If the driver was completely off the app, the rideshare policy does not apply and the claim goes through the driver’s personal auto insurance, which may be as low as the Texas minimum of 30/60/25. If you were a paying passenger, though, the driver was logged in by definition. App status is the first thing to prove.
Texas ties rideshare insurance to what the app showed at the moment of the crash. Insurance Code Chapter 1954 sets three periods. With the app off, only the driver’s personal policy applies. With the app on and the driver waiting for a request, section 1954.052 requires at least $50,000 per person, $100,000 per incident, and $25,000 for property. Once the driver accepts a ride until the passenger leaves the car, section 1954.053 requires at least $1 million.
This matters most when another driver is hurt. If you were hit by someone driving their own car for Uber or Lyft, the first question is whether they were logged in. Drivers sometimes say they were off duty, and personal insurers can exclude coverage for time spent logged in to a rideshare app under section 1954.151, which can leave the parties pointing at each other.
If you were the passenger, the driver was logged in and engaged in a prearranged ride, because that is how the ride began. The $1 million requirement applied from the moment the ride was accepted. Your trip receipt and the app records prove it.
Texas also requires the rideshare company to step in if the driver’s own coverage lapsed or falls short: under section 1954.054, the company must provide the required coverage starting with the first dollar of the claim.
Pedestrians and cyclists hit by a rideshare driver face the same question. Whether the person who hit you was driving with the app on decides which coverage applies, and the investigation is the same: the app records, the driver’s statement to police, and any passenger in the car.
Do not rely on what the driver tells you at the scene. Owsley Law Firm requests the app-status and trip data from the company, identifies which policy applies, and charges no fee unless it wins.
Texas also requires drivers to disclose their status after a crash. Under section 1954.056, a rideshare driver must carry proof of the required insurance and, on request, tell the other people involved, insurers, and the investigating officer whether they were logged on to the network or on a prearranged ride at the time of the collision. Ask the officer to put that answer in the report.
The rideshare company must also warn drivers about the gap. Section 1954.101 requires the company to disclose to drivers that their personal auto policy may not cover them while they are logged on or carrying a passenger. That disclosure is one reason many personal insurers write exclusions for rideshare use, and why the app data so often decides which policy pays.
App status is proven with data, not memory. The rideshare company keeps records of when a driver logged on, accepted a request, picked up a passenger, and ended a trip. Those time stamps, matched to the time of the crash, decide which coverage applies.
Personal policies vary. Some drivers buy a rideshare endorsement that covers gaps; others do not. When a personal insurer denies coverage because the driver was logged in, the rideshare policy is the next place to look, and section 1954.054 requires the company to fill a lapse.
Mistakes that cost people money
- Accepting the driver’s word about app status.
- Waiting to request app data until after the records are harder to obtain.
- Giving a recorded statement to two insurers who are each trying to deny coverage.
Related questions
Does the rideshare policy cover me if the driver was waiting for a ride?
Yes, at the lower limits. While logged in and available, the policy must provide at least 50/100/25 in liability coverage.
What if both insurers deny the claim?
That is a coverage dispute, and it is resolved with the app data and the policy language. A lawyer can press both insurers and, if needed, the courts.
Does my own insurance help?
Your uninsured or underinsured motorist coverage and personal injury protection may apply, depending on your policy.
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