Uber & Lyft Accidents in Texas: What Rideshare Passengers Need to Know
If you’re injured while riding in an Uber or Lyft in Texas, your right to compensation depends on one critical factor — the driver’s app status. Texas law sets specific insurance requirements based on whether the driver was waiting for a ride, en route to pick up a passenger, or actively transporting one. Knowing which coverage applies can make or break your claim.
Understanding Rideshare Regulations in Texas
Texas regulates rideshare companies under Chapter 2402 of the Texas Occupations Code, defining Uber and Lyft as Transportation Network Companies (TNCs). This law established a statewide system that replaced city-by-city regulations.
Under Chapter 2402:
That last point limits when Uber or Lyft can be held directly liable for an accident. Still, Texas law requires these companies to carry insurance that covers passengers during active rides.
How Rideshare Insurance Works
Insurance coverage in a rideshare accident depends on the driver’s activity in the app. Texas law, under Chapter 1954 of the Insurance Code, divides this into three time periods.
Period 0: Driver Off the App
When the driver is not logged into the Uber or Lyft app, their personal auto policy applies — usually the state minimum of $30,000 per person, $60,000 per accident, and $25,000 for property damage.
Period 1: Waiting for a Ride Request
Once the driver logs into the app but hasn’t accepted a ride, the coverage increases to at least:
If the driver’s personal insurer denies coverage because the vehicle was used for business, Uber or Lyft must provide coverage starting from the first dollar.
Periods 2 and 3: Accepted Ride or Passenger in the Car
When the driver has accepted a request or has a passenger onboard, Texas law requires $1,000,000 in total liability coverage for bodily injury, death, and property damage.
During this time, Uninsured/Underinsured Motorist (UM/UIM) and Personal Injury Protection (PIP) coverage may also apply, depending on the company’s policy and whether they were rejected in writing.
Who Pays After a Rideshare Accident?
If you’re a passenger in an Uber or Lyft accident, determining who pays depends on who was at fault and the app status at the time.
Rideshare Driver at Fault:
Another Driver at Fault:
Multiple Drivers at Fault:
These overlapping coverages make rideshare accidents far more complex than standard car crashes.
Fault Rules: How Texas Handles Shared Responsibility
Texas uses a modified comparative negligence system. Under this rule, you can recover compensation as long as you are 50% or less at fault. If you are found more than 50% responsible, you can’t recover damages.
For example:
If your total damages are $100,000 but you’re found 20% at fault, your recovery drops to $80,000.
Even as a passenger, comparative fault can come into play — for example, if you distracted the driver or failed to wear a seatbelt. This is why documentation and witness statements are key.
Compensation Available to Injured Passengers
Passengers injured in Uber or Lyft crashes may be entitled to several types of compensation, depending on the extent of their injuries and losses.
Common recoverable damages include:
Medical expenses (past and future) Lost wages and reduced earning capacity Pain and suffering Emotional distress Property damage (phones, laptops, etc.) Rehabilitation or physical therapy costs
If another party acted recklessly (such as a drunk driver), punitive damages may also be awarded in rare cases.
Why Suing Uber or Lyft Directly Is Complicated
Because drivers are independent contractors, Uber and Lyft are often insulated from direct liability for their drivers’ negligence. However, lawsuits can sometimes proceed against the company itself if there’s evidence of:
Texas courts have reviewed such cases, and outcomes vary based on evidence and compliance with Chapter 2402. Each situation is unique, so it’s critical to evaluate the facts early.
How Long Do You Have to File a Claim?
In Texas, the statute of limitations for personal injury claims — including rideshare accidents — is two years from the date of the crash.
Waiting too long can bar you from seeking compensation. Quick action is especially important in Uber and Lyft cases because app data, electronic records, and driver logs can be deleted or overwritten.
What to Do After a Rideshare Accident
If you’re a rideshare passenger involved in an accident, here’s what you should do — without admitting fault or negotiating directly with insurance adjusters:
Call 911 and seek medical care. Even minor symptoms may worsen later.
Report the accident in your rideshare app. Save the digital receipt, trip details, and screenshots of the driver’s name and vehicle.
Get insurance and contact information from the driver and other parties.
Document everything. Take photos, collect witness contacts, and note the time and location.
Avoid quick settlements. Insurance companies may offer low amounts before the full extent of your injuries is known.
Contact a rideshare accident lawyer. An attorney can identify all available coverages and ensure you aren’t shortchanged.
Common Misconceptions About Rideshare Accidents
Myth 1: Uber or Lyft will automatically cover my injuries.
Not always. Coverage depends on the driver’s app status and whether another motorist caused the crash.
Myth 2: The $1 million policy applies to all accidents.
It only applies when the driver has accepted a ride or has a passenger onboard.
Myth 3: Rideshare cases are just like car accidents.
They’re more complicated — involving multiple insurers, independent contractor rules, and app-based data that affects liability.
Why Legal Help Matters
Rideshare cases require navigating insurance contracts, statutory definitions, and app data logs — areas most passengers never see. A personal injury attorney familiar with Texas rideshare laws can:
AtThe Law Office of Joel M. Vecchio, P.C., our team helps accident victims across Texas secure fair compensation. We handle all types of vehicle collisions, including rideshare crashes — from negotiating with insurers to pursuing litigation when necessary.
Final Thoughts
When an Uber or Lyft ride turns into an accident, the aftermath can be overwhelming. Insurance disputes, medical bills, and app-based confusion can leave passengers unsure where to turn.
Remember: the coverage depends on the driver’s status, and the clock for filing a claim starts the day of the crash. Acting quickly gives your attorney more leverage to collect evidence and negotiate effectively.
For guidance from experienced Texas rideshare accident lawyers, contact us or call (972) 381-4610. Our legal team will review your situation, explain your options, and help you pursue the compensation you deserve.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For legal guidance tailored to your specific situation, consult a licensed attorney.