What are the two rideshare coverage periods in Texas law?

Under Tex. Ins. Code §1954.051(b), the insurance must cover the driver while the driver is logged on to the company's digital network (§1954.052) and while the driver is engaged in a prearranged ride (§1954.053). A prearranged ride begins when the driver accepts a ride requested through the digital network and ends when the last requesting rider departs from the driver's personal vehicle (§1954.001(3)).

What are the minimum limits for each period?

While the driver is logged on and available but not engaged in a prearranged ride, §1954.052 sets minimum liability coverage of $50,000 for bodily injury to or death for each person in an incident, $100,000 for bodily injury to or death of a person per incident, and $25,000 for damage to property of others in an incident. During a prearranged ride, §1954.053 sets a total aggregate limit of liability of $1 million for death, bodily injury and property damage for each incident. Both periods also include UM/UIM and PIP coverage where Insurance Code chapter 1952 requires them. These are minimum policy limits, not a measure of any injury or claim.

Who must carry the insurance, the driver or the company?

Section 1954.051(a) says a driver, or the company on the driver's behalf, must maintain the insurance, and §1954.051(d) says the requirements may be met by the driver's insurance, the company's insurance, or a combination. If the driver's policy has lapsed or does not provide the required coverage, §1954.054 says the company must provide it beginning with the first dollar of a claim against the driver.

Can a personal auto policy exclude rideshare driving?

Yes. Section 1954.151 lets an insurer exclude from a personal auto policy any loss or injury that occurs while the driver is logged on to a digital network or engaged in a prearranged ride, and the exclusion can apply to any coverage in the policy. Section 1954.152(b) says an insurer may still choose to provide that coverage in the policy or by endorsement.

Can InjuryClaimGuide tell me which policy covers a crash?

No. InjuryClaimGuide is a legal advertising service. We do not apply the law or a policy to anyone's situation and do not evaluate any claim. An attorney can advise you about your specific situation.

Back to Learning Center

Texas Law Reference

Texas rideshare insurance, Insurance Code chapter 1954: the statute text explained

The official text of the Texas law on insurance for rideshare drivers, including the two coverage periods, the minimum limits for each, and what a personal auto policy may exclude.

11 min readPublished October 27, 2026Last updated October 27, 2026Edited by Joseph Budzinski, CTO, InjuryClaimGuide

The short answer

Texas Insurance Code chapter 1954 sets the insurance rules for rideshare drivers, which the statute calls transportation network company drivers. A driver, or the company on the driver's behalf, must maintain primary automobile insurance that covers the driver while the driver "is logged on to the transportation network company's digital network" and while the driver "is engaged in a prearranged ride" (Ins. Code §1954.051). The law sets a minimum for each period: $50,000 / $100,000 / $25,000 in liability coverage while the driver is logged on and waiting (§1954.052), and a $1 million total aggregate limit during a prearranged ride (§1954.053). A personal auto policy may exclude both periods (§1954.151). An attorney can tell you how these rules apply to a specific situation.

This entry provides general informational guidance and is not legal advice.

Key facts (as of 2026-10-27)

Two periods. The insurance must cover the driver while logged on to the company's digital network and while engaged in a prearranged ride (§1954.051(b)).
The ride starts at acceptance. A prearranged ride begins when the driver accepts a ride requested through the digital network and ends when the last requesting rider departs from the vehicle (§1954.001(3)).
Logged on, waiting for a request. At least $50,000 for bodily injury to or death for each person in an incident, $100,000 for bodily injury to or death "of a person per incident" and $25,000 for property of others, plus UM/UIM and PIP where chapter 1952 requires them (§1954.052).
During a prearranged ride. At least a $1 million total aggregate limit of liability for death, bodily injury and property damage for each incident, plus UM/UIM and PIP where chapter 1952 requires them (§1954.053).
The company fills a gap. If the driver's policy has lapsed or falls short, the company must provide the required coverage from the first dollar of a claim against the driver (§1954.054).
Personal policies may exclude rideshare time. An insurer may exclude losses while the driver is logged on or in a prearranged ride (§1954.151).
Disclosure after a collision. On request, the driver must provide proof of insurance and say whether the driver was logged on or engaged in a prearranged ride (§1954.056(b)).
Driverless vehicles. Since September 1, 2025, an automated motor vehicle is considered a transportation network company driver for the coverage requirements (§1954.003).

