As rideshare services like Uber and Lyft become essential transportation options for millions of New Jersey residents, understanding your rights as a passenger has never been more important. According to a CDC study, each additional 100 rideshare trips in a given area increases the odds of observing injury crashes by 4.6%. With this increased risk comes the need for clear legal protections.
If you’ve been injured as a rideshare passenger in New Jersey, you have specific rights under state law that differ significantly from typical car accident cases. Attorney Scott Grossman of Grossman Law Rideshare Accident Attorneys has over 20 years of experience helping New Jersey injury victims navigate these complex cases. As a Super Lawyers recognized attorney who has recovered millions in settlements and verdicts, Scott understands the unique challenges rideshare passengers face when seeking compensation.
Your Rights as a Rideshare Passenger in New Jersey
New Jersey’s Transportation Network Company Safety and Regulatory Act provides strong protections for rideshare passengers. When you’re injured while riding in an Uber or Lyft, you have access to substantially higher insurance coverage than most car accident victims.
Enhanced Insurance Protection
During an active ride (when you’re being transported or the driver is heading to pick you up), rideshare companies must provide $1.5 million in liability coverage. This includes:
- $1.5 million for death, bodily injury, and property damage
- $1.5 million in uninsured/underinsured motorist coverage
- $10,000 in medical payment benefits for the driver
This coverage is significantly higher than New Jersey’s minimum insurance requirements, giving you better options for recovery than most accident victims.
Special Legal Advantages
As a rideshare passenger, you enjoy unique legal protections under New Jersey law. Most importantly, the state’s “limitation on lawsuit” threshold does not apply when you’re injured by a rideshare driver. This means you can sue for pain and suffering damages even with minor injuries, without having to prove permanent injury.
Normally, New Jersey drivers must choose between “verbal threshold” or “no limitation on lawsuit” insurance. The verbal threshold restricts lawsuits for pain and suffering unless you have serious injuries like death, dismemberment, or permanent injury. As a rideshare passenger, these restrictions don’t apply to you.
Protection from Multiple Scenarios
Your rights as a passenger remain strong whether:
- Your rideshare driver caused the accident
- Another driver hit your rideshare vehicle
- You were a pedestrian struck by a rideshare driver
- The accident involved multiple vehicles
When You Can Sue vs. Forced Arbitration
One of the biggest challenges facing rideshare passengers today involves arbitration clauses in user agreements. Recent New Jersey court cases have shown that clicking “agree” on rideshare apps can waive your right to sue in court.
The McGinty v. Uber Case
In September 2024, a New Jersey appeals court ruled that passengers who agreed to Uber’s terms of service must resolve their disputes through arbitration, not in court. The case involved a couple severely injured in an Uber crash, but the court found they had waived their jury trial rights when agreeing to Uber’s terms.
Significantly, this ruling applied even though the couple’s minor daughter had clicked “agree” on their phone while ordering Uber Eats. The court found that the mother had previously agreed to arbitration terms when she first signed up for Uber in 2015.
What You Can Still Sue For
Even with arbitration clauses, you can still file lawsuits against:
The rideshare driver individually: Drivers are independent contractors who can be sued for negligence regardless of arbitration agreements with Uber or Lyft.
Other at-fault drivers: If another driver caused your accident, you can sue them directly.
Property owners: For unsafe road conditions or premises liability issues.
Product manufacturers: If a vehicle defect contributed to your accident.
Fighting Arbitration Enforcement
Pennsylvania courts have taken a different approach. In the Chilutti v. Uber case, a Pennsylvania court found Uber’s arbitration clause unenforceable because passengers never actually clicked on, viewed, or read the terms. New Jersey law may evolve similarly as more cases challenge these agreements.
Scott Grossman has extensive experience analyzing arbitration clauses and identifying when they may not be enforceable. As a former New Jersey State Probation Officer who served on the Board of Governors of the New Jersey Association for Justice, Scott brings unique insights to challenging unfair arbitration provisions.
Medical Bill Coverage Under New Jersey’s PIP System
Understanding how your medical bills get paid after a rideshare accident is crucial for protecting your financial interests. New Jersey’s no-fault insurance system affects rideshare passengers differently than other accident victims.
Primary Coverage Sources
Your own PIP insurance pays first: Even as a passenger in someone else’s vehicle, your own auto insurance PIP (Personal Injury Protection) coverage is primary.
