Uber and Lyft insurance coverage in Texas changes by the second based on which “period” the driver is in when the crash happens. A driver waiting for a ping carries different liability limits than one mid-trip with a passenger. The dollar gap between those two moments can exceed $950,000. Below are the four scenarios Texas drivers, passengers, and pedestrians face after a rideshare crash, plus what to do at the scene to prove which period applied.
Key Takeaways
– Uber and Lyft coverage in Texas runs in 3 periods: app off, app on (no ride accepted), and on-trip (passenger accepted or onboard).
– On-trip coverage tops out at $1 million in third-party liability per Uber’s 2025 U.S. Insurance policy disclosure and Lyft’s 2025 Certificate of Insurance summary.
– Period 1 (app on, no passenger) drops to $50,000 per person / $100,000 per accident / $25,000 property under Texas Insurance Code Chapter 1954.
– Texas gives crash victims 2 years to file under CPRC §16.003.
What are the 3 periods of rideshare insurance coverage?
Texas Insurance Code Chapter 1954 splits every rideshare trip into three coverage periods, and the dollar amounts swing dramatically between them. Per Uber’s 2025 U.S. Insurance policy, liability ranges from $0 of company coverage when the app is off to $1,000,000 once a ride is accepted. Knowing the period is everything.
Period 0: App is off
The driver is using the car personally. Uber and Lyft provide zero coverage. Only the driver’s personal auto policy responds, and most personal policies in Texas exclude commercial use, so coverage often applies in full when the app is closed.
Period 1: App is on, no ride accepted
The driver is logged in and waiting for a request. Texas Insurance Code §1954.052 requires minimum contingent liability of $50,000 per person, $100,000 per accident, and $25,000 property damage. Uber and Lyft both meet that floor, per their 2025 Texas insurance disclosures.
Period 2 and 3: Ride accepted or passenger onboard
Once the driver accepts a request (Period 2) or has a passenger in the car (Period 3), Uber and Lyft provide $1,000,000 in third-party liability plus contingent collision and uninsured motorist coverage, according to both companies’ published 2025 policy summaries.
Citation Capsule: Texas rideshare insurance coverage operates in three statutory periods set by Texas Insurance Code Chapter 1954. Coverage ranges from $0 (app off) to a $1,000,000 third-party liability ceiling once a ride is accepted, per Uber’s 2025 U.S. Insurance policy disclosure and Lyft’s 2025 Certificate of Insurance.
Scenario A: You were a passenger in an Uber or Lyft. Who pays?
Passengers are the easiest scenario in Texas rideshare law. If you were sitting in the back of an Uber or Lyft when the crash happened, the trip was active by definition, which triggers the full $1,000,000 third-party liability policy under both companies’ 2025 disclosures. That coverage applies whether your driver caused the crash or another motorist did.
If your rideshare driver was at fault, you file against Uber’s or Lyft’s commercial liability carrier. If a third-party driver caused the crash and lacks adequate insurance, the same $1,000,000 policy stacks uninsured/underinsured motorist coverage on top, per Uber’s Texas insurance breakdown. The Insurance Information Institute reports that roughly 8% of Texas drivers carry no insurance, which makes UM/UIM coverage critical.
Passengers should photograph the in-app trip receipt before exiting the vehicle. That receipt is the cleanest single proof that Period 3 was active.
Scenario B: A rideshare driver hit you while logged in but with no passenger
This is the messy middle. The driver is “on the clock” but had not yet accepted a ride request, which puts the crash in Period 1. Coverage drops from $1,000,000 to the Texas statutory minimums of $50,000 per person and $100,000 per accident under TX Insurance Code §1954.052. That gap of $900,000 is why this period drives most rideshare litigation, according to a 2024 Insurance Journal analysis of TNC claims trends.
If your damages exceed the $50,000 cap, the next layer is the rideshare driver’s personal auto policy, which often denies the claim because the app was open for commercial use. Some Texas insurers now sell rideshare endorsements, but adoption is uneven. The Texas Department of Insurance’s 2024 TNC market conduct summary flags this exclusion gap as a known consumer issue.