What does the law say a prearranged ride is?

The official text of Tex. Ins. Code §1954.001(3), as published by the Texas Legislature:

Sec. 1954.001. DEFINITIONS. In this chapter: (3) "Prearranged ride" means transportation provided by a transportation network company driver to a transportation network company rider, beginning at the time a driver accepts a ride requested by a rider through a digital network controlled by a transportation network company and ending at the time the last requesting rider departs from the driver's personal vehicle. The term does not include: (A) a shared expense carpool or vanpool arrangement or service; or (B) transportation provided using a taxicab, limousine, or similar for-hire vehicle.

Source: Tex. Ins. Code §1954.001, statutes.capitol.texas.gov. Text last checked October 27, 2026.

The same section defines the other terms. A transportation network company is an entity operating in Texas that uses a digital network to connect a rider to a driver for a prearranged ride. A digital network is any online-enabled application, software, website or system the company offers or uses that enables a prearranged ride. A personal vehicle is one the driver owns, leases or is otherwise authorized to use, and that is not a taxicab, limousine or similar for-hire vehicle (§1954.001).

What coverage does the law require in each period?

The official text of §1954.051(a), (b) and (d):

Sec. 1954.051. GENERAL INSURANCE REQUIREMENT. (a) A transportation network company driver or transportation network company on the driver's behalf shall maintain primary automobile insurance as required by this subchapter.

(b) Insurance maintained under this subchapter must allow a transportation network company driver to use a personal vehicle to transport transportation network company riders for compensation and cover the driver while: (1) the driver is logged on to the transportation network company's digital network as provided by Section 1954.052; or (2) the driver is engaged in a prearranged ride as provided by Section 1954.053.

(d) The coverage requirements of this subchapter may be satisfied by: (1) automobile insurance maintained by the transportation network company driver; (2) automobile insurance maintained by the transportation network company; or (3) a combination of Subdivisions (1) and (2).

The official text of §1954.052, the period between rides:

Sec. 1954.052. INSURANCE REQUIREMENTS: BETWEEN PREARRANGED RIDES. At the time a transportation network company driver is logged on to the transportation network company's digital network and is available to receive transportation network requests but is not engaged in a prearranged ride, the automobile insurance policy must provide: (1) the following minimum amounts of liability insurance coverage: (A) $50,000 for bodily injury to or death for each person in an incident; (B) $100,000 for bodily injury to or death of a person per incident; and (C) $25,000 for damage to or destruction of property of others in an incident; (2) uninsured or underinsured motorist coverage where required by Section 1952.101; and (3) personal injury protection coverage where required by Section 1952.152.

The official text of §1954.053, the prearranged ride:

Sec. 1954.053. INSURANCE REQUIREMENTS: DURING PREARRANGED RIDES. At the time a transportation network company driver is engaged in a prearranged ride, the automobile insurance policy must provide, at a minimum: (1) coverage with a total aggregate limit of liability of $1 million for death, bodily injury, and property damage for each incident; (2) uninsured or underinsured motorist coverage where required by Section 1952.101; and (3) personal injury protection coverage where required by Section 1952.152.

Source: Tex. Ins. Code §§1954.051-.053. Text last checked October 27, 2026.

What does it mean in plain language?

Two periods. The statute sets two coverage periods. Because a prearranged ride begins when the driver accepts the request, the drive to the pickup falls within the prearranged ride (§§1954.001(3), 1954.053).
Minimum policy limits. The figures in §§1954.052 and 1954.053 are the least a policy must carry for each period. A policy can carry more. They are not a measure of any injury or claim.
The wording of §1954.052(1)(B). The statute reads "$100,000 for bodily injury to or death of a person per incident". This entry quotes it as the Legislature published it.
UM/UIM and PIP come from chapter 1952. Both periods include uninsured or underinsured motorist coverage and personal injury protection "where required by" Insurance Code §§1952.101 and 1952.152. Those sections say an insurer may not issue a Texas auto liability policy without the coverage, and that the coverage does not apply if any insured named in the policy rejects it in writing (§1952.101(b)-(c), §1952.152).
It is primary insurance. Section 1954.051(a) calls for primary automobile insurance, and §1954.051(c) says it must comply with the law that applies to personal automobile insurance in Texas, including Transportation Code chapter 601.
Where it can be placed. The insurance may be placed with an automobile insurer authorized to do business in Texas or with an eligible surplus lines insurer (§1954.051(e)).

