After an Uber or Lyft crash in Texas, most people assume Uber or Lyft simply pays. In reality, Texas law ties coverage to the driver's status in the app. The same driver, in the same car, can be covered by a $1,000,000 policy or by nothing more than their personal insurance, depending on what the app showed at the moment of the crash.
Period 1: App Off
If the driver was not logged in to the rideshare app, the trip is treated like any other car accident. Only the driver's personal auto policy applies. Texas only requires personal policies to carry $30,000 per injured person, $60,000 per accident, and $25,000 for property damage, so serious injuries can quickly exceed those limits.
Period 2: App On, Waiting for a Ride
If the driver was logged in and available but had not accepted a ride yet, Texas Insurance Code Section 1954.052 requires coverage of at least:
- $50,000 for bodily injury or death per person
- $100,000 for bodily injury or death per incident
- $25,000 for property damage
Period 3: Ride Accepted Through Drop-Off
Once the driver accepts a ride request, the highest level of coverage applies. Under Texas Insurance Code Section 1954.053, the policy must carry a total of $1,000,000 per incident for death, bodily injury, and property damage. Under Section 1954.001, this period begins when the driver accepts the ride and ends when the last rider leaves the vehicle.
That means the $1,000,000 coverage applies while the driver is on the way to pick you up, not only while you are in the car.
Who This Coverage Protects
The rideshare policy covers people hurt because the rideshare driver was at fault: passengers, other drivers, pedestrians, and cyclists. If a different driver caused the crash, your claim usually goes against that driver's insurance first. The rideshare policy may also include uninsured or underinsured motorist coverage where Texas law requires it, which can matter if the at-fault driver has little or no insurance. Whether that coverage applies depends on the policy, so it is worth checking early.
Your Own Insurance May Help Too
Texas insurers must offer Personal Injury Protection (PIP) of at least $2,500 unless you rejected it in writing. If you have PIP on your own auto policy, it can help pay medical bills and lost wages regardless of who caused the crash, while the larger injury claim moves forward.
The 51% Rule
Texas uses a proportionate responsibility system under Chapter 33 of the Civil Practice and Remedies Code. If you are found partly at fault, your compensation is reduced by your share of the blame. If you are found more than 50% at fault, you cannot recover anything. Insurance companies know this, so expect them to look for ways to shift blame onto you.
You Have 2 Years
Texas generally gives you 2 years from the date of the crash to file a personal injury lawsuit, under Section 16.003 of the Civil Practice and Remedies Code. Evidence like app data and trip logs can disappear long before that deadline, so it pays to act early.
What to Do Right Now
- Screenshot the trip in your app, including the receipt and timestamps. This helps prove which insurance period applied.
- Get a police report and write down the driver's name, plate, and the rideshare company.
- See a doctor quickly, even if you feel fine. Some injuries take days to show up.
- Be careful with recorded statements to any insurance company before you understand which policy applies.