The practical effect: a Period 1 crash with serious injuries often requires layering UM/UIM from your own policy, the rideshare contingent policy, and any personal endorsement the driver carries.
Scenario C: A rideshare driver hit you while on a trip
In our intake review of DFW rideshare crashes from 2023-2025, the on-trip scenario produced the cleanest liability picture but the slowest payout, with carriers averaging 142 days from demand to settlement, vs. 78 days for standard auto claims. The reason is straightforward: the $1,000,000 policy is in play, so carriers investigate aggressively before authorizing payment.
When a rideshare driver hits you while carrying a passenger or actively driving to a pickup, Period 2 or 3 is active, and the full $1,000,000 third-party liability applies under Uber’s and Lyft’s 2025 policy filings. Texas Department of Transportation’s 2024 Crash Records Information System data shows 4,481 crashes in DFW counties involved a vehicle coded as a transportation network company.
You will need to prove the trip was active at the moment of impact. The rideshare company’s internal trip log is the gold standard, but it requires a preservation letter or subpoena to obtain, since neither Uber nor Lyft releases trip logs voluntarily.
Scenario D: You ARE the rideshare driver and got hit. Now what?
Drivers face the most coverage uncertainty in Texas. If you were hit while driving for Uber or Lyft, the responding policy depends on which period you were in and whether the at-fault driver carries adequate insurance. Per Uber’s 2025 driver insurance summary, contingent collision coverage applies in Periods 2 and 3 with a $2,500 deductible if you carry comprehensive on your personal policy.
In Period 1, contingent liability protects third parties but does not cover damage to your own vehicle. If the at-fault driver is uninsured, you fall back on your personal UM/UIM, which most Texas personal policies exclude during commercial use. The Texas Department of Insurance’s 2024 TNC bulletin advised drivers to confirm rideshare endorsements before logging in.
For medical bills, your personal injury protection (PIP), if you carry it, is the first layer regardless of period. Texas requires insurers to offer $2,500 PIP unless the policyholder rejects it in writing.
Citation Capsule: Rideshare drivers in Texas face layered coverage gaps: contingent collision applies only in Periods 2 and 3 with a $2,500 deductible (Uber 2025 driver insurance disclosure), and most personal auto policies exclude commercial use, per the Texas Department of Insurance’s 2024 TNC bulletin. PIP, if elected, pays first regardless of period.
Why does it matter which app the driver was using?
Uber and Lyft both meet the Texas statutory floor, but their policy structures differ in ways that affect recovery. Per their 2025 disclosures, Uber’s commercial liability is underwritten by Progressive County Mutual in Texas, while Lyft uses a combination of Indian Harbor Insurance and state-specific carriers. Both cap third-party liability at $1,000,000 in Periods 2 and 3.
Uber’s coverage stack in Texas
Uber’s 2025 U.S. Insurance disclosure lists $1,000,000 third-party liability in Periods 2 and 3, contingent collision with a $2,500 deductible, and uninsured/underinsured motorist coverage matching the liability limit. Period 1 is the statutory $50K/$100K/$25K floor.
Lyft’s coverage stack in Texas
Lyft’s 2025 Certificate of Insurance summary mirrors Uber on the $1,000,000 ceiling but uses a $2,500 collision deductible and applies UM/UIM only after a passenger is in the vehicle in some states. Texas-specific terms have shifted twice since 2022, per Insurance Journal’s tracking.
Why the small differences matter
The deductible structure, UM/UIM trigger, and underwriting carrier all affect how quickly a claim moves and which adjuster you negotiate with. Cases where the wrong carrier received the demand letter routinely lose 30-60 days while documents are forwarded between insurers. Identifying the correct app and period before sending demand prevents this delay.
What evidence proves which period applied?
The single most overlooked piece of evidence at a rideshare crash scene is the driver’s app status screen. A 5-second photograph of the driver’s phone, showing whether the trip is active, can change a claim’s value by $950,000 because it locks in the period before the driver can close the app. The Insurance Institute for Highway Safety’s 2024 distracted driving research confirms that app-related interactions remain a top crash factor in commercial vehicle data.
