The rideshare insurance system operates in distinct coverage periods, each triggering different policy limits. A Richardson rideshare accident lawyer can explain how these coverage phases work and identify which one applies to your situation. One period provides just $50,000 per person, while another activates a $1 million policy. Knowing when the $1 million policy applies—and when it doesn’t—helps you find all potential sources of compensation after a rideshare accident.
Key Takeaways for Uber/Lyft Insurance Coverage in Texas
- Period 0 coverage relies entirely on the driver’s personal auto insurance, which may deny coverage and cite rideshare exclusions even when apps are off, creating disputes over commercial activity.
- Period 1 provides only $50,000 per person coverage through rideshare companies when drivers have apps on but haven’t accepted rides, leaving catastrophic injury victims severely undercompensated.
- Period 2 and 3 activate the full $1 million primary liability policy the moment drivers accept ride requests and maintain coverage through passenger drop-off.
- App timestamp evidence becomes critical in coverage disputes, as insurance companies may misclassify accident periods to reduce payouts or deny claims entirely.
- Texas law requires rideshare companies to maintain specific coverage under Transportation Code Chapter 2402, but understanding which policy applies to your accident requires investigating the driver’s exact app status at the time of the collision.
How Uber/Lyft Coverage Periods Work in Texas
Coverage periods in Texas Uber/Lyft crashes require examining how Texas Transportation Code Chapter 2402 regulates transportation network companies. State law mandates specific insurance requirements based on driver activity at the time of the accident. These regulations create distinct coverage periods that determine which insurance policy responds to injury claims.
Traditional auto insurance covers personal driving. Commercial policies cover business vehicles. Rideshare insurance exists in a hybrid space between these categories, shifting coverage levels based on whether drivers are actively transporting passengers or simply making themselves available for ride requests.
Insurance adjusters might use period ambiguity to deny claims or reduce settlements. What you need to know is that they sometimes argue accidents occurred during lower coverage periods even when evidence suggests otherwise.
Period labels used by Uber/Lyft and insurers:
| Coverage Period | Driver App Status | Liability Coverage | Property Damage | When It Applies |
| Period 0 | Logged off completely | Personal policy only (typical TX minimums: $30k/$60k/$25k) | Personal policy (TX min often $25,000) | Driving for personal reasons, commuting, running errands |
| Period 1 | Logged in, waiting for ride request | $50,000 per person / $100,000 per accident contingent (typically primary if the driver’s personal policy denies or is insufficient) | $25,000 | Cruising for passengers, positioned in high-demand areas, available but no active ride |
| Period 2 | En route to pickup | $1,000,000 primary liability | Covered within the $1,000,000 CSL | Driver accepted a ride, heading to the pickup location |
| Period 3 | Passenger on board through drop-off | $1,000,000 primary liability | Covered within the $1,000,000 CSL | Passenger in vehicle, completing trip and drop-off |
UM/UIM is often provided by TNC policies during active trips; terms and limits vary by policy and date—confirm for your claim.
These coverage requirements reflect Texas Transportation Code Chapter 2402 minimums for transportation network companies operating in the state.
Your compensation after a rideshare accident depends entirely on identifying the correct coverage period. A serious injury requiring $300,000 in medical treatment might receive full coverage under Period 2 and 3’s $1 million policy. That same injury occurring during Period 1 hits a $50,000 coverage ceiling, leaving you potentially personally responsible for $250,000 in medical bills.
Period 0: Driver App Off (Personal Insurance Only)
Period 0 is when rideshare drivers use their vehicles for personal purposes, with apps completely logged off. A driver finishing their shift and heading home operates under Period 0. Any driving unrelated to rideshare work exists in Period 0.
During Period 0, only the driver’s personal auto insurance policy provides coverage. Texas requires minimum liability coverage of $30,000 per person and $60,000 per accident under Texas Transportation Code Section 601.072. These limits may prove insufficient for serious injury claims.
The critical issue affecting Period 0 accidents involves policy exclusions. Most personal auto insurance policies contain exclusions for commercial activity or transportation of passengers for compensation. Some personal carriers may attempt to deny coverage, citing rideshare exclusions—even if the app was off—leading to disputes over whether any aspect of driving remains connected to rideshare work.
When accidents occur during Period 0, victims face potential coverage denials if insurance companies classify the trip as rideshare-related. A driver might finish dropping off a passenger, log out of the app, and then cause an accident while driving to dinner. Insurance companies sometimes argue the entire evening remains connected to rideshare work in an attempt to deny personal policy coverage.
