In Texas, who pays for an Uber or Lyft accident depends on the driver’s app status at the moment of the crash: app off, waiting for a ride, or already on an accepted ride each trigger a very different insurance level. Legally, it’s treated as a variant of the more common car accident claim, though often with more than one insurer potentially responding. Identifying the right level is usually the most contested part of a claim, and the decisions you make about evidence in the first few days can determine how much you actually recover.
What are Uber and Lyft's insurance levels in Texas?
Texas Insurance Code, Chapter 1954, requires transportation network companies to maintain different insurance levels depending on what the driver was doing at the moment of the crash. It isn’t a single policy — it’s a tiered system that depends on whether the driver had the app off, on and waiting for a ride, or already driving on an accepted ride.
The structure is designed to protect passengers and third parties, not the driver: the more actively engaged a driver is in a trip, the higher the mandatory coverage backing that trip.
What does each level cover?
The law recognizes three scenarios:
App off. The driver is using the car for personal reasons. Only their personal insurance applies, subject to Texas’s usual minimums: $30,000 per person, $60,000 per incident, and $25,000 in property damage.
App on, no ride matched. The company must back a minimum of $50,000 per injured person, $100,000 per incident, and $25,000 in property damage. It’s the lower of the two levels required under Chapter 1954, and also the most frequently disputed.
Accepted or active ride. From the moment the driver accepts the ride until the passenger exits the vehicle, the law requires a combined limit of $1 million per incident — the same figure whether the driver is en route to the pickup or already has the passenger on board.
If you were riding as a passenger at the time of the crash, this last level almost always applies — see the full breakdown in our guide on Uber and Lyft passenger accidents.
Why might the insurer dispute which level applies?
The difference between levels can mean the difference between $50,000 and $1,000,000 in available coverage, so it isn’t unusual for a driver’s insurer to argue the crash happened at the lowest possible level. It’s also common for them to treat the middle level as secondary, expecting the driver’s personal insurer to respond — or deny the claim — first.
That can slow the process down considerably if no one challenges that classification early on.
What evidence helps prove the correct level?
The app’s own records — login time, ride acceptance, and passenger pickup — are usually the deciding evidence, and they aren’t public. In most cases they can only be obtained through a formal request to the rideshare company, something rarely achieved by an individual on their own, and worth pursuing early before the evidence becomes harder to get.
Identifying the correct coverage level from day one can change the entire outcome of a rideshare accident claim. At The Law Offices of John R. Salazar, we help our Dallas clients determine which policy applies to their case. If you were in an accident with an Uber or Lyft driver, you can request a free consultation to review your situation.
Frequently Asked Questions
Chapter 1954 doesn’t apply: the case is treated as an ordinary car accident, and only the driver’s personal insurance applies, subject to Texas’s usual minimums.
Generally not directly, since they treat their drivers as independent contractors, but the facts of each case are different and can lead to different results.
It’s worth reviewing any offer before accepting it. A free consultation with our experienced team of attorneys can help answer your questions.
At The Law Offices of John R. Salazar, we help Dallas clients identify which insurance policy applies after an Uber or Lyft accident. The consultation is free, and we don't charge unless we win. Call (214) 833-5378.
This article is for information only and is not legal advice. Every case is different; consult a lawyer about your specific situation.