When you’re injured in a crash involving Uber, Lyft, or any other rideshare service in Texas, the weeks and months that follow won’t be like dealing with a regular car accident.
Untangling rideshare insurance in Texas is a notoriously complicated process, with different rules depending on when the accident happened, who was at fault, and whether the driver was “on the app” or in another activity tier.
When you’re in pain and struggling with costly medical bills, missed work, and lost wages, the last thing you need on your plate is figuring out how rideshare insurance works in Texas. You may even be dealing with insurance adjusters pushing you to accept a settlement offer.
An experienced personal injury lawyer can take the legal burdens from you and stand up to the rideshare giants, so you can focus on your recovery. Still, knowing the basics of rideshare insurance can help demystify the legal process. It also gives you a base to make informed decisions.
Call us at (210) 941-1301 for a free consultation or contact us below. No cost to you unless we win.
Rideshare Insurance Phases in Texas
Rideshare insurance doesn’t look like the typical auto policy you might have on your own car. Instead, Uber, Lyft, and other services use tiered coverage systems that change depending on what the driver was doing at the moment of the crash. These “periods” decide whose insurance pays for injuries and damages.
It’s not enough that the driver was working for Uber or Lyft; the driver’s exact status in the app determines whether you’re looking at the driver’s personal policy, the rideshare company’s commercial policy, or some combination of both.
Period 0 – The App Is Off
When a rideshare driver’s app is turned off, they’re essentially a private driver. Any accident during this time falls entirely under their personal auto insurance policy.
In Texas, the minimum required liability insurance is:
- $30,000 per person for bodily injury
- $60,000 per accident for bodily injury
- $25,000 per accident for property damage
However, many personal auto policies include “business use” exclusions. That means even if the app was off, insurers may try to deny coverage if they suspect the driver was out looking for rides. This often leads to disputes and delays.
Period 1 – App On, Waiting for a Ride
Once the driver turns on the app and waits for a fare, rideshare companies like Uber and Lyft provide limited liability coverage. In Texas, this includes:
- $50,000 per person for bodily injury
- $100,000 per accident for bodily injury
- $25,000 for property damage
But this coverage only kicks in if the driver’s personal insurance refuses or is insufficient. That’s a gap that sometimes leaves injured victims caught between two insurers pointing fingers at each other.
Periods 2 and 3 – Ride Accepted or Passenger Onboard
When the driver has accepted a ride request or is carrying passengers, Uber and Lyft provide Texas-mandated $1 million liability policies. This coverage generally applies to injuries to passengers, other drivers, pedestrians, and property damage caused during the active ride.
Yet even the $1 million policy can become complicated in serious injury cases. If a crash involves catastrophic injuries or fatalities, damages can quickly exceed policy limits, leaving families considering options like a Texas wrongful death lawsuit against other parties who may share liability.
Who Pays for Your Injuries After a Rideshare Crash?
One of the most stressful parts of a rideshare crash is figuring out who’s supposed to cover your medical bills, lost income, and other damages, especially when your health and family’s financial future hang in the balance.
Texas is an “at-fault” state, which means the person or company responsible for the accident must pay. But with rideshare accidents, pinpointing fault and coverage can be like untangling a knot.
If the rideshare driver caused the crash, your claim may go:
- Against the driver’s personal policy (if the app was off)
- Against the rideshare company’s commercial policy (if the app was on)
- Against your own uninsured/underinsured motorist coverage if neither insurance is enough
However, if another driver caused the crash, their insurance should pay. But sometimes, third-party drivers carry low policy limits or lack insurance entirely, forcing you to explore claims under Uber’s or Lyft’s uninsured/underinsured policies, which may also provide coverage in certain situations.
Texas’s Comparative Fault Rules May Affect
Texas follows a modified comparative fault rule. If you’re partially responsible for the crash, your compensation is reduced by your percentage of fault. But if you’re found 51% or more at fault, you can’t recover damages at all.
Imagine you’re a rideshare passenger injured in a crash. If an investigation finds you contributed in some way — say, distracting the driver — your settlement could be reduced. However, rideshare passengers are rarely found partially at fault unless their actions directly interfere with driving.
