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Rideshare crashes in Texas: Uber and Lyft insurance periods

The Texas insurance rules for rideshare drivers, including the two coverage periods Insurance Code chapter 1954 sets, what a personal auto policy may exclude, and what a driver must disclose after a collision, as of October 2026.

9 min readPublished October 20, 2026Last updated October 22, 2026Edited by Joseph Budzinski, CTO, InjuryClaimGuide

The short answer

Texas sets insurance rules for rideshare drivers, such as Uber and Lyft drivers, in chapter 1954 of the Insurance Code. The law sets two coverage periods: while the driver is logged on to the app and waiting for a request, and during a prearranged ride, which begins when the driver accepts a ride and ends when the last rider gets out (Ins. Code §§1954.001(3), 1954.051). The required minimum coverage is higher during a ride ($1 million per incident) than while waiting (§§1954.052-.053), so which period a crash happened in matters.

This guide explains those rules in general terms, with the official text linked for each one. It is general informational guidance and is not legal advice. The terms of each insurance policy involved control what it covers.

Key facts (as of 2026-10-22)

  • App on, waiting for a request. The policy must provide 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 damage, plus UM/UIM and PIP where chapter 1952 requires them (Ins. Code §1954.052).
  • Ride accepted through drop-off. The policy must provide at least a $1 million total aggregate limit for death, bodily injury and property damage for each incident, plus UM/UIM and PIP where chapter 1952 requires them (§1954.053). The ride period starts when the driver accepts the request (§1954.001(3)).
  • The company fills a gap. If the driver's own policy has lapsed or lacks the required coverage, the company must provide it from the first dollar of a claim (§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); the Texas Department of Insurance (TDI) says most personal auto policies do not include coverage when you are using your car for ride sharing (TDI, Ride sharing).
  • Driver disclosure after a collision. On request, the driver must show proof of insurance and say whether they were logged on or in a prearranged ride (§1954.056(b)).
  • Driverless vehicles. Since September 1, 2025, an automated motor vehicle is treated as a transportation network company driver for the chapter 1954 coverage requirements (§1954.003).

What terms does Texas law use for rideshare companies?

Chapter 1954 defines the people and companies involved (Ins. Code §1954.001):

  • 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 a transportation network company offers or uses that enables a prearranged ride.
  • A driver is an individual who receives connections to potential riders from the company in exchange for paying a fee to the company, and who uses a personal vehicle to offer or provide a prearranged ride to a rider connected through the company's digital network.
  • A rider is an individual who uses the company's digital network to connect with a driver who provides a prearranged ride in the driver's personal vehicle.
  • A personal vehicle is a vehicle the driver owns, leases or is otherwise authorized to use, and that is not a taxicab, limousine or similar for-hire vehicle.

The Occupations Code applies the chapter 1954 requirements to transportation network companies and to drivers logged in to a digital network (Occ. Code §2402.101). The Texas Department of Licensing and Regulation issues the permit a transportation network company needs to operate in Texas (Occ. Code §2402.051) and publishes a list of the companies it has authorized (TDLR).

Do the rules apply to driverless rideshare vehicles?

Yes. An automated motor vehicle, as Transportation Code §545.451 defines it, is considered a transportation network company driver for purposes of the chapter 1954 insurance requirements, and those coverage requirements apply to the automated motor vehicle (Ins. Code §1954.003, effective September 1, 2025).

What are the rideshare insurance periods in Texas?

A driver, or the company on the driver's behalf, must maintain primary automobile insurance under chapter 1954 (§1954.051(a)). That insurance must cover the driver during two periods (§1954.051(b)):

  • while the driver is logged on to the company's digital network; and
  • while the driver is engaged in a prearranged ride.

What coverage applies while the app is on, between rides?

When a driver is logged on to the digital network and available to receive requests, but is not engaged in a prearranged ride, the policy must provide (§1954.052):

  • 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 or destruction of property of others in an incident;
  • uninsured or underinsured motorist coverage where Insurance Code §1952.101 requires it; and
  • personal injury protection coverage where Insurance Code §1952.152 requires it.

What coverage applies from ride acceptance to drop-off?

A prearranged ride begins when a driver accepts a ride requested through the company's digital network, and ends when the last requesting rider leaves the driver's personal vehicle (§1954.001(3)). During that time, the policy must provide, at a minimum (§1954.053):

  • coverage with a total aggregate limit of liability of $1 million for death, bodily injury and property damage for each incident;
  • uninsured or underinsured motorist coverage where §1952.101 requires it; and
  • personal injury protection coverage where §1952.152 requires it.

Those two sections require uninsured or underinsured motorist coverage and personal injury protection in Texas auto liability policies unless an insured named in the policy rejects the coverage in writing (Ins. Code §§1952.101(b)-(c), 1952.152).

The figures above are the minimum coverage limits the statute requires for each period. They are not a measure of any injury or claim.

Who provides the coverage, the driver or the company?

The coverage requirements can be met by insurance the driver maintains, insurance the company maintains, or a combination of the two (§1954.051(d)). The insurance must comply with the law that applies to personal automobile insurance in Texas, including Transportation Code chapter 601 (§1954.051(c)).

If a driver's own policy has lapsed or does not provide the required coverage, the company must provide the coverage beginning with the first dollar of a claim against the driver (§1954.054). Coverage under a policy the company maintains does not depend on the driver's personal insurer first denying a claim (§1954.055).

