You were hit by an Uber or Lyft driver. The crash happened, you’re hurt, and now you’re learning that figuring out who pays is more complicated than a standard car accident. The driver has personal insurance. Uber or Lyft has insurance. Your own policy may be involved. And which coverage applies depends entirely on what the driver was doing on the app at the exact moment of impact. This is the coverage period framework, and it controls your case.
How Uber and Lyft Structure Their Insurance: The Three Periods
Texas Transportation Code Chapter 2402 governs Transportation Network Companies (TNCs) like Uber and Lyft. Under Tex. Transp. Code § 2402.061, the law requires TNCs to maintain specified minimum insurance coverage that varies based on a driver’s activity status on the platform. That activity falls into three distinct periods, each with its own coverage rules. There is also a Period 0, which exists before any TNC coverage applies at all.
Period 0: The App Is Off
When the driver’s rideshare app is completely off, Uber and Lyft have no involvement in the crash. The driver is just another motorist on the road, and only their personal auto insurance applies. This matters because most personal auto policies exclude commercial activity, but if the app is off, that exclusion is irrelevant — the driver was not doing anything commercial at that moment.
The problem with Period 0 cases is that personal auto coverage is often thin. Texas requires minimum liability limits of only $30,000 per person and $60,000 per accident. Many drivers carry no more than state minimum. If your damages exceed the driver’s personal policy, you will need to look to your own underinsured motorist (UIM) coverage.
Period 0 cases can still involve disputes about whether the app was actually on. Uber and Lyft both maintain timestamped app activity records. Obtaining those records through litigation discovery or a preservation demand is essential early in the case.
Period 1: App On, No Ride Accepted
The driver has logged into the app, is available for rides, but has not yet accepted a trip request. Under Tex. Transp. Code § 2402.061(a), TNCs must provide contingent liability coverage during Period 1 of at least $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $25,000 for property damage.
This coverage is contingent, meaning it only applies if the driver’s personal auto policy does not cover the loss or is insufficient. In practice, most personal auto policies exclude commercial driving, so the TNC coverage often functions as the practical source of recovery, even though it is structured as contingent coverage.
Period 1 is where Uber and Lyft fight hardest. They argue that a driver waiting for a ping is essentially off-duty, and they look for any reason to push the classification down to Period 0. App logs and GPS data, obtained early, are the evidence that keeps the case in Period 1.
Period 2: En Route to Pick Up the Passenger
The moment the driver accepts a trip request and begins driving toward the rider, the $1 million policy activates. Under Tex. Transp. Code § 2402.061(b), once a TNC driver has accepted a ride, the company must carry at least $1,000,000 in combined single-limit liability coverage per incident. TNC policies typically include up to $1 million in UM/UIM coverage during this period, though the exact terms depend on the policy.
Period 2 begins at acceptance and runs until the passenger enters the vehicle. If the Uber driver was heading to pick you up when they hit you as a pedestrian, a cyclist, or another motorist, Period 2 applies and the $1 million policy is in play. This is true even though no passenger was in the car yet.
Period 3: Passenger Is in the Vehicle
Period 3 covers the ride itself, from the moment the passenger gets in until the trip is completed and the rider exits. The same $1 million combined single-limit policy that applies during Period 2 continues through Period 3. If you were a passenger in an Uber or Lyft when the driver caused a crash, or when another driver hit your rideshare vehicle, Period 3 is your starting point.
Period 3 also raises the question of third-party liability. If another driver caused the crash while you were a passenger, that driver’s liability insurance is the first pocket of recovery. The Uber or Lyft UM/UIM coverage then backs up your recovery if the at-fault driver is uninsured or underinsured.
The Coverage Table: Period by Period
| Period | Driver Status | Liability Coverage | UM/UIM Coverage |
|---|---|---|---|
| Period 0 | App off | Driver’s personal policy only | Driver’s personal policy only |
| Period 1 | App on, no ride | $50K/$100K/$25K (contingent) | Not required by statue; may be unavailable depending on the policy. |
| Period 2 | En route to pickup | $1,000,000 CSL | $1,000,000 |
| Period 3 | Passenger on board | $1,000,000 CSL | $1,000,000 |
Who Actually Issues the Insurance: Uber, Lyft, and Their Carriers
Uber and Lyft do not write their own insurance. They contract with admitted carriers who issue policies behind the scenes. Knowing who the actual insurer is matters because that company — not Uber or Lyft’s claims team — controls the money.
