The Complete Guide to Texas Rideshare Insurance in 2024

Your personal auto insurance policy typically won’t cover you if you use your car for business purposes, such as driving rideshare. And while transportation network companies (TNCs) offer some protection, it might not be enough. If you’re a Texas driver who makes extra cash driving for Uber or Lyft, buying rideshare insurance can help fill any gaps.

Here’s how rideshare insurance works in Texas, how companies protect their drivers, and why you might want to buy additional rideshare coverage.

Key Takeaways:

• TNCs typically provide liability insurance for Texas rideshare drivers during two phases of a trip.
• Texas drivers pay an average of $51 more per month for rideshare coverage, but Clearcover offers the cheapest rideshare insurance in Texas, at just $8 extra per month.
• You may want additional coverage, such as collision or comprehensive insurance, to protect you while driving for a rideshare service.

How Does Rideshare Insurance Work in Texas?

Transportation network companies like Lyft or Uber offer insurance coverage, but it only protects you at certain times — and your personal auto policy won’t cover you at all while you’re actively ridesharing. In Texas, your personal auto insurance policy and rideshare insurance protect you and others, depending on what phase you’re driving in. Here’s a breakdown of how insurance covers you during the three periods of ridesharing in Texas.

Period one: Offline

Your standard car insurance policy protects you when you’re not using your rideshare app. For instance, if you’re offline but intend to use the app shortly, your personal auto policy will apply until you open up the app to start accepting rides.

Period two: Online

If you’re online and waiting to accept a ride request, TNCs typically offer some protection. For example, Uber and Lyft give you $50,000 per person and $100,000 per accident in liability insurance and $25,000 in property damage insurance. But buying independent rideshare coverage gives you additional protection.

Period three: Driving to pick up or transport a customer

Both Lyft and Uber offer $1,000,000 in liability insurance coverage when you’re en route to or transporting a passenger. Each company may offer collision insurance and comprehensive coverage up to the actual cash value of your car, with a $2,500 deductible for each. You’ll have this coverage only if you also have it on your personal policy.

Does normal car insurance cover you while driving for ridesharing services?

A typical auto policy won’t cover you while you’re driving for a rideshare service in Texas. And if you don’t let your insurance company know you’re driving for a rideshare company, it could cancel your coverage or refuse to renew it.

Instead, Uber’s and Lyft’s insurance coverage may protect you depending on the phase of your trip. Many insurance companies also offer rideshare add-ons for additional protection.

Texas Insurance Requirements for Uber and Lyft Drivers

If you aren’t driving for rideshare, Texas requires you to have the following minimum coverages:

• $30,000 in bodily injury liability (BI) per person
• $60,000 in BI per accident
• $25,000 in property damage liability (PD) per accident

But coverage requirements increase for rideshare drivers. Texas requires rideshare drivers to have these minimum coverages:

• $50,000 in BI per person
• $100,000 in BI per accident
• $25,000 in PD when you’re online and available to accept a ride
• $1,000,000 in liability insurance when you’re transporting passengers

Note that Uber and Lyft both offer these coverages, but you might want higher limits, lower deductibles, or additional coverages like collision insurance to protect your car.

How Much Does Rideshare Insurance Cost in Texas?

You can generally get rideshare insurance as an add-on to your personal auto policy. While this coverage gives you valuable protection when you’re using your car for business purposes, it also comes at a cost — your car insurance premiums will likely increase when you add a rideshare endorsement.

Here’s what you might expect in terms of costs in Texas and how they compare to the national average, according to Compare.com data.

Texas rideshare drivers can expect to pay an average of $51 per month extra for rideshare coverage, which is higher than the national average of $34, according to Compare.com data.

The Cheapest Texas Rideshare Insurance Companies in 2024

While rideshare insurance in Texas costs more than the national average, that doesn’t mean you can’t find affordable coverage. As with standard auto coverage, rideshare insurance rates can vary dramatically depending on the car insurance company you choose. Comparing quotes from different insurers can help you find coverage that fits your budget.

Here’s what several top insurance companies charge to add rideshare coverage in Texas, sorted by lowest total monthly cost.

Clearcover offers the cheapest rideshare coverage, with an average endorsement cost of $8 per month and an average total monthly premium of $128, according to our data.

That said, the cost of your coverage could differ based on your driving history, age, location, and other factors, so getting multiple car insurance quotes is essential.

How to Add Rideshare Coverage to Your Car Insurance Policy

Adding rideshare coverage can vary by car insurance company. Sometimes, it’s as simple as contacting your existing insurer and requesting it (or logging into your account to add the coverage).

But if you’re shopping for a new policy with rideshare coverage, you can use an auto insurance comparison site to compare quotes from multiple Texas auto insurers. Once you find a budget-friendly option that meets your needs, take these steps to get coverage.

1. Gather your vehicle’s information, including your make, model, year, odometer reading, and VIN number.
2. Contact your insurance company or a local agent to apply for coverage.
3. Provide your vehicle information and personal information on your application.
4. Ask your agent for confirmation.
5. Review the terms of your policy, paying particular attention to potential exclusions.

Texas Rideshare Insurance FAQs

Here are some answers to commonly asked questions about Texas rideshare insurance if you’re still unsure about this coverage.

Does Texas require rideshare insurance?

Yes. Texas requires rideshare drivers to buy a specific amount of coverage, or that the transportation network company they’re driving for provides it. When you’re online in a rideshare app, you’ll need $50,000 per person and $100,000 per accident in bodily injury liability insurance and $25,000 in property damage insurance. When you’re transporting a passenger, you’ll need $1,000,000 in liability coverage.

What’s the best insurance company for Uber drivers?

It depends. The best rideshare insurance company for you depends on your unique needs, past driving record, and other factors. That said, Clearcover, State Farm, and GEICO offer the cheapest coverage on average for Texas rideshare drivers, according to Compare.com data.

Does rideshare insurance cover DoorDash?

It depends. Rideshare insurance might protect you when you’re using your car for delivery services like DoorDash. Once you’re in the delivery service period — between accepting a delivery request and marking it delivered, unassigned, or canceled — DoorDash offers some protection. Contact your auto insurer if you use DoorDash and have questions about your coverage.

Do you need to tell your insurance company if you’re a rideshare driver?

Yes, you could violate your policy’s terms if you don’t disclose that you’re a rideshare driver. Your insurance company could refuse to renew your policy or could cancel your coverage entirely.

What insurance companies offer rideshare coverage in Texas?

Several insurance companies offer rideshare coverage in Texas, including State Farm, GEICO, Allstate, USAA, and Clearcover. It’s a good idea to check with your insurance company to find out if it offers rideshare coverage.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources:

1. Uber, “Insurance to Help Protect You,” accessed August 27, 2024.
2. Lyft, “All Things Insurance, In One Place,” accessed August 27, 2024.
3. Insurance Information Institute, “Ridesharing and Insurance: Q&A,” accessed August 28, 2024.
4. Insurance Information Institute, “What Information Do I Need to Give to My Agent or Company?” accessed August 28, 2024.
5. Texas Department of Insurance, “Auto Insurance Guide,” accessed August 27, 2024.
6. State of Texas, “Insurance Code,” accessed August 27, 2024.
7. DoorDash, “Understanding Auto Insurance Maintained By DoorDash,” accessed August 27, 2024.