Does a personal auto policy cover rideshare driving?

Depending on its terms, a driver's personal auto policy may not cover rideshare driving. Under §1954.151, an insurer may 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. The exclusion can apply to any coverage in the policy, including liability, personal injury protection, uninsured and underinsured motorist, medical payments, comprehensive and collision coverage.

Chapter 1954 does not require a personal auto policy to cover a driver during those periods, but an insurer may choose to provide that coverage in the policy or by endorsement (§1954.152). Before a driver may accept a ride request, the company must tell the driver in writing what insurance it provides and that the driver's personal policy may not provide coverage during those periods (§1954.101).

What must a rideshare driver disclose after a collision?

A driver must carry proof of insurance that meets §§1954.052 and 1954.053 when using a vehicle in connection with the company's digital network. After a collision, the driver must provide that proof, on request, to a directly interested person, an automobile insurer and the investigating peace officer, under Transportation Code §601.053 (§1954.056(b)).

On request, the driver must also disclose to those same people whether, at the time of the collision, the driver was:

  • logged on to the company's digital network; or
  • engaged in a prearranged ride (§1954.056(b)).

That answer matters because the coverage the statute requires is different for each period.

What information do insurers receive in a claim investigation?

In an insurance claim investigation, the company and any insurer providing chapter 1954 coverage must assist each insurer involved by providing information to directly interested persons and to the driver's insurer. That information must include the precise times the driver logged on and off the digital network in the 12 hours before and the 12 hours after the accident, and a clear description of the coverage, exclusions and limits of the chapter 1954 policy (§1954.154).

Is the driver an employee of the rideshare company?

Under chapter 1954, a transportation network company does not control, direct or manage a personal vehicle or a driver who connects to its digital network, except as agreed by written contract (§1954.102). The Occupations Code also sets conditions under which a driver is considered an independent contractor and not an employee of the company (Occ. Code §2402.114).

What should a rider know after a rideshare crash?

Before you get into the vehicle, the company must show you, through its digital network, the driver's first name and picture and the make, model and license plate number of the vehicle (Occ. Code §2402.104). After the ride, the company must send you an electronic receipt by email or text message showing the ride's origin and destination, its total time and distance, and an itemized total fare, if any (Occ. Code §2402.105).

TDI suggests that passengers ask their own insurance agent or company whether their personal auto policy will cover them as a passenger in a ride-sharing vehicle, ask whether the ride-sharing driver has insurance that covers the ride, and check the ride-sharing company's website for information on insurance coverage (TDI, Ride sharing).

Rideshare crashes in Houston

The same chapter 1954 rules apply in Houston and across Texas. For local information:

What you can gather

While you think about your next steps, it can help to keep these in one place:

  • If you were a rider, the trip receipt and any screenshots of the driver and vehicle details shown in the app
  • The driver's proof of insurance, and the driver's answer about whether they were logged on or engaged in a prearranged ride
  • The crash report for your crash
  • Photos or video of the vehicles and the scene
  • Medical bills and records, and records of missed work and pay
  • Your own auto policy's declarations page
  • Letters or claim numbers from any insurer

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Frequently asked questions

Does rideshare insurance apply if the driver was waiting for a ride request?
Insurance Code chapter 1954 requires coverage while a driver is logged on to the company's digital network and available for requests, even when no ride is in progress. Ins. Code §1954.052 sets the minimum coverage for that period at $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 damage, plus UM/UIM and PIP where Insurance Code chapter 1952 requires them.
What coverage does Texas require during an Uber or Lyft ride?
Under Ins. Code §1954.053, while a driver is engaged in a prearranged ride the policy must provide at least a total aggregate limit of liability of $1 million for each incident, plus uninsured or underinsured motorist coverage and personal injury protection where Insurance Code chapter 1952 requires them. A prearranged ride begins when the driver accepts the ride and ends when the last requesting rider leaves the vehicle (§1954.001(3)).
Are there three rideshare insurance periods in Texas?
Rideshare coverage is often described in three phases (app on and waiting, driving to a pickup, and passenger on board). Texas law sets two periods. The first is while the driver is logged on and available but not in a prearranged ride (§1954.052). The second is the prearranged ride, which runs from the moment the driver accepts the ride until the last requesting rider leaves the vehicle (§§1954.001(3), 1954.053), so it covers both the drive to the pickup and the trip itself.
How do I find out whether the driver was logged on or on a ride?
Under Ins. Code §1954.056(b), a driver must disclose that, on request, to a directly interested person, an automobile insurer and the investigating peace officer. In an insurance claim investigation, §1954.154 also requires the company to provide directly interested persons and the driver's insurer with the driver's log-on and log-off times for the 12 hours before and after the accident.
Does my own auto policy cover me as a rideshare passenger?
It depends on the policy. The Texas Department of Insurance suggests asking your insurance agent or company whether your personal auto policy will cover you when you are a passenger in a ride-sharing vehicle, asking whether the ride-sharing driver has insurance that covers your ride, and checking the ride-sharing company's website for information on insurance coverage.
Can InjuryClaimGuide tell me which insurance will pay my claim?
No. InjuryClaimGuide is a legal advertising service, and we do not evaluate any claim. The insurers involved can explain their policies, and an attorney can advise you about your specific situation.

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