What if the driver's own policy has lapsed?

The official text of §§1954.054 and 1954.055:

Sec. 1954.054. LAPSE OF OR INSUFFICIENT COVERAGE. If an insurance policy maintained by a transportation network company driver under this subchapter has lapsed or does not provide the coverage required by this subchapter, the transportation network company shall provide the coverage required by this subchapter beginning with the first dollar of a claim against the driver.

Sec. 1954.055. RELATION TO PERSONAL AUTOMOBILE INSURANCE. Coverage under an automobile insurance policy maintained by the transportation network company is not contingent on a transportation network company driver's personal automobile insurer initially denying a claim.

Source: Tex. Ins. Code §§1954.054-.055. Text last checked October 27, 2026.

What may a personal auto policy exclude?

The official text of §1954.151(a) and (b):

Sec. 1954.151. AUTHORIZED EXCLUSIONS FROM COVERAGE. (a) An insurer may exclude from coverage under a personal automobile insurance policy issued to an owner or operator of a personal vehicle any loss or injury that occurs while a transportation network company driver using the personal vehicle: (1) is logged on to a transportation network company's digital network; or (2) is engaged in a prearranged ride.

(b) Subsection (a) applies to any coverage included in a personal automobile insurance policy, including: (1) liability coverage for bodily injury and property damage; (2) personal injury protection coverage under Subchapter D, Chapter 1952; (3) uninsured and underinsured motorist coverage; (4) medical payment coverage; (5) comprehensive physical damage coverage; and (6) collision physical damage coverage.

Source: Tex. Ins. Code §1954.151. Text last checked October 27, 2026.

Section 1954.151(c) adds that an exclusion authorized by the section applies notwithstanding a financial responsibility requirement under Transportation Code chapter 601. Section 1954.152 says the subchapter does not require a personal auto policy to cover a driver during those periods, and that it "does not prevent an insurer from providing coverage that may be excluded under this section if the insurer elects to provide the coverage in the policy or by endorsement" (§1954.152(b)). Before a driver may accept a ride request, the company must disclose in writing the insurance it provides and that the driver's personal policy may not provide coverage during those periods, depending on its terms (§1954.101).

The Texas Department of Insurance (TDI) puts it this way: "Most personal auto policies do not include coverage when you are using your car for ride sharing." It adds that some insurers offer policies for ride-sharing drivers and that "These policies may cover only part of the time you are driving, such as the time before you pick up a passenger." (TDI, Ride sharing.)

What must a driver disclose after a collision?

The official text of §1954.056(b):

Sec. 1954.056. FINANCIAL RESPONSIBILITY.

(b) A transportation network company driver shall carry proof of insurance that satisfies Sections 1954.052 and 1954.053 with the driver when the driver uses a vehicle in connection with a transportation network company's digital network. In the event of a collision, a driver shall provide the proof of insurance to a directly interested person, automobile insurer, and investigating peace officer on request under Section 601.053, Transportation Code. On request, a driver shall also disclose to a directly interested person, automobile insurer, and investigating peace officer whether, at the time of the collision, the driver was: (1) logged on to the company's digital network; or (2) engaged in a prearranged ride.

Source: Tex. Ins. Code §1954.056. Text last checked October 27, 2026.

Section 1954.056(a) adds that insurance meeting the chapter's requirements satisfies the financial responsibility requirement for an automobile under Transportation Code chapter 601.

What information is shared in a claim investigation?

The official text of §1954.154:

Sec. 1954.154. ASSISTANCE IN CLAIM INVESTIGATION. In an insurance claim investigation, a transportation network company and any insurer providing coverage under Subchapter B shall assist each insurer involved in the claim by providing information to directly interested persons and an insurer of the transportation network company driver. Information provided under this section must include: (1) the precise times that a driver logged on and off of the transportation network company's digital network in the 12-hour period immediately preceding and the 12-hour period immediately following the accident; and (2) a clear description of the coverage, exclusions, and limits provided under an automobile insurance policy maintained under Subchapter B.