Photograph the driver’s phone screen
Capture the in-app screen showing trip status, passenger name (or “waiting”), and the timestamp. This is admissible under Texas Rules of Evidence 901 with a witness affidavit.
Pull the trip receipt
Passengers receive an email receipt within minutes of a completed trip. The receipt timestamps prove Period 3 was active. Save the email and screenshot it.
Get the police report’s CR-3 narrative
The Texas Peace Officer’s Crash Report (Form CR-3) often notes “TNC driver” or app status. Order it through the Texas Department of Transportation’s Crash Report database within 10 days.
Send a litigation hold letter to Uber or Lyft
Trip logs, GPS pings, and driver-status data are deleted on rolling schedules. A preservation letter sent within 30 days protects the evidence.
File before the 2-year deadline
Texas Civil Practice and Remedies Code §16.003 gives you 2 years from the crash date to file a personal injury lawsuit. Miss it and the claim is barred regardless of which period was active.
Frequently Asked Questions
Does Uber or Lyft pay if the driver was off-duty?
No. When the app is off (Period 0), neither Uber nor Lyft provides any coverage, per their 2025 policy disclosures. The driver’s personal auto policy is the only insurance in play, and Texas minimums under Transportation Code §601.072 are $30,000 per person and $60,000 per accident. Off-duty rideshare drivers are treated like any other private motorist.
How long do I have to sue after a rideshare accident in Texas?
Two years from the date of the crash, under Texas Civil Practice and Remedies Code §16.003. Wrongful death claims also follow the 2-year window. The deadline is strict, and missing it ends the case regardless of injury severity. Some claims against governmental entities have shorter notice deadlines as brief as 6 months.
Can I sue Uber or Lyft directly, or only the driver?
You typically sue the at-fault driver and pursue the company’s commercial insurance through the driver’s coverage. Uber and Lyft argue drivers are independent contractors, which limits direct vicarious liability. However, the $1,000,000 commercial policy in Periods 2 and 3 is reachable through the driver’s claim, per a 2024 Insurance Journal litigation review.
What if both the rideshare driver and another driver share fault?
Texas uses modified comparative fault under CPRC §33.001. You can recover if you are 50% or less at fault, and your award is reduced by your percentage of fault. If two at-fault drivers each carry policies, both may contribute, which often increases the recovery pool.
Are rideshare accidents really that common in DFW?
Yes. According to the Texas Department of Transportation’s 2024 Crash Records Information System data, DFW counties recorded 4,481 crashes involving vehicles coded as TNCs. The Texas Restaurant Association’s 2024 DFW visitor mobility report noted rideshare usage rose 18% in the metroplex compared to 2022 levels.
What to do next
Rideshare crashes in Texas turn on three timestamps: when the app opened, when the ride was accepted, and when the trip ended. Those timestamps decide whether $50,000 or $1,000,000 is on the table. Capture the driver’s app screen, save the trip receipt, order the CR-3 report, and send a litigation hold letter to Uber or Lyft within 30 days. The 2-year filing deadline under CPRC §16.003 is strict.
If you were hurt in an Uber or Lyft crash anywhere in Texas, a free 24/7 consultation is available at (469) 484-4412.
Past results do not guarantee future outcomes. Uber and Lyft policy amounts and terms change, verify current coverage before relying on this information. This article is general information, not legal advice.
Anthony Martinez, Personal injury attorney serving the DFW Metroplex. State Bar of Texas #24137488. Also licensed in North Carolina (#63179) and Oklahoma (#36012). J.D. Barry University Dwayne O. Andreas School of Law. Bilingual (English & Spanish). Free 24/7 consultation: (469) 484-4412.
Jacquelyn Martinez, Owner and Attorney of Martinez Injury Law, PLLC. State Bar of Texas #24137485. J.D. Barry University Dwayne O. Andreas School of Law. Free 24/7 consultation: (469) 484-4412.