(732) 625-9494New Jersey Rideshare Law: The TNC Act Explained
New Jersey’s rideshare law is the Transportation Network Company Safety and Regulatory Act, P.L.2017, c.26, found at N.J.S.A. 39:5H-1 and following. It took effect May 1, 2017. It requires Uber, Lyft and any similar company to hold a state permit, screen drivers, carry tiered insurance that reaches $1.5 million during a ride, disclose insurance status after a crash, and give riders protections that ordinary motorists do not get, including an exemption from the verbal threshold. This page is the index to our law library. Each section links to a page that goes deeper. Questions about your own crash? Call (732) 625-9494 for a free case review.
The TNC Act in five points
- Uber and Lyft are “transportation network companies” (TNCs) and must hold a permit from the NJ Motor Vehicle Commission to operate in the state.
- Insurance is set in three tiers by app status: $50,000 / $100,000 / $25,000 while waiting, $1.5 million liability plus $1.5 million UM/UIM on a trip (N.J.S.A. 39:5H-10).
- Drivers must disclose their app status to anyone involved in a crash, and to police, on request (39:5H-10(h)).
- TNCs and their drivers cannot use the verbal threshold defense against riders on a prearranged trip (39:5H-10(j)).
- Drivers are screened with criminal and driving record checks, and the companies must enforce a zero-tolerance drug and alcohol policy.
What the Act covers
Before 2017, rideshare companies operated in New Jersey under a patchwork of local rules and their own insurance choices. The TNC Act created one statewide framework. It defines a TNC as a company that uses a digital network to connect riders with drivers who use personal vehicles for prearranged rides. Taxis, limousines and public transit are regulated separately and are not covered.
The Act sets rules in six areas: permits, driver screening, vehicle and conduct standards, rider disclosures, insurance, and records. For an injured person, the insurance and disclosure rules matter most, and that is where most of our library focuses.
Rider protections under the Act
The Act gives riders a set of protections that do not exist for an ordinary car trip. The ones that matter most after a crash:
- Guaranteed coverage on every ride. From the moment a driver accepts a request until the rider leaves the car, $1.5 million in liability coverage and $1.5 million in uninsured/underinsured motorist coverage must be in force (39:5H-10(c)). Insurance coverage explained.
- No verbal threshold. The company and the driver cannot argue that a rider’s injury is not permanent enough to recover pain and suffering (39:5H-10(j)). Why the verbal threshold does not apply.
- First-dollar coverage. If the driver’s personal policy lapses or excludes rideshare use, the TNC policy pays from the first dollar and defends the claim (39:5H-10(d)), and it cannot wait for a denial from the personal insurer first (39:5H-10(e)).
- Disclosure of app status. A driver involved in a crash must tell the other parties and police whether the app was on and whether a ride was in progress (39:5H-10(h)). What to ask at the scene.
- Know your driver. Before the trip, the app must show the rider the driver’s photo and the vehicle’s license plate, so you can confirm you are getting into the right car.
- Screened drivers. Criminal background and driving record checks are required, with disqualifying offenses, and the company must maintain a zero-tolerance policy for drugs and alcohol while a driver is logged in.
- A record of the trip. Riders get an electronic receipt, and the company must keep trip records for a set period. Those records are often the key evidence in a disputed claim.
The law library
Each page below takes one question and answers it with the statute, the cases and the practical steps. They are written for injured people, not lawyers, but every claim is sourced.
| Question | Short answer | Page |
|---|---|---|
| How much insurance must Uber and Lyft carry? | $50K/$100K/$25K while waiting; $1.5M liability and UM/UIM on a trip. | Insurance coverage in NJ |
| Who is liable in a rideshare crash? | The at-fault driver, the TNC’s insurer while the app is on, other drivers, and sometimes a public body or manufacturer. | Who is liable |
| Does the verbal threshold apply? | Not to riders on a prearranged trip. It may apply to drivers and other motorists. | Verbal threshold |
| Who pays my medical bills? | Your own PIP first; the TNC policy’s PIP if you have none; the striking vehicle’s policy for pedestrians. | PIP and medical bills |
| How long do I have to file? | Two years for injury; 90-day notice for public entities; two years from death for wrongful death. | Deadlines |
| What if I was partly at fault? | You recover if 50% or less at fault, reduced by your share. | Comparative fault |
| Can I sue Uber or Lyft? | You can sue the driver and third parties in court. Claims against the company may be sent to arbitration. | Arbitration |
| Is the law changing? | Bill S472 would cut UM/UIM from $1.5M to as low as $35,000. It is pending. | S472 tracker |
| Is Uber or Lyft different under NJ law? | No. The same statute and amounts apply to both. | Uber vs Lyft |
What the Act does not do
The Act does not make Uber or Lyft the employer of its drivers, and it does not make the company automatically liable for a driver’s negligence. It regulates the insurance that must be available, not who is at fault. It also does not override the arbitration clauses in the companies’ user agreements, which New Jersey courts have enforced against riders. And it does not cover food or package delivery, which a New Jersey court confirmed in 2022 (Malzberg v. Josey). Those gaps are why the pages on liability, arbitration and delivery driver accidents exist.
What changed in 2026, and what may change next
New Jersey’s personal auto minimums rose on January 1, 2026 to $35,000 per person and $70,000 per crash for bodily injury, and $25,000 for property damage, under P.L.2022, c.87 (see NJ DOBI Bulletin 25-06). That changes the “app off” tier for rideshare drivers, since their personal policy is the only coverage in that period. The rideshare tiers in 39:5H-10 did not change.
They may. Bill S472, introduced in the 2026-2027 legislative session and backed by Uber and Lyft, would cut the required uninsured and underinsured motorist coverage on a rideshare trip from $1.5 million to as low as $35,000. If it passes, a rider hit by an uninsured driver would have a small fraction of today’s protection. We track the bill on our S472 page.
How we use the Act in a case
Most insurers handling rideshare claims in New Jersey know the statute well and count on the injured person not knowing it. We cite 39:5H-10(d) and (e) when an adjuster tries to send a claim back to the driver’s personal insurer. We cite 39:5H-10(j) when an adjuster asks a passenger for proof of permanent injury. We use the disclosure duty in 39:5H-10(h) and the company’s own trip records to pin down the coverage tier. Scott D. Grossman has practiced New Jersey personal injury law since 1997. The firm has 12 offices across the state and handles rideshare cases statewide. Free case review, no fee unless we recover: (732) 625-9494.
Sources: P.L.2017, c.26 (N.J.S.A. 39:5H-1 et seq.) · N.J.S.A. 39:5H-10 · NJ DOBI Bulletin 25-06 · P.L.2022, c.87 · Malzberg v. Josey (N.J. App. Div. 2022) · NJ Senate Bill S472 (2026-2027 session).
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