Source: Tex. Ins. Code §1954.154. Text last checked October 27, 2026.

Do the rules apply to driverless vehicles?

The official text of §1954.003, added in 2025:

Sec. 1954.003. APPLICABILITY TO AUTOMATED MOTOR VEHICLES. An automated motor vehicle, as defined by Section 545.451, Transportation Code, is considered a transportation network company driver for purposes of Subchapter B, and the coverage requirements of that subchapter apply to the automated motor vehicle.

Source: Tex. Ins. Code §1954.003, added by Acts 2025, 89th Leg., R.S., ch. 1034 (S.B. 2807), effective September 1, 2025. Text last checked October 27, 2026.

How does the Occupations Code connect?

Occupations Code chapter 2402 regulates transportation network companies in Texas. Its insurance section points back to chapter 1954. The official text of §2402.101:

Sec. 2402.101. INSURANCE REQUIRED. The requirements of Chapter 1954, Insurance Code, apply to transportation network companies and drivers logged in to a digital network.

Source: Tex. Occ. Code §2402.101. Text last checked October 27, 2026.

When was this checked, and can it change?

The text above was last checked on October 27, 2026, against the official text published by the Texas Legislature and the TDI page linked above. Sections 1954.051-.055, which set the coverage requirements, have not been amended since they took effect on January 1, 2016; §1954.056 was last amended in 2023, and §1954.003 was added effective September 1, 2025. The Legislature can amend a statute in any session. It convenes in regular session on the second Tuesday in January of each odd-numbered year (Gov't Code §301.001), so the next regular session begins on January 12, 2027. This entry is scheduled to be rechecked against the official text by April 2027 and again after the 2027 regular session ends.

About InjuryClaimGuide

InjuryClaimGuide is a legal advertising service. We are not a law firm and do not provide legal advice. We do not recommend or endorse any attorney, and we do not analyze the merits of any potential claim. Routing to participating firms is based on geography, practice area, language, and firm capacity.

Frequently asked questions

What are the two rideshare coverage periods in Texas law?: Under Tex. Ins. Code §1954.051(b), the insurance must cover the driver while the driver is logged on to the company's digital network (§1954.052) and while the driver is engaged in a prearranged ride (§1954.053). A prearranged ride begins when the driver accepts a ride requested through the digital network and ends when the last requesting rider departs from the driver's personal vehicle (§1954.001(3)).
What are the minimum limits for each period?: While the driver is logged on and available but not engaged in a prearranged ride, §1954.052 sets minimum liability coverage of $50,000 for bodily injury to or death for each person in an incident, $100,000 for bodily injury to or death of a person per incident, and $25,000 for damage to property of others in an incident. During a prearranged ride, §1954.053 sets a total aggregate limit of liability of $1 million for death, bodily injury and property damage for each incident. Both periods also include UM/UIM and PIP coverage where Insurance Code chapter 1952 requires them. These are minimum policy limits, not a measure of any injury or claim.
Who must carry the insurance, the driver or the company?: Section 1954.051(a) says a driver, or the company on the driver's behalf, must maintain the insurance, and §1954.051(d) says the requirements may be met by the driver's insurance, the company's insurance, or a combination. If the driver's policy has lapsed or does not provide the required coverage, §1954.054 says the company must provide it beginning with the first dollar of a claim against the driver.
Can a personal auto policy exclude rideshare driving?: Yes. Section 1954.151 lets an insurer exclude from a personal auto policy any loss or injury that occurs while the driver is logged on to a digital network or engaged in a prearranged ride, and the exclusion can apply to any coverage in the policy. Section 1954.152(b) says an insurer may still choose to provide that coverage in the policy or by endorsement.
Can InjuryClaimGuide tell me which policy covers a crash?: No. InjuryClaimGuide is a legal advertising service. We do not apply the law or a policy to anyone's situation and do not evaluate any claim. An attorney can advise you about your specific situation.

Sources

Ready to talk about your situation?

A free intake is about two minutes. No obligation. You decide if you want to be connected with anyone.

Start free intake