Uber has historically used carriers such as James River Insurance Company, but its insurance partners have changed over time and can vary by state and policy period. Lyft has used multiple carriers, including Zurich American Insurance Company and others, depending on the state and policy period
Beyond the TNC-issued policy, Uber drivers may also carry commercial rideshare endorsements on their personal auto policies from carriers like USAA, Progressive, or State Farm. These endorsements can provide additional or gap coverage, particularly during Period 1 when the TNC coverage is limited.
Identifying the correct insurer requires getting the driver’s insurance declarations, the TNC’s insurance information, and any rideshare endorsement on the driver’s personal policy. An attorney who issues the right preservation and disclosure demands in the first days of the case gets this information faster than one who waits.
UM/UIM Stacking in Texas Rideshare Cases
Texas does not prohibit UM/UIM stacking by statute. Whether policies stack depends on the anti-stacking language in each individual policy. In a rideshare crash, multiple UM/UIM policies may be available: the TNC’s $1 million UM/UIM policy (Periods 2/3), your own personal auto UM/UIM policy, and potentially a rideshare endorsement on the driver’s personal policy.
If the at-fault driver is underinsured, your lawyer’s job is to identify every UM/UIM policy that applies and determine whether each contains anti-stacking language. Even where strict stacking is barred, you may still be able to access multiple policies in sequence depending on policy language and Texas case law interpreting anti-stacking provisions. In catastrophic cases, the combination of the TNC’s $1 million UM/UIM and your own UM/UIM policy can be the difference between a full recovery and an insufficient one.
Do not sign any release, accept any payment, or give any recorded statement to any insurer until an attorney has mapped every potential UM/UIM policy in your case. Settling prematurely with one carrier can waive your rights against others.
The Corporate Structure Behind the Driver
Uber does not employ its drivers. The operating entity in Texas is Rasier LLC, a wholly owned subsidiary of Uber Technologies, Inc. Lyft drivers work under Lyft, Inc. directly. Both platforms classify their drivers as independent contractors, and this classification is the foundation of their primary liability defense.
Under Tex. Labor Code § 101.001 and related common-law tests, the independent contractor relationship is often used to argue against vicarious liability. But that protection is not absolute. Where a driver is negligently selected (a history of serious traffic violations that a background check would have revealed), or where the platform’s own negligence contributed to the crash, there are theories of direct liability against the TNC entity itself.
Texas also imposes negligent entrustment liability on anyone who allows an incompetent driver to use a vehicle they own or control. The application of that theory to TNC platforms is an evolving area of law. An experienced rideshare plaintiff’s attorney keeps current on that litigation landscape.
Every Pocket of Recovery
A lawyer who only looks at the TNC’s $1 million policy is leaving money on the table. The complete recovery picture in a rideshare case includes, from largest to smallest:
- TNC liability policy ($1M, Periods 2/3). The floor for serious injuries when the driver was on an active trip. This is the largest single source and should be the anchor of your demand.
- TNC UM/UIM policy ($1M, Periods 2/3). Available when a third-party driver caused the crash and is underinsured, or hit-and-run. Applies whether you are a passenger, pedestrian, or another driver.
- At-fault third party’s liability policy. If another driver caused the crash while you were a Lyft or Uber passenger, their policy is the first line of recovery.
- Driver’s personal rideshare endorsement. Some drivers carry voluntary endorsements that provide additional coverage beyond the TNC minimums, particularly in Period 1 gaps.
- Your own UM/UIM policy. Separate from the TNC’s UM/UIM. Applies when underinsured at-fault drivers leave a shortfall.
- Your own MedPay or PIP coverage. Pays medical bills regardless of fault. Activates faster than any liability claim and should be used immediately.
- Health insurance subrogation management. Not a source of additional recovery, but managing your health insurer’s subrogation claim correctly keeps more of any settlement in your pocket.
Evidence That Disappears Immediately
The app logs are often the most critical evidence in the case. Uber and Lyft both maintain timestamped records of every driver’s status: when the app was opened, when a trip was accepted, when the GPS placed the driver at each location, and when the trip ended. These logs determine which period applies and eliminate disputes about what the driver was doing at the moment of the crash.
The retention window for these records is not published, but litigation hold letters sent within the first days of a case are the only reliable way to stop routine data destruction. A rideshare plaintiff’s lawyer sends a preservation demand to both the TNC and the driver as soon as possible, ideally within the first few days of the case. That letter triggers a legal obligation to preserve the data and creates a spoliation argument if the records are later unavailable.
