Rideshare 9 min read
Rideshare crashes look like ordinary car accidents until you try to figure out who pays. Uber and Lyft carry large commercial policies, but coverage turns on exactly what the driver's app was doing at the moment of impact. In Texas, that single fact can be the difference between a $30,000 state-minimum policy and $1,000,000 in available coverage. Here is how the coverage periods work and how Houston passengers, drivers, and pedestrians should handle a claim.
Texas Insurance Code Chapter 1954 governs transportation network company insurance. Coverage is divided into periods based on app status. Period 0 is app off, and only the driver's personal auto policy applies. Period 1 is app on and waiting for a request, where Uber and Lyft provide contingent liability of at least $50,000 per person, $100,000 per accident, and $25,000 property damage.
Period 2 begins when a ride is accepted and the driver is en route to pick up. Period 3 runs from passenger pickup to drop-off. In both periods 2 and 3, Uber and Lyft maintain $1,000,000 in third-party liability coverage, plus uninsured and underinsured motorist coverage in most cases.
Passengers are almost always covered by the $1,000,000 policy, because a passenger in the car means the ride is in period 3. The hard fights happen in period 1, and in cases where the rideshare driver hits a pedestrian or another vehicle while between rides.
App status is the whole case, and the data lives with Uber, Lyft, and the driver's phone. Screenshot everything at the scene: the driver's app screen, your trip receipt, the trip ID, and the vehicle and plate. If you were a passenger, your ride receipt with timestamps is strong proof of period 3.
If the driver claims the app was off, an attorney can subpoena trip records and telematics from the rideshare company. Do not rely on the driver's account, and do not rely on the adjuster to volunteer that a $1,000,000 policy applies.
Passengers can pursue the at-fault party, whether that is the rideshare driver or the other motorist, and typically reach the $1,000,000 layer when the rideshare driver is at fault. If the other driver caused it and carries only Texas minimum limits, the rideshare uninsured and underinsured coverage often fills the gap.
Rideshare drivers themselves face a harder path, because personal auto policies frequently exclude commercial use, and contingent coverage in period 1 is thin. A rideshare endorsement on the personal policy closes that gap and is worth adding before it is needed.
Pedestrians and cyclists struck by a rideshare vehicle recover under whichever period applied at impact, which makes early evidence preservation critical.
The most expensive mistake is accepting the first offer from a rideshare insurer before the full extent of injuries is known. These claims are handled by sophisticated third-party administrators whose opening numbers assume you will not push back.
The second is giving a recorded statement that muddles app status or downplays symptoms. The third is waiting. Texas gives you two years to file suit under Civil Practice and Remedies Code Section 16.003, but rideshare trip data requests and camera footage need attention in the first weeks.
No. It applies during periods 2 and 3, from ride acceptance through drop-off. If the driver's app was on but no ride was accepted, lower contingent limits apply, and if the app was off, only the driver's personal policy applies.
You can claim against whichever driver was at fault. If your Uber driver was at fault, the $1,000,000 rideshare liability policy generally applies. If the other driver was at fault and underinsured, rideshare UM/UIM coverage may cover the shortfall.
Your claim is against insurance coverage, not the driver personally. Rideshare companies carry these policies precisely because crashes happen.
Generally two years from the date of the crash for a personal injury lawsuit. Insurance claims should be opened far sooner, and trip data should be preserved within weeks.