How much insurance does Uber or Lyft carry in Texas?

Coverage Changes by the Second — The Period You Are In When the Crash Happens Determines Everything

Uber and Lyft do not carry a single flat insurance policy. Both platforms use a three-period coverage framework that ties insurance levels to the driver’s app status at the exact moment of the crash. The difference between Period 1 and Period 3 is $950,000 in available coverage. The difference between Period 0 and Period 3 is the entire $1 million policy. Establishing which period was active when your Austin crash happened is the first and most consequential legal step in any rideshare case.

Period 0 — App Off: No Platform Coverage

When the driver has the Uber or Lyft app completely closed and is not logged in as available, the platform provides zero commercial auto coverage. The driver’s personal auto insurance is the only applicable policy.

Recovery path: Claim against the driver’s personal auto policy. If the driver has minimum Texas coverage ($30,000 per person), your own UM/UIM policy becomes your most important recovery source for any serious injury.

Important caveat: If the driver was operating a vehicle used primarily for rideshare but was momentarily between trips with the app closed, some personal auto policies contain rideshare exclusions that could create a coverage gap. Wayne Wright investigates both the driver’s personal policy terms and the exact app status at the time of your crash.

Period 1 — App On, Waiting for a Ride Request: Contingent Coverage

When a driver has logged into the app and is available for ride requests but has not yet accepted a specific trip, both Uber and Lyft provide contingent liability coverage — but only if the driver’s personal auto policy denies the claim (which it typically will, due to commercial use exclusions):

• Bodily injury liability: $50,000 per person / $100,000 per accident
• Property damage liability: $25,000 per accident
• Uninsured/underinsured motorist coverage: Matches the liability limits — $50,000 per person / $100,000 per accident (contingent)

The Period 1 coverage gap: Period 1 coverage is contingent on the driver’s personal policy denying the claim first. If the driver’s personal insurer disputes denial, this creates a coverage gap that can delay your recovery significantly. Period 1 is the most legally complex coverage period — and the one both platforms prefer to argue applies rather than Period 2 or 3.

Period 2 — Ride Accepted, En Route to Passenger: $1 Million Commercial Coverage

The moment a driver accepts a trip request and is en route to pick up the passenger, the full $1 million commercial auto liability policy activates. This coverage continues through arrival at the pickup location.

• Uber: $1 million per occurrence through James River Insurance Company (Fairfax Financial subsidiary)
• Lyft: $1 million per occurrence through Zurich Insurance Group
• Uninsured/underinsured motorist coverage: Both platforms carry $1 million UM/UIM coverage during Periods 2 and 3, protecting passengers when the other driver in a multi-vehicle crash is uninsured
• Contingent comprehensive and collision: If the driver carries personal comprehensive and collision coverage, both platforms provide contingent comp/collision with a $2,500 deductible during Periods 2 and 3

Period 3 — Passenger In Vehicle: $1 Million Commercial Coverage Continues

From the moment a passenger enters the vehicle through the moment they exit at the destination, the same $1 million commercial policy remains active. Period 3 is the strongest coverage position available in any rideshare case:

• $1 million liability coverage applies regardless of who caused the crash
• Passengers bear no comparative fault — recovery is 100% of documented damages
• The $1 million limit applies per occurrence — meaning per crash event, not per injured person
• If multiple passengers are injured in a single crash, all claims share the $1 million per-occurrence limit

Austin-specific note: Multiple-passenger rideshare crashes are most common in Austin’s 6th Street corridor and ABIA airport rideshare staging area. When multiple injured passengers share a $1 million limit, the per-person recovery is constrained unless the driver’s personal auto policy or a third-party defendant provides additional coverage layers.

The Coverage That Applies When Another Driver Caused the Crash

In many Austin rideshare accidents, the Uber or Lyft driver was not at fault — another driver caused the crash. The coverage framework in that scenario:

• Primary claim: Against the at-fault third-party driver’s personal auto liability insurance
• If third-party driver is uninsured or underinsured: Uber’s and Lyft’s $1 million UM/UIM coverage during Periods 2 and 3 applies — both platforms carry uninsured motorist protection that covers passengers and the rideshare driver when the at-fault party has no insurance or insufficient coverage
• Your own UM/UIM: Available as a final layer if platform UM/UIM coverage is exhausted by your damages in a catastrophic injury case

How Wayne Wright Determines Which Period Applies

Call 512-543-4397 immediately. Determining the applicable coverage period requires obtaining the platform’s trip data records showing the driver’s exact app status at the time of impact — to the second. Wayne Wright subpoenas these records as an immediate priority in every Austin rideshare case, before the platform can argue a more limited coverage period than the facts support.