Jan272026
Wrongful Death

What happens if the at-fault driver’s personal auto insurer denies coverage because they were doing rideshare work? – North Carolina

Short Answer

In North Carolina, a personal auto insurer can deny coverage if the crash happened while the driver was logged into a rideshare app or providing rideshare service. When that happens, the claim often shifts to the rideshare company’s required insurance coverage for that time period. If there is still a true coverage gap or dispute, the crash may be treated like an uninsured motor vehicle situation for certain purposes, which can open the door to uninsured/underinsured motorist (UM/UIM) options under another applicable policy.

Understanding the Problem

In a North Carolina wrongful death case, can a third-party claim still move forward when the at-fault driver’s personal auto insurer denies coverage because the driver was doing rideshare work at the time of the crash? The decision point is whether the driver was logged on to a transportation network company (TNC) platform or actively providing TNC service when the collision happened, because that timing can shift which insurance policy is responsible. The practical issue is identifying the correct insurer and coverage limits so the claim can be presented to the right carrier without losing time.

Apply the Law

North Carolina has a specific statute that addresses insurance coverage for transportation network companies (rideshare). It allows personal auto insurers to exclude coverage during rideshare activity, but it also requires primary coverage to exist during defined “app on” and “trip” periods. The key is matching the crash to the correct rideshare “period” and then pursuing the insurer that must provide primary liability coverage for that period.

Key Requirements

  • Rideshare status at the time of the crash: Coverage depends on whether the driver was (a) logged into the app but not yet on a trip, or (b) actively providing rideshare service (for example, en route to pick up a passenger or transporting a passenger).
  • Primary policy identification: The responsible policy may be the driver’s rideshare endorsement/policy, the rideshare company’s policy, or a combination—depending on what exists and whether the driver’s coverage applies.
  • Proof and timing records: The parties and insurers typically focus on objective data (log-on/log-off times and trip status) to confirm which coverage applies.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the insurance carrier issued a denial stating the at-fault vehicle was operating as a rideshare or similar service. Under North Carolina law, that denial may be consistent with a permitted rideshare exclusion in the driver’s personal auto policy. The next step is usually to identify the transportation network company coverage (or the driver’s rideshare-specific coverage) that must provide primary liability coverage for the applicable rideshare period and present the claim to that carrier.

Process & Timing

  1. Who files: The claimant (or, in a wrongful death case, typically the personal representative of the estate) through counsel. Where: With the rideshare insurer/claims administrator and, if needed, in the North Carolina Superior Court for the county with proper venue. What: A written demand/claim package plus a request for coverage information and the driver’s rideshare status data (log-on/log-off and trip status). When: As soon as the denial is received, because coverage and liability investigations take time.
  2. Confirm the rideshare “period”: Request the precise times the driver was logged on/off and whether the driver was providing TNC service around the crash. North Carolina law contemplates exchanging this information during a coverage investigation.
  3. Preserve alternative paths: If the rideshare carrier disputes coverage or delays a decision, evaluate whether the situation triggers UM/UIM under another applicable policy and whether a lawsuit is needed to protect deadlines and force clarity on coverage.

Exceptions & Pitfalls

  • “Logged on” vs. “on a trip” matters: North Carolina requires different minimum coverage depending on whether the driver was merely logged into the app or actively providing TNC service, so small timing details can change the available limits.
  • Assuming the personal auto denial ends the case: A personal policy denial often just means the claim must be redirected to the rideshare coverage required by law.
  • Not requesting rideshare status records early: Coverage disputes frequently turn on app data. Delays in obtaining and preserving those records can slow the claim and create avoidable fights about what the driver was doing.
  • UM/UIM notice traps: If the denial effectively makes the at-fault vehicle “uninsured” for purposes of UM, North Carolina UM/UIM procedures and notice requirements can become important quickly under the applicable policy and statute.

Conclusion

In North Carolina, a personal auto insurer may deny coverage if the at-fault driver was logged into a rideshare app or providing rideshare service, because state law allows that exclusion. When that happens, the claim usually shifts to the primary rideshare coverage required for the driver’s status at the time of the crash, and a denial can also affect UM/UIM options under another policy. The most important next step is to request the driver’s app status records and submit the claim to the correct rideshare insurer promptly.

Talk to a Wrongful Death Attorney

If a carrier denied coverage because the at-fault driver was doing rideshare work, our firm has experienced attorneys who can help sort out which policy should apply, request the right records, and track the timelines that still control the case. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Wrongful Death

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.