You may have heard that someone injured in an Uber or Lyft accident could be covered by up to $1 million. While this may be true, depending on the circumstances, that $1 million policy doesn’t apply to every Texas rideshare crash. In fact, the available coverage often turns on one fact: what the driver was doing in the app at the moment of impact. Understanding that activity is the first step toward identifying the policies that apply to your rideshare accident claim.
Rideshare insurance coverage in Texas depends on the driver’s activity, not simply whether the vehicle displayed a rideshare decal or carried a passenger earlier that day. This distinction affects passengers, people in other vehicles, cyclists, and pedestrians because it determines which policy should be investigated first.
How Driver Activity Determines the Coverage Tier
Texas law recognizes three main coverage situations for a “transportation network company,” which is the legal term for rideshare businesses like Uber and Lyft. Different requirements apply when the driver is offline, waiting for a request, or handling an accepted ride.
App Off
When the driver isn’t logged in, the driver’s personal auto insurance will almost always be the coverage that applies. Texas requires minimum liability limits of $30,000 for one injured person, $60,000 for two or more injured people in one crash, and $25,000 for property damage. However, these required policy limits don’t often add up to what an injury claim is actually worth.
Waiting for a Request
When a driver is logged in and available to accept rides but hasn’t accepted one yet, Texas Insurance Code Chapter 1954 requires at least $50,000 in bodily injury coverage per person, $100,000 per accident, and $25,000 for property damage. This waiting-period coverage is separate from the $1 million active-ride coverage.
Ride Accepted or Underway
A prearranged ride starts when the driver accepts a request and ends after the last requesting rider leaves the vehicle. During that period, the state requires at least a $1 million total aggregate liability limit for each incident. This tier applies while the driver is heading to the pickup location and while the passenger is in the vehicle.
A crash report may identify the driver and vehicle, but app records are usually needed to establish which coverage period applies.
Which Policy Applies to a Claim?
The driver’s personal policy and the rideshare company’s policy can both be relevant. Notably, Texas law doesn’t require a claimant to wait for the personal insurer to deny coverage before the rideshare policy is considered.
Chapter 1954 allows the required insurance to come from the driver’s policy, the rideshare company’s policy, or a combination of both. If the driver’s personal insurance has lapsed or doesn’t provide the required rideshare coverage, the company must provide that coverage from the first dollar of the claim.
It's good to note that personal auto policies often have limits or exclusions related to driving for hire. Our firm can examine the coverage information, the driver’s activity, and the collision evidence rather than relying on an insurer’s initial description of the available policy.
How to Verify the Driver’s Activity After a Crash
The driver’s activity is critical evidence in a rideshare accident claim. It's not something a crash victim should have to guess at. A rideshare driver involved in a collision must disclose whether they were logged into the digital network or engaged in a prearranged ride. They must also provide qualifying proof of insurance to a directly interested person, an auto insurer, or an investigating peace officer upon request. Texas Insurance Code Section 1954.154 further requires the rideshare company and its insurer to assist with the investigation by providing precise log-on and log-off times for the 12 hours before and after the crash, along with a clear description of coverage, exclusions, and limits.
If you were involved in an accident with an Uber or Lyft, you should also do your best to preserve information that can support the investigation:
- Take screenshots of ride details, trip receipts, and any app notifications available to you.
- Keep photographs of the crash scene, vehicle damage, and visible injuries.
- If you can, get witness names and contact information before people leave the scene.
- Preserve emails, texts, claim numbers, and letters from Uber, Lyft, or any insurer.
If you were a passenger, your trip receipt can help establish that the ride was underway. If you were in another vehicle or traveling on foot, witness accounts, video, and the driver’s digital records can be especially important when the driver disputes any part of your claim, including whether they were logged into the app at the time of the collision.
How UM, UIM, PIP & Shared Fault Affect Recovery After a Texas Rideshare Accident
Liability coverage isn’t always the only possible source of payment after a rideshare collision. Uninsured and underinsured motorist coverage, known as UM and UIM coverage, respectively, may apply when an at-fault driver has no insurance or insufficient insurance for the losses involved. Texas rideshare insurance requirements include UM and UIM coverage during the waiting and active-ride periods when required under Chapter 1952.
Personal injury protection, or PIP, can pay certain medical expenses and lost income regardless of fault when it applies under the policy. It can provide benefits while fault and liability coverage are being investigated, although the available benefits depend on the policy.
Fault is separate from insurance limits. Under Texas comparative fault rules, someone who isn’t more than 50 percent at fault can still recover damages, reduced by that person’s percentage of responsibility. Available coverage doesn’t establish fault, and fault doesn’t automatically determine the value of a claim.
Steps to Take After an Uber or Lyft Accident in San Antonio
First, you should always prioritize medical care, and report the collision to law enforcement when appropriate. A prompt medical evaluation and crash report can document injuries and the circumstances of the collision. Waiting too long can make it harder to connect evidence to what happened.
When speaking with an insurer, accurately describe the facts you know without guessing about the driver’s activity, speed, or responsibility for the crash. If you know the vehicle was operating as a rideshare, report that fact and allow the digital records and other evidence to establish the coverage tier. We always recommend that you talk to a lawyer before speaking with insurance adjusters or signing anything they provide to you. Avoid making any recorded statements or agreeing to a settlement without first discussing your case with an attorney.
Our rideshare accident lawyers investigate witness statements, police reports, driver cell phone records, dashcam or security video, and accident reconstruction evidence when needed. This work helps us identify the applicable policies and evaluate medical expenses, lost wages, pain and suffering, and lost earning ability.
Identifying the right policy starts with preserving evidence of what the driver was doing at the time of the crash. For a straightforward review of a rideshare crash in San Antonio, call our rideshare accident lawyers at The Warrior Law at (210) 598-5006.