Coverage in an Uber or Lyft crash in Texas depends on what the driver’s app was doing. App off, only the driver’s personal policy applies. Logged on and waiting for a request, $50,000 per person, $100,000 per crash and $25,000 property damage. En route or carrying a passenger, $1 million.
Three Periods, Three Very Different Policies
Texas insurance law divides rideshare driving into three periods, and the applicable coverage changes at each boundary. The question is never simply ‘was it an Uber.’ It is what the app was doing at the moment of impact.
Period 1 is the app off. The driver is a private motorist and only the personal auto policy applies — which in Texas may be as low as the state minimum of 30/60/25. Period 2 is logged on and waiting for a request: $50,000 per person, $100,000 per accident and $25,000 in property damage. Period 3 begins when a request is accepted and continues through drop-off: $1 million in aggregate coverage.
The jump from period 2 to period 3 is enormous — it can be the difference between a policy that runs out at the first hospital bill and one that covers a serious injury in full. That is why the trip record is often the most valuable document in the file.
Period
What the driver was doing
Coverage that applies
1
App off; driving personally
Driver’s personal auto policy only
2
App on, waiting for a ride request
$50,000 per person / $100,000 per accident / $25,000 property damage
3
En route to a passenger or carrying one
$1 million aggregate
Texas Insurance Code Chapter 1954 (§1954.052, §1954.053).
Period 2 Is Where Claims Get Squeezed
The waiting period is the gap most people never hear about. A driver circling near a stadium with the app on but no ride accepted is in period 2, where the limit is $50,000 for one person. One ambulance ride, one night of hospitalization and one orthopedic consult can approach that number.
When the available limit is smaller than the injury, other coverage matters immediately: your own uninsured/underinsured motorist coverage, medical payments coverage, and health insurance that may later assert reimbursement rights.
Do not accept a period classification because an insurer states it. Period status is provable from the platform’s own records, and the difference between period 2 and period 3 can be a matter of seconds.
If You Were the Passenger
A passenger in a rideshare vehicle is, by definition, in period 3 — so the $1 million layer is in play regardless of which driver caused the crash. A passenger is also almost never assigned fault, which removes the argument that dominates most auto claims.
If the rideshare driver caused it, the platform’s liability coverage responds. If another motorist caused it, that driver’s policy comes first, and the rideshare policy’s uninsured/underinsured layer may respond when the at-fault limits are too small.
Being hurt as a passenger does not mean choosing sides against the driver. The claim is against insurance, and passengers routinely recover without any dispute with the person who was driving them.
When Another Driver Caused the Crash
Texas minimum limits are 30/60/25 — $30,000 per person, $60,000 per accident, $25,000 property damage. Against a serious injury, minimum limits disappear quickly, which is when uninsured/underinsured motorist coverage becomes the real source of recovery.
UM/UIM in Texas does not behave like ordinary coverage. Under Brainard v. Trinity Universal, an insurer owes nothing until the insured establishes the other driver’s liability and the amount of damages — so a UIM claim can require a judgment or an agreed determination before payment is owed.
There is a tool for that. Under Allstate v. Irwin, an insured may use a declaratory judgment action to establish those elements and may recover attorney’s fees. UM/UIM must also be offered with every Texas auto policy, and a rejection has to be in writing — worth checking, because people often have coverage they do not remember buying.
Proving Which Period Was Active
Period status is a data question, not an opinion. The platform holds the timestamps: when the driver went online, when a request was accepted, when the passenger was picked up and dropped off, plus GPS traces for the trip.
Preserve what you control right away. Screenshot the trip in your app, save the receipt and the driver’s name and vehicle, photograph the scene and the rideshare decal, and make sure the crash report notes the vehicle was being used for rideshare.
An officer must file a crash report with TxDOT within 10 days where there is injury, death or $1,000 or more in property damage. Copies come from the TxDOT C.R.I.S. system at $6 regular or $8 certified, and can take up to 14 days to appear.
- Screenshot the trip screen, the receipt and the driver’s profile before they scroll away.
- Photograph the vehicle, its rideshare decal and the scene.
- Report the crash through the app so a claim number is generated with a timestamp.
- Get treated and keep every record — coverage limits mean nothing without documented injuries.
Deadlines and What Comes Next
Texas gives you two years from the date of injury to file suit, and a minor’s claim is generally tolled during minority. Rideshare cases can involve several insurers arguing about which period applied, and that argument does not stop the two-year clock.
If you were hurt in an Uber or Lyft — as a passenger, another driver, a cyclist or a pedestrian — the first step is establishing the period and the available limits. Jim Ross Law Group offers a free consultation at 817-275-4100, and there is no fee unless we win.
Frequently Asked Questions
I was a passenger in an Uber that crashed. Whose insurance pays?
A passenger is always in period 3, so the $1 million rideshare layer is available. If the rideshare driver was at fault, that coverage responds directly. If another motorist caused it, that driver’s policy pays first and the rideshare policy’s uninsured/underinsured coverage can respond when the at-fault limits are too small.
The Uber driver had the app on but no passenger. Does the $1 million apply?
No. Logged on and waiting for a request is period 2, which carries $50,000 per person, $100,000 per accident and $25,000 property damage. The $1 million layer starts only once a ride request has been accepted. The timestamps in the platform’s own records decide which period applied.
Do I have to sue Uber or Lyft to get paid?
Usually not. These are insurance claims made under policies the platforms maintain, and most resolve without any suit against the company itself. Whether the platform is a proper party depends on facts including the driver’s status and how the crash happened, which is a legal question worth answering early.
Can I make a claim if I was driving my own car and a rideshare driver hit me?
Yes. Your claim follows the same three-period analysis. If the rideshare driver had accepted a ride or had a passenger, the $1 million layer applies. If the app was on but no ride was accepted, the smaller period 2 limits apply. If the app was off, only the driver’s personal policy responds.
Will my own insurance be involved in a rideshare crash?
It can be, in a good way. Your uninsured/underinsured motorist and medical payments coverage can fill gaps when the responsible policy is too small, and using them is not an admission of anything. In Texas, UM/UIM must be offered with every auto policy and any rejection has to be in writing.
Why is my underinsured claim taking longer than the other driver's claim?
Because Texas treats UIM differently. Under Brainard v. Trinity Universal, the insurer owes nothing until you establish the other driver’s liability and the amount of your damages. A declaratory judgment action can establish those elements, and under Allstate v. Irwin an insured may recover attorney’s fees in that proceeding.
What should I do in the app right after the crash?
Report the crash through the app so a timestamped claim record is created, then screenshot the trip detail, the receipt and the driver’s profile before the entry scrolls out of your history. Those screenshots are the fastest independent proof of which coverage period was active.
How long do I have to bring a rideshare injury claim in Texas?
Two years from the date of injury, the same as any other Texas negligence claim, and two years from the date of death in a wrongful death case. A minor’s claim is generally tolled during minority. Disputes among insurers about which period applied do not extend that deadline.
This page is for general information only and is not legal advice. Reading it does not create an attorney-client relationship. Every case is different and past results do not guarantee or predict a similar outcome in any future case. Jim Ross Law Group, P.C., 2201 E Lamar Blvd #110, Arlington, TX 76006.