How Do Rideshare Insurance Requirements Differ from Regular Coverage Rules?

You may or may not be aware, but rideshare drivers are required to carry different types of insurance coverages than those driving for personal or commuting use. While rideshare companies may pick up some of the tabs for their drivers when collisions occur, these companies are not necessarily on the hook for every dime of damages incurred in a crash.

Read on to learn more about how rideshare insurance requirements differ from regular coverage rules.

Texas Rideshare Auto Insurance Requirements

As a rideshare driver in Texas, it’s important to understand how insurance works for people who drive for transportation network companies (TNCs).

Insurance “Periods”

The precise amount of insurance coverage you’ll need to drive for rideshare companies such as Uber and Lyft will vary depending on which “period” of rideshare driving you are in at a given time. Rideshare insurance periods include:

  • Period 0
    • You are not using the rideshare app and you are simply using your vehicle for personal reasons. In period 0, you just need coverage that meets the standard auto insurance minimums in Texas.
  • Period 1
    • You are signed in, your app profile is set to available, and awaiting a rideshare request. You need more coverage than the standard minimums in period 1.
  • Period 2
    • A ride has been matched or accepted in your profile and you are heading over to pick up the passenger. Periods 2 and 3 are when you need the most coverage.
  • Period 3
    • The passenger is in your vehicle and you are driving them to their destination. You are fully covered as long as the riders are in your car.

Learn more about auto insurance periods for Texas rideshare drivers by reading our blog, Understanding Rideshare Insurance Periods.

It’s important to note that Texas rideshare drivers tend to pay about 15-30% higher rates than those who only drive for personal reasons.

While rideshare companies may offer their drivers some coverage, it typically does not cover all of the costs incurred as a result of a crash. In addition, the rideshare company’s coverage may not apply unless your insurance provider rejects your claim.

Standard Auto Insurance Requirements for Texas Drivers

If you simply drive your vehicle for personal use, you don’t need as much coverage as if you were driving for a rideshare company. Drivers for personal use must only carry the following coverages:

  • Liability Coverage
    • This type of coverage will pay to fix another driver’s vehicle if you cause a collision. In addition, the other driver’s medical bills and some other expenses will be covered as well as any medical bills and other costs incurred by their passengers.
    • You must carry $30,000 of coverage for bodily harm per person,
      • Up to a total of $60,000 per collision, and
      • $25,000 of coverage for property damage.
        • This is often referred to as 30/60/25 coverage.

It’s important to keep in mind that most drivers will need to purchase more coverage than the required minimums in order to protect themselves in the event of a serious crash. Some of the other types of coverage you may look into adding to your policy include:

  • Additional liability coverage limits
  • Collision coverage
  • Comprehensive (other than collision) coverage
  • Medical payments coverage
  • Personal injury protection (PIP) coverage
  • Uninsured/underinsured motorist coverage
  • Towing and labor coverage
  • Rental car reimbursement coverage

If You’ve Been Hurt, We’re Here to Help

Sustaining injuries in a rideshare accident or any other type of collision can be a painful and difficult experience to endure. If it has happened to you, we may be able to help you recover the compensation you deserve for your damages. Don’t hesitate to reach out to our office right away to learn more about how we can help.

Contact our firm today at (210) 226-8888. Speak with a member of our team and learn about your rights to move forward!