KEY TAKEAWAYS:
In South Carolina, who pays after an Uber or Lyft crash depends on what the driver was doing the moment the wreck happened. App off, app on but waiting, or actively carrying a passenger—each phase triggers a different layer of insurance, with rideshare company coverage climbing as high as $1 million during active rides. Pinning down the right phase is often the difference between a personal auto policy with low limits and a corporate policy that can fully pay for your injuries.
You hailed a Lyft from Broadway at the Beach to your hotel, climbed into the back, and were three blocks down Kings Highway when an SUV ran a red light and slammed into the passenger door. Now you are in a Myrtle Beach ER with a broken collarbone, a concussion, and a question no one is rushing to answer: who actually pays for this? The driver? Lyft? The other driver? Your own insurance?
Rideshare wrecks look like ordinary car crashes from the outside, but the insurance picture is anything but ordinary. Our South Carolina car accident lawyers at Derrick Law Firm see this confusion every week, and the answer almost always comes back to one detail: what phase of the trip was the rideshare driver in when the crash happened?
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Why the Phase of the Trip Controls Coverage
Uber and Lyft both maintain tiered insurance policies that turn on and off depending on what their app shows at the moment of impact. South Carolina also requires Transportation Network Companies (TNCs) and their drivers to carry specific levels of coverage during each phase. Most personal auto policies, on the other hand, either exclude or limit coverage while the driver is logged into a rideshare app. That gap is exactly why the rideshare companies stepped in with layered coverage in the first place.
Three phases matter for any Uber or Lyft accident claim in South Carolina.
Phase 1: App Off (Personal Use Only)
When the rideshare driver is off the clock with the Uber or Lyft app closed, they are simply a private driver running personal errands. The crash is treated like any other South Carolina auto wreck.
- Coverage source: the driver's personal auto insurance policy.
- Rideshare contingent coverage: none. Uber and Lyft do not provide any insurance during this phase.
- Practical limit: South Carolina only requires $25,000 per person and $50,000 per accident in bodily injury liability. That is rarely enough to cover serious injuries.
If injuries exceed the driver's policy limits, the next available pots of money are usually your own underinsured motorist (UIM) coverage and any liability policy held by another at-fault driver.
Phase 2: App On, Waiting for a Ride Request
When the driver is logged into the app and available for rides but has not accepted a ride request, South Carolina law requires primary automobile liability coverage of at least $50,000 per person, $100,000 per accident, and $50,000 for property damage, plus uninsured motorist coverage required by South Carolina law. This coverage can be maintained by the driver, the TNC, or both. If the driver’s policy has lapsed or does not provide the required coverage, the TNC’s policy must provide coverage from the first dollar of the claim, and coverage cannot be made dependent on the personal insurer first denying the claim.
Because the driver's personal policy almost always excludes coverage while the app is active, this Phase 2 contingent policy usually becomes the primary source of recovery for injured pedestrians, cyclists, or other drivers hit by a rideshare driver who was waiting on a ping.
Phase 3: En Route to a Passenger or Actively Transporting
From the moment the driver accepts a ride request until the last requesting passenger exits the vehicle, South Carolina treats the driver as engaged in a “prearranged ride.” During that period, the law requires at least $1 million in primary automobile liability coverage for death, bodily injury, and property damage, plus uninsured motorist coverage required by South Carolina law.
This is the phase where injured passengers and other victims have the most insurance to work with. Whether the rideshare driver caused the crash or another motorist did, one or more applicable insurance policies may provide substantial coverage, including the TNC's required $1 million liability policy when applicable. The availability and amount of recovery depend on the facts of the collision, fault determinations, policy language, and other available insurance.
Phase Disputes
Because insurance coverage can vary dramatically depending on the driver's status at the time of the collision, disputes sometimes arise regarding whether the driver was offline, waiting for a ride request, or engaged in a prearranged ride. Insurers often review app data, GPS records, and trip logs to determine which coverage period applies and what insurance may be available. In some cases, even a small difference in timing can affect which insurance policy applies and how much coverage may be available.
Strong evidence locks the phase down. That usually includes the driver's app data, the official trip receipt, GPS pings, dashcam footage, photos of the rideshare placard, and witness statements from passengers who can confirm whether a ride was active at the time.
What This Means for Injured Passengers, Drivers, and Pedestrians
If you were riding in an Uber or Lyft when the crash happened, your claim will usually fall into Phase 3 because the driver had accepted a ride and was actively transporting you. Phase 3 typically opens the door to the rideshare company’s $1 million insurance policy, including liability coverage and, in many South Carolina cases, uninsured or underinsured motorist coverage. For an injured passenger with hospital bills, follow-up care, missed work, and long-term pain, that policy can make an enormous difference.
If you were hit by an Uber or Lyft driver while driving your own car, walking across the street, or riding a bicycle, the analysis is more complicated. You may not know whether the driver had the app off, was waiting for a ride request, or had already accepted a passenger. But that detail can completely change the value and direction of your claim. A driver who was using the vehicle for personal errands may only have a minimum personal auto policy. A driver logged into the app but waiting for a request may trigger a smaller contingent rideshare policy. A driver on the way to pick someone up or already carrying a passenger may trigger the $1 million commercial policy.
That is why you should not assume the first insurance company that contacts you is the only one responsible for paying. In many rideshare crashes, multiple policies may need to be reviewed, including the rideshare driver’s personal auto policy, Uber or Lyft’s contingent coverage, the rideshare company’s commercial policy, another at-fault driver’s insurance, and your own uninsured or underinsured motorist coverage. Sorting those policies out is not just paperwork. It can determine whether your claim is limited to a small policy or supported by coverage that can actually pay for the full harm you suffered.
Insurance adjusters know all of this. They know which phase pays the most, and they know which arguments could shrink the available coverage. Coverage disputes may arise regarding app activity, driver status, or the availability of electronic records. Resolving those issues often requires obtaining and reviewing app data, trip records, and other evidence.
If involved in a rideshare crash consider the need to preserve evidence quickly. Save screenshots of the ride, trip receipt, driver profile, route map, text messages, and payment confirmation. Take photos of the vehicles, license plates, rideshare decals, injuries, and crash scene. Get names and contact information for witnesses. If police respond, make sure the report notes whether Uber or Lyft was involved. The sooner the phase of the ride is documented, the harder it becomes for an insurer to push the claim into a lower-coverage category.
A South Carolina Uber or Lyft accident claim is not just about proving who caused the crash. It is also about proving what the rideshare driver was doing at the exact moment of impact. That one fact could control which insurance policy applies, how much coverage may be available, and how aggressively the insurers may fight the claim. A lawyer familiar with rideshare claims can help obtain relevant records, identify potentially applicable insurance policies, and advocate for an injured person's interests throughout the claims process.