Texas rideshare liability and insurance rules

Liability in rideshare accidents in Texas is determined by the driver’s status within the app at the time of the incident. Under the Transportation Network Companies Act, drivers are classified as independent contractors rather than employees, which generally prevents passengers from suing Uber or Lyft for a driver’s individual negligence, though companies may still be held liable for negligent hiring or screening.

Insurance coverage shifts based on app activity: personal insurance applies when the app is off, a contingent policy is active while waiting for a ride, and a $1 million policy applies when en route to or carrying a passenger. Texas utilizes a single statewide regulatory framework for all Transportation Network Companies to ensure uniform standards for driver screening and insurance across the state.