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NJ appeals court rules Lyft insurer must cover uninsured pedestrians
The decision, issued July 24, 2026, says New Jersey no-fault law requires PIP benefits for uninsured pedestrians injured by Lyft drivers, despite the insurer’s argument that ride-share rules exempt them.
A New Jersey appeals court has ruled that the liability insurance policy covering ride-share company Lyft must include personal injury protection, or PIP, benefits for an uninsured pedestrian’s medical bills when the injury involves a Lyft driver.
In its July 24, 2026 decision, the Superior Court of New Jersey, Appellate Division, held that state law requires every liability insurance policy on a motor vehicle to provide PIP benefits to pedestrians who are injured by the named insured’s vehicle, and that the TNC Act does not remove pedestrians from that requirement.
The case stemmed from an alleged pedestrian hit by a vehicle whose driver was working for Lyft, with coverage provided under a Liberty Mutual Insurance Company “Business Auto” policy issued to Lyft. Liberty Mutual denied the claim because the policy did not include PIP coverage for uninsured pedestrians and argued the TNC Act governed ride-share insurance.
The court rejected that position, noting that the TNC Act sets a minimum medical payments level of $10,000, but characterized that amount as intended for the driver rather than injured pedestrians. It also rejected the insurer’s argument that the driver was the “named insured,” finding Lyft was effectively treated as the named insured while the driver was logged in and carrying a passenger.