Question 1

Does Uber or Lyft insurance apply if the driver's app was off?

Accepted Answer

No. When the app is off, the vehicle is treated as a private car and the rideshare company's insurance never applies. Any claim runs through the driver's personal auto policy, which in Texas may carry only minimum limits of $30,000 per person, $60,000 per crash, and $25,000 in property damage.

Question 2

What insurance applies when a rideshare driver is online but waiting for a ride request?

Accepted Answer

This is Period 1. Texas law (Tex. Ins. Code ch. 1954) requires Uber and Lyft to carry contingent liability coverage of $50,000 per person and $100,000 per crash for bodily injury, plus $25,000 for property damage. It applies when the driver causes a crash and their personal policy denies the claim, which personal policies routinely do once they learn the app was on.

Question 3

When does the $1,000,000 Uber or Lyft insurance policy apply?

Accepted Answer

From the moment a driver accepts a trip until the passenger is dropped off (Periods 2 and 3), Uber and Lyft maintain a $1,000,000 third-party liability policy. It covers injuries the driver causes during an active trip, including injuries to the passenger riding in the vehicle. Contingent comprehensive and collision coverage for the driver's vehicle also applies during this window, typically with a deductible of about $2,500.

Question 4

What if I was an Uber or Lyft passenger and another driver caused the crash?

Accepted Answer

The at-fault driver's liability policy pays first. If that driver is uninsured, underinsured, or fled the scene, the rideshare company's uninsured/underinsured motorist (UM/UIM) coverage, up to $1,000,000 during an active trip, covers the difference. As the passenger, you are typically the one person in the crash with no fault argument against you.

Question 5

What if I don't know whether the rideshare driver's app was on?

Accepted Answer

Most injured people don't know; and they shouldn't rely on what the driver or an insurance adjuster says. Whether the app was on and whether a trip was accepted is recorded to the second in the rideshare company's own systems. An attorney can send a preservation demand and obtain the trip and GPS logs. That single timestamp can swing a claim from a personal minimum-limits policy to a $1,000,000 commercial policy.

Question 6

Does a $1,000,000 policy mean I will recover $1,000,000?

Accepted Answer

No. The policy limit is a ceiling, not a payout. It means the coverage is large enough that the full, documented value of a serious injury claim, including medical bills, lost income, future care, and pain and suffering, can actually be paid, rather than being capped by a small personal policy. The insurer behind it still defends these claims aggressively.

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Hurt in an Uber or Lyft crash? Find out which policy pays.