As Houston continues to expand, rideshare services like Uber and Lyft have become common modes of transportation across the metro area. When a collision occurs on busy corridors like I-10, I-45, or the 610 Loop, recovering compensation is significantly more complex than a standard two-vehicle crash. The primary reason is the multi-tiered insurance framework that governs Transportation Network Companies in Texas.
The coverage periods under Texas law
Under Texas law, the insurance coverage available to injured parties depends entirely on the driver’s app status at the moment of the collision:
- Period 0 (app off): only the driver’s personal auto insurance applies
- Period 1 (app on, waiting for a request): Texas law requires primary liability coverage of at least $50,000 per person, $100,000 per incident for bodily injury, and $25,000 for property damage
- Period 2 (ride accepted, driver en route): the TNC’s commercial policy expands to $1,000,000 in aggregate liability coverage
- Period 3 (passenger in vehicle): the $1,000,000 commercial liability policy remains active throughout the trip
The specific moment of the crash determines which tier applies, which is why documenting app status immediately after an incident matters.
Insurance coverage gaps
The most disputed situations arise during Period 1. Personal auto insurance policies commonly include business-use exclusions, meaning a personal insurer may deny coverage if the driver was logged into a rideshare network at the time of the crash. At the same time, the TNC’s insurer may argue the driver was not actively en route, attempting to limit its exposure to the lower statutory minimums. Injured parties can find themselves caught between competing denials.
Protecting your legal interests
Because app status timestamps, digital logs, and GPS records determine which policy applies, preserving evidence such as trip receipts and screenshot confirmations early is important. A rideshare accident attorney in Houston can help injured passengers, motorists, or pedestrians evaluate their coverage options and pursue the compensation they are entitled to under Texas law.