Period 1: App On, Waiting for Ride Request (Limited Coverage)
Period 1 begins the moment drivers log into the Uber or Lyft app and make themselves available for ride requests. Drivers might cruise through high-demand areas like Richardson’s CityLine district or Houston’s Galleria, hoping to receive requests quickly. They remain in Period 1 from the moment they log in until they accept a specific ride request.
This period creates the most coverage disputes in rideshare accident claims. During Period 1, Uber and Lyft provide contingent liability coverage of $50,000 per person, $100,000 per accident, and $25,000 for property damage. This contingent coverage typically becomes primary if the driver’s personal policy denies the claim or provides insufficient coverage.
Period 2 and 3: Ride Accepted Through Drop-Off (Full $1 Million Coverage)
Coverage switches the moment a driver accepts a ride request and continues en route to pickup through drop-off. During this trip window, $1,000,000 primary liability applies as a combined single limit covering both bodily injury and property damage. Uninsured and underinsured motorist coverage is often included; we confirm the exact terms for your date of loss.
Period 2 begins when drivers accept ride requests through their apps and continues while they navigate to pickup locations. Period 3 covers the time passengers remain in vehicles through completed drop-offs. Together, these periods represent the most comprehensive coverage in rideshare accidents.
The precise moment Period 2 begins matters tremendously in coverage disputes. You need a lawyer after these types of accidents because a driver heading to pick up a passenger at Dallas Love Field operates under Period 2 coverage. If that driver causes an accident one mile from the pickup location, the full $1 million policy responds. The passenger doesn’t need to be physically in the vehicle for Period 2 coverage to apply.
The transition from Period 3 back to Period 1 or Period 0 creates another coverage dispute zone. Drivers might complete a drop-off, then cause an accident seconds later while deciding whether to log out or wait for another request. Insurance companies may argue Period 3 ended at drop-off completion. These disputes require examining app records showing exact status changes.
How Insurance Companies Exploit Coverage Period Confusion
Insurance adjusters use coverage period complexity to minimize payouts after rideshare accidents. They might employ several tactics designed to confuse victims about coverage availability and shift accidents into lower-coverage periods.
Common insurance company tactics in rideshare accident claims include:
- Contacting victims immediately after accidents with low settlement offers before victims understand which coverage period actually applied or consult attorneys about claim value
- Claiming they cannot determine app status without extensive investigation while pressuring victims to accept quick settlements based on assumed Period 1 coverage
- Misrepresenting app timestamp evidence to argue drivers remained in Period 1 when records actually show Period 2 ride acceptance occurred before the accident
- Delaying production of rideshare company records, hoping victims accept inadequate compensation before obtaining evidence proving higher coverage applies
- Using comparative fault arguments under Texas law to reduce settlements by claiming victims share accident responsibility even in clear liability cases
Fighting app status misrepresentations requires independent evidence. Phone records from the driver’s device show app activity. Rideshare company databases contain definitive records of ride acceptances, pickups, and drop-offs. GPS data places drivers on routes to pickup locations.
Texas follows a modified comparative fault system under Texas Civil Practice and Remedies Code Section 33.001. This law reduces compensation by the victims’ percentage of fault and bars recovery if victims bear more than 50 percent responsibility for accidents.
Critical Steps After Rideshare Accidents in Texas
Texas law provides accident victims two years from the date of injury to file personal injury lawsuits under Texas Civil Practice and Remedies Code Section 16.003. This statute of limitations creates urgency for investigating claims and preserving evidence.
Essential actions to protect your rideshare accident claim:
- Write down everything you remember within 24 hours: time and location, what each driver said (especially about being “logged in”), and any witnesses or cameras you noticed.
- Save digital proof: screenshots of your ride receipt/map (if you were a passenger), in-app messages, payment confirmations, and any texts with the driver. If you weren’t a passenger, note any rideshare decals you remember seeing.
- File an in-app incident report with Uber/Lyft from your account and explicitly ask them to preserve trip data (GPS, timestamps, telematics, communications) for the date/time of the crash.
- Get a prompt medical evaluation and follow the treatment plan. Keep copies of visit summaries, imaging, prescriptions, and a simple symptom journal.
- Create an evidence folder: any photos you already have, dashcam footage, repair estimates, and a quick diagram of the intersection if you didn’t photograph it.
- Track every cost: medical bills, copays, pharmacy receipts, mileage to appointments, time off work (with pay stubs/HR notes), and any paid caregiver or rides.
- Limit statements: notify your own insurer, but avoid recorded statements or broad medical authorizations until you’ve gotten legal advice.