Other evidence that needs to be secured immediately:
- Dashcam footage from the driver’s vehicle (many rideshare drivers mount dashcams)
- Traffic camera and intersection surveillance footage (cities typically overwrite within 30 days)
- Witness contact information from the scene
- The driver’s full driving history and background check record held by Uber or Lyft
- The driver’s prior trips that day (fatigue is a factor in rideshare crashes; hours-on-platform data matters)
- The driver’s device location data, which may differ from the app’s reported GPS
What the Defense Will Argue
Uber and Lyft’s insurers are experienced and well-resourced. They run the same playbook in almost every case.
Period reclassification. The first argument is almost always that the driver was in a lower coverage period than you claim. They will review the app logs and look for any gap or ambiguity that supports Period 0 or Period 1 classification. A lawyer who obtained and preserved the full app log at the start of the case is positioned to defeat this argument with the insurer’s own records.
Independent contractor shield. They will argue that Uber or Lyft bears no liability for the driver’s negligent operation because the driver is not an employee. This is true for vicarious liability claims, but it does not defeat claims under the TNC’s statutory insurance obligation or claims for the TNC’s own negligence in driver screening.
Comparative fault. Texas follows modified comparative fault under Tex. Civ. Prac. & Rem. Code § 33.001. If they can push your percentage of fault to 51 percent or higher, you recover nothing. Expect the insurer to look for any traffic violation on your part, any pre-impact behavior, or any distraction they can attach to you.
Causation attacks on your injuries. They will order every medical record you have, look for pre-existing conditions, and hire a defense medical expert to attribute your injuries to prior health problems rather than the crash. Consistent, documented medical treatment from the day of the crash forward is your answer to this argument.
Mistakes That Damage Your Case in the First Week
Do not give a recorded statement to any insurance company before speaking with a lawyer. This includes your own insurer. Adjusters are trained to use your words against you, and what sounds like a neutral answer to a factual question can be used later to argue you were not seriously hurt, were distracted, or did not seek treatment because you did not feel injured.
Do not post about the accident on social media. Defense investigators monitor accounts routinely. A single photo, check-in, or comment that suggests you were active or mobile after a crash they know caused serious injuries will be used in depositions and at trial.
Do not sign a medical authorization sent by the insurer. Their authorization is typically broad enough to access your entire medical history, not just the records related to this crash. Your attorney will provide a limited authorization that covers only what is legally required.
Seek medical treatment immediately and consistently. Gaps in treatment are the single most common tool defense lawyers use to argue that your injuries were not caused by the crash or resolved before you claim. If you are hurt, see a doctor the same day or the next morning, and keep every follow-up appointment.
What to Do Right Now
If you were injured in an Uber or Lyft crash in Texas, the actions you take in the next 48 hours have a direct effect on your recovery. Report the crash through the Uber or Lyft app to create a timestamped record of the event within the platform’s own system. Get the driver’s full name, license plate, insurance information, and personal auto carrier. Take photographs of the vehicles, the scene, and your visible injuries. Get the names and contact information of every witness.
Call a Texas rideshare injury attorney the same day. The preservation demands go out within hours, not weeks. The coverage period analysis happens before the insurer has time to build its version of events. The app logs get locked before the routine purge cycle.
Why These Cases Require a Lawyer Who Has Done This Before
Rideshare injury cases involve overlapping insurance policies, corporate entities that are not directly liable, statutory frameworks under the Texas Transportation Code, and insurers whose adjusters handle nothing but TNC claims. A general personal injury lawyer can manage a straightforward car accident claim without much difficulty. A rideshare case is not that.
The coverage period determination alone requires understanding the Texas TNC statute, reading app-generated logs that look nothing like a standard accident report, and arguing against an insurer who will fight hard for Period 1 when you are entitled to Period 2. The UM/UIM stacking analysis requires reading multiple policies and knowing which anti-stacking provisions are enforceable under Texas law. The corporate structure analysis requires knowing that Rasier LLC, not Uber Technologies, Inc., is the proper defendant in many Texas cases and what that means for service of process and venue.
These are not issues a lawyer figures out on the fly in your case.
How Varghese Summersett Handles Rideshare Injury Cases
Varghese Summersett’s personal injury attorneys handle Uber and Lyft injury cases throughout Texas, including Fort Worth, Dallas, Southlake, and Houston. When you call us, we start by mapping the coverage periods using the app data, identifying every insurance layer available, and sending preservation demands the same day. We deal directly with James River, Zurich, and the other carriers who actually write these policies.
We do not settle these cases before we know the full scope of your injuries, the complete coverage picture, and the full range of your economic and non-economic damages. Our fee is contingent, meaning you pay nothing unless we recover for you.
If you or someone in your family was injured in an Uber or Lyft crash in Texas, call us at 817-203-2220 or contact us online for a free consultation. The sooner we hear from you, the more options you have.
