Rideshare & Delivery App Crashes: Who’s Liable When Drivers Use Apps?

Rideshare & Delivery App Crashes: Who’s Liable When Drivers Use Apps?

Rideshare and delivery apps like Uber, Lyft, Grab, DoorDash, Uber Eats, and Lalamove have completely changed the way people travel and receive goods. But as these apps grow, so do the number of crashes involving their drivers. When a driver is distracted by an app, rushing to complete an order, or logged in but not actively on a job, liability becomes complicated. Victims often struggle to understand whose insurance applies and who is actually responsible for paying for injuries and damages.

This guide explains how rideshare accident liability works, what to do after a crash, and how victims can protect their rights. For additional accident-related guidance, you can explore our related resources such as What Is Product Liability? and What Is Premises Liability?.

Why Rideshare and Delivery App Accidents Are Different

Unlike regular car accidents, rideshare and delivery cases involve multiple parties, including:

• The driver
• The rideshare or delivery company
• The victim’s own insurance provider
• Commercial insurance policies

Liability depends heavily on what the driver was doing at the moment of the crash. Rideshare companies classify drivers as “independent contractors,” which allows them to shift or limit responsibility. This makes the insurance process more complex than a normal auto accident.

Image 1 – Insert Rideshare App Usage Image Here

Understanding the Three Rideshare Liability Periods

Every major rideshare company divides the driver’s activity into three key periods. These periods determine what insurance applies and how much coverage is available.

Period 0: Driver Not Logged In

If the app is off, the driver is considered to be using their personal vehicle for personal reasons. Only the driver’s personal insurance applies. If the driver causes a crash in this period, the rideshare company has zero responsibility.

Period 1: Driver Logged In, Waiting for a Ride Request

This is when most disputes occur. The driver is technically “working,” but hasn’t accepted a trip yet. Rideshare coverage usually includes:

• Liability coverage for third-party injuries and property damage
• Low to moderate coverage limits (varies by state or country)

However, collisions in Period 1 may still trigger arguments between insurers over who pays what. Personal insurers sometimes deny claims if they learn the driver was logged in to a commercial app.

Period 2 & 3: Driver Accepted a Ride or Is Transporting a Passenger

Once a trip is accepted, rideshare companies typically provide their highest insurance limits. These periods offer:

• Commercial liability insurance
• Uninsured/underinsured motorist coverage
• Contingent collision and comprehensive coverage

This makes it easier for victims to recover compensation, but claims still require strong evidence.

How Delivery App Accidents Differ

Delivery drivers often face even more complicated insurance structures. Some apps provide strict coverage, others provide none at all unless the driver pays extra. Many delivery drivers also juggle multiple apps at once, which makes identifying liability even more difficult.

Common delivery services involved in accident claims include:

• DoorDash
• Uber Eats
• GrabFood
• Lalamove
• Foodpanda

Because these drivers are always on the road and frequently distracted by app notifications, delivery crashes are becoming increasingly common.

Image 2 – Insert Insurance Coverage Comparison Image Here

Common Causes of Rideshare & Delivery App Crashes

Most accidents happen because the driver is multitasking. They may be looking at navigation, switching between apps, clicking through orders, or rushing to meet delivery times.

Typical causes include:

• App distraction (navigation, order alerts, rides requests)
• Speeding to complete more rides or deliveries
• Fatigue from working long hours
• Illegal parking or sudden stops
• Unfamiliar routes or unsafe U-turns

Who Can Be Held Liable in a Rideshare or Delivery Accident?

Depending on the situation, several parties may share liability:

1. The App Driver

If the driver was careless, distracted, or violated traffic laws, they can be held personally respons