Scenario: I picked up a rider in Manhattan (NY) going to Newark (NJ). We crashed on the NJ Turnpike. New York requires high liability limits ($1.25M for rideshare), but New Jersey limits are lower. I was worried that because the accident happened in NJ, the lower limits would apply, leaving me exposed to a lawsuit from the passenger.
Key Takeaways
- The “Origin” Rule: Generally, TNC insurance limits are determined by the state where the trip originated. If you start in a high-limit state (NY), those limits usually travel with you.
- The “Jurisdiction” Factor: However, if you are sued, the laws of the state where the accident happened (NJ) often dictate negligence and damages.
- Personal Policy Exclusion: Your personal rideshare endorsement usually has a “Territory” clause. It covers the US/Canada, but if you regularly drive in a state you don’t live in, they may deny coverage for “garaging misrepresentation.”
- Registration Risk: If you drive mostly in NJ but register the car in PA to save money, that is insurance fraud.
The “Why” (The Trap): Regulatory Patchwork
Every state has different “TNC Legislation.”
- State A might require $1M death benefit.
- State B might require $50k.
The trap is for drivers who live on borders (like Philly/NJ or Portland/Vancouver). If you spend 50% of your time in the neighboring state, your personal insurer might void your policy for not being garaged where you drive.
[IMAGE: Map showing a trip crossing a state line with different dollar signs ($) representing limits]
The Investigation: Cross-Border Coverage
I asked adjusters how they handle cross-border claims.
1. TNC Policy (Uber/Lyft)
- Verdict: They are national. They automatically adjust to meet the higher of the two requirements (Origin vs. Accident location) or statutory minimums. You are generally safe here regarding liability to the passenger.
2. Personal Endorsement (Period 1)
- Verdict: If you drop off in NJ and wait for a ride in NJ (Period 1), your NY personal policy should cover you, provided it’s “incidental” usage.
- The Risk: If you wait at Newark Airport for 4 hours every day, your NY insurer can claim you are effectively garaged in NJ and deny the claim.
Comparison Table: Limits by Location
| Scenario | Applicable Limit |
| Trip Starts NY -> Ends NJ | NY Limits (Higher) usually apply |
| Trip Starts NJ -> Ends NY | NJ Limits (Lower) usually apply |
| Waiting in Neighbor State | Personal Policy (Check Territory Clause) |
Step-by-Step Action Plan
- Check Your “Garaging” Address: Ensure your insurance matches where the car sleeps at night.
- Understand “Incidental” vs. “Regular”: Driving across the border for a drop-off is fine. Driving to the neighboring state every morning to work a full shift there is risky. Ask your agent: “Am I covered if 60% of my miles are in [Neighbor State]?”
- TLC Plates (NYC Specific): If you have TLC plates, you have commercial insurance that covers you everywhere. This concern is mostly for “Rideshare Endorsement” drivers in other states.
FAQ
Can I pick up passengers in another state?
Only if you are approved to drive there. For example, a NJ driver usually cannot pick up in NYC, but can pick up in other parts of NY state depending on regulations.
What about driving into Mexico/Canada?
Mexico: almost never covered. Canada: usually covered by personal policy, but TNC apps often don’t work across international borders.