These fault rules also affect wrongful death cases. A family filing a Texas wrongful death lawsuit may face reduced damages if the deceased is deemed partly responsible for the crash. It’s one reason having skilled legal help is crucial to protect your family’s financial recovery.
Insurance companies often use comparative fault rules to minimize their liability by shifting blame onto the injured party or others. A skilled rideshare accident lawyer can beat back undue allegations of blame against you.
Insurance Companies Don’t Always Play Fair
Insurance adjusters may seem polite and helpful, but remember: their goal is to protect the company’s bottom line.
In rideshare cases, insurance companies often:
- Delay or deny claims by disputing the driver’s app status
- Argue over whether commercial or personal policies apply
- Attempt lowball settlements for significant injuries
- Blame injured passengers or other drivers to minimize payouts
The presence of multiple insurers creates more opportunities for blame-shifting. Even with seemingly clear fault, it’s common to see Uber and Lyft’s insurers argue that the driver was off the app or not officially transporting a passenger to avoid liability.
Why Rideshare Claims Are Different From Regular Car Accidents
A crash with a rideshare driver may feel similar to any other collision, but the legal and insurance issues make it an entirely different animal.
Here’s why rideshare cases in Texas are so unique:
- Corporate Involvement: Uber and Lyft are billion-dollar companies with dedicated legal teams that aggressively defend claims.
- Multiple Policies: Several layers of coverage may exist — personal, commercial, and excess liability.
- Regulatory Rules: Texas has specific laws for rideshare operations, including insurance minimums.
- Higher Stakes: Rideshare vehicles often carry passengers, increasing potential injury claims and policy limits.
Victims often struggle to know which insurer to pursue, how much coverage exists, and what steps to take next. This confusion can result in delays, unpaid bills, and settlements far lower than what an injured person truly needs to move forward.
Steps to Take After a Rideshare Crash in Texas
If you’ve been in a rideshare crash, you’ve likely already seen a doctor or are undergoing treatment for your injuries, and that’s the most important step to take. If you haven’t received a medical exam, schedule one as soon as possible. Some injuries don’t show up right away, and delays can hurt both your health and your rideshare accident claim.
But medical care is only part of protecting yourself. Here’s what else you should do:
- Hire a lawyer. Rideshare claims are complicated, and insurance companies often fight hard to pay as little as possible. A lawyer can deal with the insurers and protect your rights.
- Keep all medical appointments. Skipped treatments or gaps in care give insurers ammunition to argue your injuries aren’t serious or related to the crash.
- Document your recovery. Write or record daily notes about your pain, limitations, and how the crash has affected your life. These personal details can be strong evidence supporting your claim for pain and suffering damages.
- Preserve evidence. Photos of the crash scene, damage, injuries, and contact info for witnesses can strengthen your claim.
- Save the rideshare app details. Screenshots showing your ride information and driver details help prove the crash happened during a rideshare trip.
- Be careful with insurance adjusters. They may seem helpful, but their goal is to limit payouts. Don’t give detailed statements or accept quick offers without legal advice. It’s best to refer them to your personal injury lawyer.
Taking these steps can make a significant difference in your recovery and in holding the right parties accountable after a rideshare crash.
Evidence Needed for a Rideshare Insurance Claim
Insurance companies demand proof for every dollar they pay out. The more evidence you collect, the stronger your claim. Rideshare accident claims in Texas often rely on:
- Medical records linking your injuries to the crash
- Police reports detailing fault and contributing factors
- App data showing whether the driver was logged in and actively working
- Witness statements supporting your version of events
- Proof of lost income, such as pay stubs or employer letters
- Expert testimony in severe injury cases, such as life-care planners or economists
Even if liability seems clear, rideshare insurers often fight aggressively to avoid large payouts. They may challenge the severity of your injuries, question medical treatment, or argue that another driver is responsible.
When crashes involve catastrophic injuries or fatalities, evidence becomes even more important. Families pursuing a Texas wrongful death lawsuit after a rideshare crash often work with legal teams experienced in preserving and presenting evidence in court.
