Uber and Lyft Accidents in Texas: Who Pays?

Coverage depends on the app

Texas Insurance Code Chapter 1954 requires transportation network companies to carry insurance that changes with the driver’s status.

• App off: only the driver’s personal auto policy applies, and most personal policies exclude commercial driving
• Logged in, waiting for a ride: at least $50,000 per person and $100,000 per crash for bodily injury, plus $25,000 property damage
• Ride accepted through drop-off: at least $1,000,000 for injury and property damage, plus uninsured/underinsured motorist coverage

If you were a passenger

You are covered by the $1 million policy from the moment the driver accepted your ride. If another driver caused the crash, you also have a claim against that driver’s policy. Screenshot the trip in the app right away, report the crash in the app, and get medical care.

If you were in the other car, or on foot

Your claim against the rideshare driver depends on app status at the moment of impact. That data is held by the company. The firm sends a preservation demand immediately and subpoenas trip records if needed. Do not rely on the driver’s account of whether the app was on.

If you were the rideshare driver

You may have claims against the other driver, and the rideshare policy’s uninsured/underinsured motorist coverage may apply while you were engaged. Your personal insurer may deny coverage for commercial driving, so how the claim is presented matters.

Deadlines and early offers

Two years from the crash under Civil Practice and Remedies Code section 16.003. Rideshare insurers often make quick offers to passengers before injuries are fully known. A release signed early ends the claim for good.

Why rideshare crashes are more complicated than ordinary crashes

In an ordinary crash, there is one driver, one policy, and one insurer to deal with. In a rideshare crash, there are at least three parties in the background: the driver, the driver's personal insurer, and a transportation network company such as Uber or Lyft with its own commercial insurers. Each will point to another when responsibility comes up.

The rideshare company often describes its drivers as independent contractors rather than employees. That framing is used to argue that the company is not responsible for the driver's conduct. The insurance required by Texas law, however, applies regardless of how the company labels the relationship, and that is where a claim usually starts.

The three coverage periods under Chapter 1954

Texas Insurance Code Chapter 1954 requires transportation network companies to maintain insurance that changes with what the driver is doing. Which period applied at the moment of the crash is the most important fact in the claim.

• App off: the driver is off the platform, and only the driver's personal auto policy applies. Many personal policies exclude commercial driving, which can leave a gap
• App on, waiting for a ride request: the company's policy provides at least $50,000 per person and $100,000 per crash for bodily injury, plus $25,000 for property damage
• Ride accepted through drop-off: the company's policy provides at least $1,000,000 for injury and property damage, plus uninsured and underinsured motorist coverage

Passengers: your rights and your first steps

A passenger who is hurt while riding is covered by the $1 million policy from the moment the driver accepted the ride. If another driver caused the crash, the passenger may also have a claim against that driver's insurance. Passengers rarely share fault, which is why their claims are often the most straightforward part of a rideshare crash.

The first step is medical care, even if you feel shaken but fine. The second is to capture the ride itself before it disappears from your screen.

• Screenshot the trip, the driver's name and photo, the vehicle, the plate, and the route and time
• Report the crash through the app so the company has a record that you were on the trip
• Ask the police officer to list the rideshare vehicle and your name in the report
• Keep your receipt and any email or text the company sends afterward
• Do not accept a payment or sign anything from the company or its insurer before you understand what it releases

Other drivers and pedestrians hit by a rideshare vehicle

If you were in another car or on foot, your claim against the rideshare driver depends on the app status at the moment of impact. You cannot see that data yourself. The company holds it, and drivers do not always describe it accurately or remember it under stress.

A written preservation demand should go to the company early, asking it to keep trip records, GPS and telematics data, app logs, and communications with the driver. If the company does not provide the information voluntarily, it can be obtained in a lawsuit. Waiting risks the loss of records under ordinary retention practices.

If you were the rideshare driver

A rideshare driver hurt by another motorist may have a claim against that motorist, and the company's uninsured and underinsured motorist coverage can apply while the driver is engaged on a ride. Your personal insurer may deny coverage for commercial driving, so the claim has to be presented carefully.

Drivers should also be aware that statements made to any insurer can be used later. Describe what you know and do not guess about speed, distance, or whose fault it was.

Why the companies and their insurers resist

Rideshare cases involve large corporate insurers with experience minimizing claims. Common responses include disputing the app status, claiming the driver was an independent contractor acting outside the platform, blaming a pre-existing condition, and offering a quick settlement to a passenger who is still in treatment.

A quick offer is not a favor. It usually requires a release, and a release ends the claim permanently. If a later surgery, a longer recovery, or lost income appears after the release is signed, none of it can be added.

Damages and deadlines

A rideshare injury claim can recover medical expenses, lost income, reduced earning capacity, physical pain, mental anguish, impairment, and disfigurement, subject to Texas proportionate responsibility rules under Civil Practice and Remedies Code Chapter 33. Medical expense recovery is limited to amounts actually paid or incurred under section 41.0105.

The general deadline to file suit is two years from the date of the crash under Civil Practice and Remedies Code section 16.003. Evidence such as app data and dash camera footage can be lost long before then, which is why the practical deadline for acting on the evidence is much shorter.

Common questions

Common questions