Rideshare accidents come with a wrinkle most car crashes don't have: figuring out which insurance policy actually applies. Uber and Lyft carry different coverage depending on whether the driver's app is off, on, and waiting for a ride, or actively carrying a passenger. South Carolina's rules for transportation network companies add another layer of complexity on top of that. Knowing which phase applies can change everything about your claim.
For Mount Pleasant residents relying on rideshares to navigate busy roads like US-17 and I-526, understanding this coverage matters more than it might seem. It can be the difference between getting your medical bills, lost wages, and repairs paid or hitting a wall of confusion. This guide breaks down how the insurance stacks up in each scenario and what to do after a crash.
In an ordinary crash, you look to the at-fault driver's auto policy. Rideshare crashes add a layer, because Uber and Lyft provide coverage that switches on and off with the driver's app activity. In South Carolina, this tiered structure is set by law: the Transportation Network Company Act, S.C. Code § 58-23-1610 et seq., requires Uber, Lyft, and similar companies to maintain specific levels of insurance depending on what the driver was doing at the time of the crash.
The same driver can be covered by three very different arrangements within a single shift. Establishing which phase was active at the time of the crash is the first practical step in any rideshare claim.
That is why details like trip logs and app records matter. They show exactly what the driver was doing when the crash happened, which determines the coverage available.
When the rideshare app is off, the driver is treated like any other motorist. Their personal auto insurance applies, and the rideshare company's coverage does not come into play.
In South Carolina, that personal policy must meet the state minimum of 25/50/25 under S.C. Code 38-77-140. If the driver carries only the minimum, available coverage can be limited, which makes uninsured and underinsured motorist coverage worth checking.
Once the driver turns the app on and is waiting for a ride request, South Carolina's TNC Act requires primary liability coverage of at least $50,000 per person, $100,000 per accident, and $50,000 in property damage. That's a meaningful step up from a bare-minimum personal policy, but it's a fraction of the coverage available once a ride is active.
This phase produces disputes because the driver is available but not yet matched with a rider. Confirming the app was on and in this waiting state is what unlocks this coverage tier.
The highest coverage applies once a driver accepts a ride and is on the way to the rider or has a passenger in the car. Under S.C. Code § 58-23-1610 et seq., a one million dollar commercial liability policy applies during this phase.
For a passenger injured during a trip, this is usually the coverage that matters most. It is also why a passenger's claim can look very different from a claim by someone hit during phase one, even when the crash itself looks similar.
No matter which phase applies, South Carolina's fault rule still governs. Under S.C. Code 15-38-15, you can recover if your share of the fault is 50% or less, with your recovery reduced by your percentage.
That rule applies to passengers, other drivers, and pedestrians alike. Sorting out the fault and the right coverage phase together is what moves a rideshare claim forward.
South Carolina requires every auto policy to include uninsured motorist coverage at the same 25/50/25 limits, and that coverage cannot be waived under S.C. Code 38-77-150. This matters in rideshare cases when a phase-one driver carries only the minimum or when another at-fault driver has no insurance.
Uninsured and underinsured coverage can come from more than one policy, depending on the facts, including a passenger's own auto policy. Identifying every policy that might respond is part of building the claim, because the right coverage is not always the most obvious one.
Trip records, app data, and the driver's status at the moment of impact are the building blocks of a rideshare claim, and some of that information sits with the rideshare company. A prompt request to preserve it keeps the key proof from being lost.
The same urgency applies to medical documentation. Tying your injuries to the crash with clear records from the start strengthens the claim against whichever policy ultimately applies.
| App status | Coverage that generally applies |
|---|---|
| App off | Driver's personal auto policy (25/50/25 minimum) |
| App on, waiting | $50,000/$100,000/$50,000 primary liability under S.C. Code § 58-23-1610 et seq. |
| En route or passenger aboard | $1 million commercial liability policy under S.C. Code § 58-23-1610 et seq. |
It depends on what the driver was doing at the time. Coverage shifts across three phases tied to whether the app was off, on, or carrying a ride.
App off, app on and waiting for a ride, and en route or carrying a passenger. These phases are set by South Carolina's Transportation Network Company Act (S.C. Code § 58-23-1610 et seq.). Coverage starts with the driver's personal policy when the app is off, rises to $50,000/$100,000/$50,000 while waiting for a ride, and reaches $1 million once a ride is accepted or underway.
If the app was off, the driver's personal auto policy typically applies, just like any ordinary car accident.
When a driver is on the way to or carrying a passenger, a one-million-dollar commercial liability policy generally applies.
Yes. Injured passengers can pursue a claim, and the applicable coverage depends on the driver's app status at the time of the crash.
The general personal injury deadline in South Carolina is three years from the date of the crash under S.C. Code 15-3-530.
Rideshare claims hinge on proving the driver's app status and matching it to the right policy.
The Arndt Law Firm helps injured passengers, drivers, and pedestrians in Mount Pleasant and across Charleston County do exactly that and also serves clients who need a South Carolina rideshare accident attorney statewide.
Reach out through our contact page or call us at (843) 273-8149 to get started.
Last reviewed: July 2026
This post was reviewed by Jonathan S. Arndt, licensed in South Carolina since 2018.
Disclaimer: This article is for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship with The Arndt Law Firm. Every case is different; for advice about your situation, speak with a licensed attorney.
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