable. Many personal auto policies exclude rideshare activity, so you may need a rideshare endorsement or a separate commercial policy for full protection.

Talk to a Peoria UM/UIM Attorney

Call (309) 672-9000 or contact us online for a free consultation. At Parker & Parker Attorneys at Law, we handle UM/UIM claims on a contingency fee basis — you pay nothing unless we recover compensation for you.

If you were injured by a driver without adequate insurance, the experienced Peoria personal injury lawyers can help you explore all available options.

Related Articles

• UM/UIM Claims After Pedestrian and Bicycle Accidents in Illinois
• Phantom Vehicle Claims Under Illinois Uninsured Motorist Coverage
• Underinsured Motorist Claims After a Truck Accident in Illinois
• UM/UIM Arbitration in Illinois: What to Expect
• How UM/UIM Coverage Works with Multiple Vehicles in Illinois