When you are hurt in an Uber or Lyft crash in Texas, the first question is not who hit whom — it is which insurance was active at the moment of the wreck. Texas treats rideshare coverage in three distinct phases, and the phase determines whether you are dealing with a $50,000 policy or a $1 million one.

The framework comes from Texas House Bill 100, which in 2017 created a single statewide standard for transportation network companies (TNCs) like Uber and Lyft, codified in the Texas Insurance Code. Before that, individual cities set their own rules. Today, the same coverage tiers apply across San Antonio, Austin, and the rest of the state, and they hinge entirely on the driver’s app status when the collision happened.

Period 0 — App is off

When the rideshare app is closed, the driver is just a regular motorist. Only their personal auto insurance applies, and most personal policies in Texas carry only the state-minimum 30/60/25 limits: $30,000 per person, $60,000 per accident, and $25,000 for property damage. Worse, many personal policies exclude commercial driving entirely, so even that coverage can be contested if the insurer suspects rideshare activity. If the driver was fully logged off, there is no TNC coverage at all.

Period 1 — App is on, no ride accepted

The driver is logged in and waiting for a request but has not accepted one yet. Texas Insurance Code §1954.052 requires the rideshare company to provide contingent liability coverage during this window: at least $50,000 per person for bodily injury, $100,000 per accident, and $25,000 for property damage. It is real coverage, but it is a fraction of what becomes available once a ride is accepted — and the gap between Period 1 and Period 2 is one of the most contested points in any rideshare claim.

Period 2 — Ride accepted, driving to the pickup

The moment the driver accepts your request, the large policy activates. Uber and Lyft both carry a $1 million third-party liability policy that applies from acceptance onward — even though no passenger is in the car yet. A crash on the way to pick you up falls under this $1 million coverage, not the limited Period 1 amounts.

Period 3 — Passenger in the vehicle

The same $1 million policy stays active for the entire trip, from the moment the passenger gets in until the ride is ended in the app. This is the period most injured passengers fall under, and it carries the highest available coverage. Texas law also requires uninsured/underinsured motorist coverage to be available during this period, which matters when a third driver causes the crash and carries too little insurance of their own.

Why the period is the whole case

The complication is proof. Which period was active is established by the app’s backend data — timestamps showing exactly when a ride was requested, accepted, and ended. Drivers and insurers do not always volunteer that data, and the difference between Period 1 and Period 2 can be the difference between $50,000 and $1 million in available coverage for the same injuries.

That is why these claims are rarely as simple as they look. If you were injured in a rideshare crash, the period that was active controls your entire claim, and the rideshare insurer has no obligation to interpret it in your favor. A Texas rideshare accident lawyer can subpoena the trip data and establish which policy applies before evidence disappears. Because rideshare wrecks are still Texas car accident claims at their core, the same fault rules apply on top of the TNC coverage analysis.

Related reading: if you were a passenger in the rideshare, who is actually responsible can be a separate question with more than one answer.

This article is general information about Texas rideshare insurance law and is not legal advice. No attorney-client relationship is formed by reading this page. Coverage and outcomes depend on the specific facts of each case. Contact Wayne Wright LLP for advice specific to your situation.