How Does Insurance Affect Your Claim After a Rideshare Accident?
Rideshare services like Uber and Lyft have changed how we travel in Texas. But when an accident happens during a rideshare trip, figuring out who pays for your injuries can quickly get frustrating.
You may assume that either the driver’s insurance or the rideshare company will automatically cover everything. In reality, it depends on the details—who was at fault, what stage of the ride you were in, and what kind of policies were in effect at the time.
As a personal injury lawyer at The Fostel Law Firm, I’ve seen how insurance issues become one of the biggest challenges after a rideshare crash. These cases can be tricky, especially when multiple insurers are involved. But if you're injured, understanding how insurance works is a major step toward getting the compensation you deserve under Texas personal injury law.
Rideshare Accidents Are Different from Typical Car Accidents
Rideshare drivers are considered independent contractors, not employees. This legal distinction matters when it comes to personal injury claims. In traditional accidents, the at-fault driver's personal insurance would usually be responsible for damages. In rideshare accidents, you’re dealing with both personal and commercial policies—often at the same time.
In Texas, rideshare companies must carry commercial insurance to protect passengers and third parties. But that coverage isn’t active all the time. It kicks in only during specific phases of a ride. If the driver is logged into the app and has accepted a ride, the commercial policy applies.
If the driver is simply logged in and waiting for a ride, a different level of coverage applies. If the driver isn’t logged into the app at all, their personal insurance must cover the damages.
The Three Phases of Rideshare Coverage
When analyzing a personal injury case after a rideshare crash, I first determine what “phase” the driver was in. This dictates which insurance policy is responsible.
Driver Not Logged In: If the driver wasn’t using the rideshare app, then they are just another driver on the road. Only their personal auto insurance applies. In Texas, minimum coverage includes $30,000 for injuries per person, $60,000 per accident, and $25,000 for property damage.
Driver Logged In, Waiting for a Ride Request: Once a driver is online and available, the rideshare company provides a limited third-party liability policy—typically $50,000 for bodily injury per person, $100,000 per accident, and $25,000 for property damage. This kicks in only if the driver’s personal insurance doesn’t apply.
Driver En Route to Pick Up or During Trip: When the driver has accepted a ride or is transporting a passenger, the rideshare company provides up to $1 million in liability coverage. This is often the best situation for pursuing a personal injury claim.
Knowing these coverage stages helps me determine which insurer to contact first and what kind of claim to file.
Who Can File a Personal Injury Claim After a Rideshare Accident?
In a Texas rideshare accident, different people may be eligible to file a personal injury claim:
Rideshare passengers
Other drivers involved in the crash
Pedestrians or bicyclists struck by a rideshare vehicle
The rideshare driver, depending on fault
Even if you weren’t in the rideshare car, you might have a valid claim if you were injured by one. In these situations, I look at every angle—vehicle reports, insurance documents, and witness statements—to build a case that puts my client first.
What Insurance Covers in a Rideshare Injury Case
Insurance may seem like a simple concept—you get hurt, and they pay. But in real-world personal injury claims, the insurance company often tries to limit what it pays out. That’s why I look closely at what types of coverage are available after a rideshare crash in Texas.
Only one list:
Liability Coverage: Pays for injuries and property damage caused by the rideshare driver to others. This includes passengers, other drivers, and pedestrians.
Uninsured/Underinsured Motorist Coverage: Covers passengers if another driver (not the rideshare driver) is at fault and lacks enough insurance.
Contingent Collision Coverage: If the rideshare driver has collision coverage on their personal policy, Uber and Lyft may provide additional coverage during a trip.
Medical Payments (MedPay): Optional coverage that helps pay for medical expenses, regardless of fault. It’s not always available but can supplement other insurance.
Personal Injury Protection (PIP): In Texas, this coverage can also apply, though many rideshare drivers waive it. If active, it helps with medical costs and lost wages.
As a personal injury lawyer, I always verify whether each of these applies to a case. Sometimes the rideshare company’s policy doesn’t fully explain what's actually available, and digging into the details is key.
Insurance Disputes Can Delay Compensation
I’ve seen many personal injury cases where insurers point fingers at each other to avoid responsibility. In a rideshare case, there may be three or more insurance companies involved—each one trying to pay as little as possible.
For example, if an Uber driver causes a crash while waiting for a ride request, Uber’s insurer might claim it’s the driver’s personal policy that should pay. Meanwhile, the personal insurer might argue that the driver was engaged in commercial activity, which isn't covered by their policy.
When this kind of dispute happens, I act quickly to gather proof of the driver’s status at the time of the crash. This includes obtaining app login records, ride data, and communications between the driver and the company. Once I have the facts, I press each insurer to accept responsibility.
Dealing With Settlement Offers from Insurance Companies
After a rideshare accident, you may receive a quick settlement offer from one or more insurers. It might seem generous at first—but accepting too soon could cost you much more later. Insurance companies want to close the case fast and for as little money as possible.
Before my clients accept any settlement, I look at the full scope of their damages. In a personal injury case, that includes:
Current and future medical expenses
Lost income or reduced earning potential
Pain and suffering
Emotional trauma
Rehabilitation and physical therapy
Permanent disability or scarring
In Texas, personal injury law allows for the recovery of all these damages. A rushed settlement may only cover a fraction of what you're truly owed. I help clients push back and hold out for a fair offer that reflects the long-term effects of their injuries.
What Happens If the At-Fault Driver Has No Insurance?
Even with state laws requiring insurance, some drivers carry no coverage or not enough to pay for serious injuries. This is especially frustrating in rideshare accidents, where the driver may have let their personal insurance lapse or failed to tell their insurer they were working commercially.
In these situations, I often look to the rideshare company’s uninsured motorist coverage. Both Uber and Lyft offer this for passengers during active rides. If you're a third party injured by a rideshare driver, you may have to rely on your own uninsured motorist policy.
No matter the scenario, I make sure clients explore every insurance option before we consider other legal action. The goal is always to maximize recovery without leaving money on the table.
Why Timeliness Matters in Texas Rideshare Accidents
In Texas, the statute of limitations for personal injury claims is two years from the date of the accident. But waiting too long to start a claim can make it harder to gather evidence or reach the right insurers.
Right after a rideshare accident, I advise people to:
Get medical care immediately
Request a copy of the police report
Take photos and document injuries
Avoid giving recorded statements to insurance adjusters without legal advice
Acting early allows me to preserve evidence and build a stronger case. It also prevents the insurance company from claiming that your injuries weren’t serious enough to justify compensation.
Dedicated Legal Representative
As a personal injury lawyer at The Fostel Law Firm, I spend much of my time holding insurance companies accountable to the promises they make. With firm locations in Houston, Georgetown, and Kermit, I’m proud to serve the entirety of Texas. Call today to learn more.