Family member’s PIP coverage: If you don’t own a car, you can use PIP coverage from a family member you live with.
Driver’s personal insurance: May apply if no other PIP coverage is available, though rideshare drivers often have commercial use exclusions.
Safety net programs: The New Jersey Property-liability Insurance Guaranty Association (NJPLIGA) may help if no other coverage is available.
Coverage During Different Ride Phases
The amount and type of coverage depends on what the driver was doing when the accident occurred:
Phase 1 – Driver logged in, waiting for rides: $50,000 per person/$100,000 per accident for injuries, $25,000 for property damage.
Phase 2 – Driver heading to pick you up: $1.5 million in coverage begins.
Phase 3 – You’re in the vehicle: Full $1.5 million coverage plus $10,000 medical payment benefits.
PIP Coverage Limits
New Jersey’s PIP coverage varies by policy, from a minimum of $15,000 to $250,000. According to data from the New Jersey Department of Transportation, the state processes over 320,000 crash reports annually, making adequate PIP coverage essential.
Pain and Suffering Claims
Rideshare passengers have significant advantages when claiming pain and suffering damages compared to other New Jersey accident victims. The state’s limitation on lawsuit provisions do not apply to passengers injured by rideshare drivers.
No Verbal Threshold Limitations
Typically, New Jersey accident victims must overcome the “verbal threshold” to sue for pain and suffering. This requires proving injuries such as:
- Death or dismemberment
- Significant scarring
- Displaced fractures
- Permanent injury shown by medical evidence
As a rideshare passenger, you can seek pain and suffering compensation even with minor injuries. This protection applies whether your rideshare driver or another driver caused the accident.
Types of Pain and Suffering Damages
Your compensation can include:
- Physical pain from injuries
- Emotional distress and anxiety
- Loss of enjoyment of life activities
- Mental anguish from trauma
- Impact on family relationships
Substantial Insurance Coverage
The $1.5 million coverage requirement provides meaningful protection for pain and suffering claims. Unlike many car accident cases where defendants have minimal insurance, rideshare accidents offer real potential for full compensation.
Wrongful Death Cases
When a rideshare accident results in death, family members may pursue wrongful death claims under New Jersey law. The available coverage and potential recovery depend heavily on the driver’s status at the time of the accident.
Coverage Varies by Driver Activity
Driver not logged into app: Only the driver’s personal insurance applies, potentially as low as $25,000.
Driver logged in, waiting for rides: Up to $50,000 in coverage.
Driver with passenger or heading to pickup: $1.5 million in coverage.
The difference between $25,000 and $1.5 million can be life-changing for grieving families. This is why immediate investigation of the driver’s app status is crucial.
New Jersey Wrongful Death Damages
Under New Jersey law, wrongful death compensation can include:
- Medical expenses before death
- Funeral and burial costs
- Lost income the deceased would have earned
- Loss of services and companionship
- Pain and suffering before death
- Punitive damages in cases of extreme negligence
Statute of Limitations
Families of rideshare accident victims have two years from the date of death to file wrongful death lawsuits. Missing this deadline can forever bar recovery.
Steps to Take After a Rideshare Accident
Taking the right steps immediately after a rideshare accident protects both your health and legal rights. Here’s what every passenger should do:
Immediate Safety Actions
- Get medical help first – Call 911 if anyone is injured
- Move to safety – Get out of traffic if possible
- Call police – Always file an official police report
- Don’t admit fault – Stick to facts about what happened
Document the Scene
- Take photos of all vehicle damage
- Photograph the accident scene and road conditions
- Get contact information from all drivers involved
- Collect witness names and phone numbers
- Note weather conditions and time of day
Report Through the App
Immediately report the accident through the Uber or Lyft app. This creates an official record and starts the insurance claim process. The rideshare company may try to contact you for a statement.
Important: Don’t provide detailed statements to rideshare insurers without legal representation. What you say can be used to minimize your claim.
Seek Medical Attention
Even if you feel fine, see a doctor as soon as possible. Some injuries, particularly soft tissue injuries, don’t show symptoms immediately. Having medical documentation from right after the accident strengthens your case.
Preserve Evidence
- Keep all medical bills and treatment records
- Save receipts for accident-related expenses
- Document lost wages if you can’t work
- Start a daily journal noting pain levels and difficulties
- Take photos of visible injuries as they heal
Contact an Experienced Attorney
Rideshare accidents involve complex insurance coverage issues and multiple parties. Having an attorney who understands these cases can mean the difference between minimal compensation and full recovery.
