Rideshare Insurance in Texas (2024)
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Written byJess Ullrich
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10+ years writing insurance and personal finance topics
Former associate finance editor for Investopedia
Jess is a subject matter expert in insurance, banking, and other personal finance topics. Her byline has appeared in numerous top web media, including Investopedia.
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Edited byDanny Smith
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Licensed auto and home insurance agent
4+ years in content creation and marketing
As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
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Updated November 20, 2024
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Table of contents
Table of contents
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.
Quick Facts
Uber and Lyft provide up to $1 million in liability insurance coverage for their drivers.
Your personal auto coverage may apply if you drive for a rideshare service in Texas.
If you plan to drive for Uber in Texas, your vehicle can’t be more than 16 years old.
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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.
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Best Car Insurance Companies in Texas (November 2024)
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
Must have four doors and be 16 years old or newer
Must be in decent condition with no cosmetic issues
Must not be commercially branded[4]
Must have four doors and be 14 years old or newer
Must have five to eight seats
Must not be a stretch limo or taxi and must not have a salvaged title
Rideshare driver requirements
At least a year of driving experience, or three years if younger than 25
Valid license
Proof of residency and insurance
Driver profile photo
Satisfactory driver screening[5]
At least 25 years old
Valid license
Texas registration sticker
Proof of insurance
Satisfactory driver screening[6]
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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.
The below rates are estimated rates current as of: Friday, November 1 at 12:00 PM PDT.
Insurance Company ▲▼ | Average Monthly Quote: Full Coverage ▲▼ | Average Monthly Quote: Liability Only ▲▼ | IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. ▲▼ |
|---|---|---|---|
| State Farm | $92 | $49 | 9 |
| GEICO | $100 | $53 | 9 |
| Allstate | $131 | $71 | 9 |
| Mile Auto | $155 | $76 | 8 |
| USAA | $164 | $88 | 9 |
| Mercury | $199 | $116 | 8 |
| Nationwide | $207 | $112 | 9 |
| Progressive | $233 | $135 | 8 |
| Safeco | $243 | $136 | 8 |
| Clearcover | $248 | $167 | 7 |
| Chubb | $279 | $151 | 7 |
| Elephant | $319 | $195 | 8 |
| 21st Century | $323 | $173 | 6 |
| Direct Auto | $335 | $175 | 7 |
| National General | $341 | $165 | 7 |
| Dairyland | $373 | $145 | 7 |
| The General | $381 | $175 | 7 |
| Bristol West | $387 | $181 | 5 |
| Liberty Mutual | $437 | $267 | 8 |
| GAINSCO | $473 | $223 | 7 |
| Commonwealth Casualty | $504 | $183 | 6 |
| State Auto | $619 | $333 | 9 |
| Foremost | $633 | $299 | 7 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Cheapest recent rates in Texas for rideshare drivers
Drivers in and around Texas have found policies from Dairyland, Mile Auto, Progressive, and more, through Insurify in the last few days.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
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:
Search for insurance companies that offer the coverage you need. Consider using a car insurance comparison site to simplify this process.
Compare quotes from different insurers to find affordable coverage that best meets your needs.
Apply for car insurance coverage with your preferred auto insurance company.
Texas rideshare insurance FAQs
If you’re still wondering how rideshare insurance works in Texas, you’ll find answers to some of the most commonly asked questions about this type of insurance below.
Do you need rideshare insurance in Texas?
No. You don’t need rideshare insurance in Texas, but it’s often smart to carry it. You’ll probably want to carry more than the state’s minimum liability coverage limits, depending on how often you drive for a rideshare program.[3]
Do Uber drivers in Texas have to carry commercial auto insurance?
In general, Texas doesn’t require Uber drivers to carry commercial auto insurance. But you may need this coverage in certain cases, such as if your car is commercially licensed as a livery, limo, or private car service. In those instances, you’ll likely need commercial auto insurance coverage to adequately protect you and your vehicle.[7]
What is 30/60/25 car insurance in Texas?
The numbers 30/65/25 for car insurance refer to the minimum coverage requirements in Texas. Drivers are required to carry $30,000 worth of bodily injury liability coverage per person and $60,000 per accident, as well as $25,000 worth of property damage liability coverage. The 30/60/25 is an abbreviated way to refer to coverage minimums.[2]
How do Uber and Lyft check that drivers are insured?
Both Uber and Lyft check that drivers are insured. As a condition of driving with either rideshare service, you’ll need to provide proof of insurance in Texas as part of the driver application process. If you’re unable to provide that, you probably won’t get approval to be a new Uber or Lyft driver.[6]
How does a rideshare insurance claim work?
If you’re in a car accident while driving for a rideshare company, you’ll want to ensure you report it to the police, your rideshare company, and your insurance company. Whether your personal insurance or the rideshare company’s insurance serves as your primary coverage will dictate where you submit your claim.
Collect the following information, just as you would if you were in a car accident while driving for personal reasons:
License plate number(s)
Other drivers’ insurance information
Names and phone numbers of other drivers and witnesses
Registration information from other drivers
Driver’s license information from other drivers
Related articles
More cities in Texas
Sources
- Uber. "Insurance for rideshare drivers using Uber."
- Texas Department of Insurance. "Automobile insurance guide."
- Insurance Requirements. "Texas Insurance Code Chapter 1954."
- Uber. "Vehicle Requirements."
- Uber. "Driver Requirements."
- Lyft. "Texas Driver Information."
- Uber. "Insurance requirements."
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Jess UllrichInsurance Writer
Jess is a personal finance writer who's been creating financial and business content for over a decade. Her work is published on Investopedia, MoneyWise, NextAdvisor, The HuffPost, and more. Prior to freelancing full-time, Jess was an editor at Investopedia, The Balance, and FinanceBuzz. Connect with her on LinkedIn.
Edited byDanny Smith
Licensed auto and home insurance agent
4+ years in content creation and marketing
As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
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