If you live outside California and have a dispute with Lyft, you would need to engage California law and potentially travel to San Francisco to litigate, which is burdensome for most users.
Lyft's terms significantly limit your legal rights by requiring individual arbitration and waiving your right to participate in class action lawsuits. Lyft caps its financial liability to the amount you paid in the 12 months prior to any incident, which may leave you undercompensated if something goes seriously wrong. You can opt out of the mandatory arbitration clause by sending written notice to Lyft within 30 days of first accepting these terms.