Understanding Complex Coverage Scenarios
Real-world rideshare accidents often involve complicated insurance coverage issues. Here are common scenarios and how coverage applies:
Passenger Injured During Active Ride
When you’re injured while being transported or your driver is heading to pick you up, the rideshare company’s $1.5 million policy is in effect. You would use your own PIP coverage for immediate medical bills, then pursue bodily injury claims against at-fault parties and underinsured motorist claims with the rideshare company.
Driver Injured During Active Ride
Rideshare drivers can access $10,000 in medical payment coverage through the rideshare company’s insurance. They can also pursue bodily injury and underinsured motorist claims similar to passengers.
Driver Logged In But Not on a Trip
When drivers are waiting for ride requests, they have $50,000 per person/$100,000 per accident coverage for injuries and $25,000 for property damage. This lower coverage level makes early settlement offers particularly important to evaluate carefully.
Multiple Vehicle Accidents
When rideshare accidents involve multiple vehicles, determining which insurance applies can be complex. You may have claims against several insurance policies, making experienced legal representation essential.
Recent Changes in New Jersey Rideshare Laws
New Jersey continues to update its rideshare regulations to better protect passengers and drivers. Recent changes include:
Enhanced Background Checks
All Uber and Lyft drivers in New Jersey must undergo extensive background checks, including criminal background and driving record reviews. These checks help identify potentially dangerous drivers before they can transport passengers.
Required Vehicle Inspections
Rideshare vehicles must meet safety standards through regular inspections. This helps ensure passengers ride in safe, well-maintained vehicles.
Mandatory Insurance Disclosures
Rideshare companies must clearly disclose their insurance coverage to drivers and passengers. This transparency helps people understand their rights and coverage options.
Why Choose Grossman Law Rideshare Accident Attorneys
When you’re injured as a rideshare passenger, you need attorneys who understand both the complex insurance laws and the tactics rideshare companies use to minimize claims. Grossman Law Rideshare Accident Attorneys brings unique advantages to your case:
Proven Track Record
Attorney Scott Grossman has recovered millions in settlements and verdicts for New Jersey injury victims over more than 20 years. Recent client reviews highlight six-figure settlements and successful outcomes against major insurance companies like Allstate and Geico.
Deep Legal Knowledge
Scott’s background includes:
- Juris Doctor from Quinnipiac University School of Law
- Master’s degree in Political Science from Rutgers University
- Former New Jersey State Probation Officer experience
- Long-standing member and former Board of Governors member of the New Jersey Association for Justice
- Super Lawyers recognition from 2022-2025
Client-Focused Approach
The firm’s philosophy centers on treating each client as an individual, not just another file. As one client noted: “Attorney Grossman fought tirelessly on my behalf and even when the case is already closed they still keep in contact.”
Media Recognition
Scott has been interviewed by News 12 New Jersey and My9 News for his expertise in New Jersey personal injury law, demonstrating his recognized authority in this field.
Understanding of Rideshare Industry
With the rise of rideshare services, Scott has developed specific expertise in the unique legal issues these cases present. He understands how rideshare insurance works, when arbitration clauses apply, and how to maximize recovery for injured passengers.
Contact New Jersey’s Top-Rated Rideshare Passenger Rights Attorneys
If you’ve been injured as a rideshare passenger in New Jersey, don’t face the insurance companies alone. Grossman Law Rideshare Accident Attorneys has the experience and track record to help you get the compensation you deserve.
Our firm has helped thousands of New Jersey injury victims over the past two decades, recovering millions in settlements and verdicts. We understand the complex laws governing rideshare passenger rights and will fight to protect your interests.
Why clients choose Grossman Law:
- Over 20 years of personal injury experience
- Millions recovered in settlements and verdicts
- Super Lawyers recognition 2022-2025
- Former Board of Governors member, New Jersey Association for Justice
- No fee unless you win your case
- Free consultation for all injury cases
Don’t let rideshare companies or their insurers take advantage of you. Contact Grossman Law Rideshare Accident Attorneys today for your free consultation.
Call (732) 625-9494 or contact us online for your free case evaluation.
Serving clients throughout New Jersey including Monmouth County, Middlesex County, Ocean County, Passaic County, Camden County, and Mercer County.