How Uninsured and Underinsured Coverage Applies in Texas Rideshare Crashes
Sometimes, the driver who caused your rideshare crash doesn’t carry enough insurance to cover your damages, or has no insurance at all. That’s where uninsured and underinsured motorist (UM/UIM) coverage steps in.
In Texas, rideshare companies like Uber and Lyft carry UM/UIM coverage that applies when:
- Another driver causes the crash and flees the scene
- The at-fault driver doesn’t have insurance
- The at-fault driver’s insurance limits are too low to pay for your damages
These policies can provide significant protection, but rideshare insurers often resist paying these claims without thorough documentation. Proving that the other driver was uninsured or that your damages exceed their policy limits can become a battle of paperwork and persistence.
If you carry your own UM/UIM coverage on your personal auto policy, it may also come into play, depending on the circumstances of the crash and how the rideshare insurers handle your claim.
Key Takeaways
- Texas Uber and Lyft accidents involve complex insurance systems, including different “periods” of coverage based on the driver’s app status.
- Texas uses a modified comparative fault rule that can reduce or bar your recovery if you’re partially responsible, so determining fault is essential.
- Insurance companies often dispute coverage in rideshare crashes, delaying claims or offering low settlements.
- Uninsured and underinsured coverage may be available through rideshare policies or your own auto insurance if another driver is at fault and lacks sufficient coverage.
- Victims and families considering a Texas wrongful death lawsuit after a rideshare crash should seek legal guidance due to the high stakes and legal challenges.
- An experienced personal injury firm can handle communication with insurers, gather crucial evidence, and fight for the full and fair compensation you need.
FAQs About Texas Rideshare Insurance
Can I sue Uber or Lyft directly after a rideshare accident in Texas?
It depends. Generally, Uber and Lyft classify drivers as independent contractors, not employees, which can shield the companies from direct liability in many cases. However, there may be situations where a lawsuit against the rideshare company is possible, for example, if they failed to screen a dangerous driver. Speak with a Texas personal injury attorney about the specific details of your case.
Does rideshare insurance cover passengers, pedestrians, or cyclists?
Yes, if the driver was on the app and either waiting for a ride or transporting passengers, Uber and Lyft provide liability coverage that can pay for injuries to passengers, pedestrians, or cyclists harmed in the crash.
What if I was hit by an Uber or Lyft driver while driving my own car?
If a rideshare driver hits and injures you, their personal insurance pays if they were off the app. But if they were waiting for a ride, picking someone up, or carrying a passenger, Uber’s or Lyft’s commercial insurance may cover your damages. Knowing whether the driver was working and their status at the time is an important factor for your claim.
How long do I have to file a claim after a rideshare accident in Texas?
In Texas, the statute of limitations for most personal injury claims, including rideshare accidents, is two years from the date of the crash. For a Texas wrongful death lawsuit, the deadline is generally two years from the date of death. However, legal deadlines can vary depending on your situation, so talk with an attorney as soon as possible to protect your rights.
How much does it cost to hire a lawyer for a rideshare accident case?
Most personal injury lawyers in Texas work on a contingency fee basis. This means you pay nothing upfront, and legal fees are collected as a percentage of any compensation recovered for you. At Cowen Rodriguez Peacock, consultations are free, and you owe nothing unless we win your case.
After a Rideshare Crash in San Antonio, You Deserve Answers
An accident with Uber or Lyft can leave you facing not only injuries but an uphill fight with powerful companies determined to protect their profits. You deserve clear answers and someone in your corner who knows how to hold them accountable.
At Cowen Rodriguez Peacock, we’re ready to help you take back control.
As Texas trial lawyers focused on personal injury and catastrophic crash cases, we know how Uber and Lyft fight claims and how to fight back. We’ve recovered millions for clients injured in commercial and rideshare collisions across San Antonio and beyond.If you’ve been hurt in a rideshare accident or are considering a Texas wrongful death lawsuit after losing a family member, call Cowen Rodriguez Peacock today at (210) 941-1301 or reach us online through our contact page. Let us handle the legal work while you focus on healing and rebuilding your life.
Call us at (210) 941-1301 for a free consultation or contact us below. No cost to you unless we win.