- Contact a rideshare-experienced attorney within days so they can send preservation/spoliation letters for app data, nearby business/dashcam video, and vehicle EDR info before it’s lost.
The driver’s phone contains critical evidence about app status at the time of the accident. However, this evidence disappears quickly. Rideshare drivers might delete apps, clear data, or reset phones after accidents. Legal representation becomes essential for preserving app evidence through preservation letters that carry legal weight.
Why Rideshare Accident Claims Require Legal Experience
The multi-period insurance system creates complexity beyond typical auto accident claims. Victims face multiple insurance companies with conflicting coverage positions, and rideshare companies maintain teams of lawyers protecting their interests.
Attorneys with experience in rideshare accident claims understand how to obtain app status evidence from reluctant rideshare companies. Personal injury settlements are calculated based on the ability to prove coverage period and fault, and these attorneys recognize when insurance companies misrepresent applicable coverage periods and possess tools to challenge these misrepresentations.
Attorneys might also work with medical specialists, vocational experts, economists, and life care planners to document damages thoroughly. Expert testimony establishes these future costs, preventing insurance companies from limiting compensation to immediate medical bills only.
FAQ for Uber/Lyft Insurance Coverage in Texas
What Happens If the Uber Driver’s App Was Off When They Hit Me?
When rideshare drivers cause accidents when they are completely logged out of apps, their personal auto insurance policies provide the only available coverage. Mistakes to avoid after such crashes include assuming the driver’s personal insurance will automatically cover your losses. However, some personal carriers may attempt to deny coverage, citing rideshare exclusions—even if the app was off—leading to disputes. Texas law requires minimum liability coverage of $30,000 per person, but serious injuries often exceed these limits substantially. If the driver’s personal insurance denies coverage or provides insufficient limits, you might pursue compensation through your own underinsured motorist coverage.
Does the $1 Million Policy Cover My Medical Bills as a Passenger?
The $1 million primary liability policy during Periods 2 and 3 covers injuries to passengers, other drivers, pedestrians, and anyone else injured during rideshare trips. However, this policy must be divided among all injured victims when accidents involve multiple parties. Your medical bills, lost wages, pain and suffering, and other damages all fall under this policy.
Can Uber Deny My Claim If the Driver Was Between Rides?
Insurance companies frequently attempt to deny claims or limit payouts when drivers were logged in but hadn’t accepted specific ride requests—Period 1 status. They may offer minimal settlements based on Period 1’s $50,000 per person limits, even when evidence might support arguments that Period 2 coverage applies. Legal representation becomes critical for challenging wrongful period classifications that unfairly limit your compensation.
How Do I Prove What Period the Driver Was In During the Accident?
Proving coverage period status requires multiple evidence sources. The driver’s phone records show app activity, including login times and ride acceptances. Rideshare company databases contain definitive records of all driver activity, including timestamps for period transitions. GPS data places drivers on routes consistent with specific periods. However, accident victims rarely can access this evidence without legal assistance.
What If the Other Driver Was Using Uber But Won’t Admit It?
Many rideshare drivers initially deny working for Uber or Lyft after causing accidents. However, visible rideshare decals or signage in vehicles suggest commercial activity. Phone records subpoenaed during litigation may reveal rideshare app installations. Rideshare companies maintain records of all drivers affiliated with their platforms.
Contact AMS Law Group for Richardson and Houston Rideshare Accident Claims
AMS Law Group fights for fair compensation in rideshare accident claims throughout Richardson and Houston. We obtain the app status evidence that insurance companies try to hide. We challenge wrongful period classifications that unfairly limit recovery. We pursue compensation through every available insurance policy, including personal coverage, Period 1 contingent policies, and Period 2 and 3’s $1 million protection.
Our team understands Texas rideshare regulations under Transportation Code Chapter 2402. We know how Richardson intersections and Houston highways create rideshare accident risks. We’ve handled claims involving all coverage periods and understand how to build strong cases regardless of which coverage applies to your accident.
Don’t let insurance companies use coverage technicalities to deny your claim or reduce your settlement. Contact AMS Law Group today at (888) 960-8363 for Richardson accidents or (713) 429-1555 for Houston collisions. We offer free consultations to evaluate your rideshare accident claim, explain which coverage period applies, and outline strategies for pursuing maximum compensation. Our team works on a contingency fee basis—you pay nothing unless we recover compensation for your injuries.
Call now to schedule your free case evaluation. We’re available 24/7 and provide consultations in English, Spanish, and Arabic. Let AMS Law Group start fighting for your rights today.