Rideshare Insurance in Texas (2024)

Driving for Uber and Lyft has become a popular option for people looking to make some extra money. But you don’t just need a car to get started as a rideshare driver — you may also need special auto coverage. Whether you drive for a rideshare service full-time or as a side gig, your personal car insurance policy may not offer adequate financial protection.

While rideshare insurance isn’t required for drivers in Texas, you’ll still need to carry higher coverage amounts than usual. Here’s what to know about rideshare insurance requirements in Texas and the coverage amounts you need.

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Rideshare insurance requirements in Texas

It’s helpful to know about the three phases when considering becoming a rideshare driver:

• Phase 1: You’re driving for personal use with the rideshare app turned off. In this case, your personal auto coverage will apply.

• Phase 2: You’re driving with the rideshare app turned on but haven’t received a request for a ride yet. Your personal auto coverage will serve as primary coverage, with Uber’s or Lyft’s driver insurance serving as secondary coverage, if needed.

• Phase 3: You’re driving with the rideshare app turned on and are either picking up a passenger or driving the passenger to their destination. Uber and Lyft’s insurance can serve as primary coverage, but high deductibles will apply.^[1]

While a specialty rideshare add-on isn’t required in Texas, you’ll likely need more coverage than the average person who doesn’t drive for a ridesharing service.

“The purpose of rideshare insurance is to fill the coverage gaps that exist between personal insurance policies and any coverage rideshare services might provide,” says John Richardson, sales manager at Fleetcover.

Auto coverage requirements vary depending on the phase. For phase 1, state minimum insurance requirements for personal coverage apply. In Texas, state minimum requirements include:

• $30,000 in bodily injury liability per person

• $60,000 in bodily injury liability per accident

• $25,000 in property damage liability^[2]

For phase 2, Texas requires that rideshare drivers carry the following limits:

• $50,000 in bodily injury liability per person

• $100,000 in bodily injury liability per accident

• $25,000 in property damage liability

You’ll need even more coverage for phase 3 — picking up and driving a passenger to their destination. In this phase, Texas requires drivers to have a total aggregate limit of $1 million in bodily injury liability and property damage liability insurance.

This additional coverage can help protect you financially if you’re in an accident and your passenger is injured or someone else’s property is damaged. Uber and Lyft provide phase 3 coverage for drivers, but deductibles are higher than what you’d pay for a personal auto policy of the same level.^[3]

“By having adequate rideshare insurance, drivers can have peace of mind knowing they have appropriate coverage during all ridesharing activities and financial protection in the event of an accident,” says Richardson.

Uber and Lyft requirements in Texas

Rideshare drivers in Texas and their cars need to meet certain requirements. But they can vary by company — Uber and Lyft drivers have different requirements. Here’s a look at car and driver requirements for the two main rideshare companies.

Rideshare car requirements

Rideshare driver requirements

How much does Texas rideshare insurance cost?

The cost of rideshare insurance in Texas varies based on which insurer you choose, the amount of coverage you want, and various other factors, like your driving record and location. For full-coverage insurance, you can expect to pay between $82 and $415 monthly. Liability coverage costs slightly less, ranging from $50 to $289 monthly.

Here’s a look at average monthly quotes and Insurify Quality (IQ) Scores for popular insurers.

Types of rideshare insurance coverage

Different types of rideshare insurance coverage are available, but in Texas, bodily injury and property damage liability are generally the only required coverages. Uber and Lyft provide these as primary coverages during phase 3, though both have fairly high deductibles.

Other coverage types are optional and may be worth considering for added protection. This is especially true if you’re a frequent rideshare driver. Some types of coverage to consider include:

• 

  Liability coverage

  Liability insurance covers medical bills for injuries to those in other vehicles if you’re found responsible for an accident. It also covers damage to others’ property, such as cars, fences, and mailboxes.

• 

  Uninsured/underinsured motorist coverage

  These coverages protect you financially if you’re in a motor vehicle accident with an uninsured or underinsured driver who’s at fault.

• 

  Collision and comprehensive coverage

  These cover damage to your vehicle as a result of a covered accident or fire, theft, or weather event.

• 

  Deductible options

  Uber and Lyft both have $2,500 deductibles for coverage, meaning you’ll need to pay $2,500 out of pocket before insurance kicks in. Other insurers may offer lower deductibles for the same amount of coverage.

How to buy Texas rideshare insurance

If you want to buy rideshare insurance in the Lone Star State, follow these steps:

1. Search for insurance companies that offer the coverage you need. Consider using a car insurance comparison site to simplify this process.

2. Compare quotes from different insurers to find affordable coverage that best meets your needs.

3. Apply for car insurance coverage with your preferred auto insurance company.

Texas rideshare insurance FAQs