Driving For Uber: Texas Insurance Requirements And Tips

If you're considering becoming an Uber driver in Texas, it's important to understand the insurance requirements and how they vary depending on whether you're driving for personal use or for a transportation network company (TNC) like Uber. Texas law requires rideshare drivers to carry a higher level of insurance than those who only drive for personal trips, and most car insurance companies in the state will require special coverage if you're driving for a TNC. In this paragraph, we'll outline the key insurance requirements and considerations for Uber drivers in Texas, so you can ensure you're fully protected and compliant with the law.

Uber's insurance requirements for Texas drivers

Uber drivers in Texas are required to have specific insurance coverage to operate legally. This includes both coverage from Uber's insurance provider and the driver's own personal auto insurance. The insurance requirements for Uber drivers in Texas are outlined below:

Period 0:

When the rideshare app is off, and the driver is using their car for personal purposes, they need to ensure their personal auto insurance meets the Texas minimums. The state-mandated minimum liability coverage in Texas is "30/60/25", which translates to up to $30,000 for bodily injury per person, $60,000 for total bodily injury per accident, and $25,000 for property damage.

Period 1:

When the driver has the ridesharing app turned on and is waiting for a ride request, Texas law requires increased levels of liability coverage. The coverage limits during this period are $50,000 per person and $100,000 per accident for bodily injury, and $25,000 per accident for property damage. Uber provides contingent liability coverage during this period, which is dependent on the driver's personal insurance.

Periods 2 and 3:

Period 2 refers to the time when the driver is en route to pick up a passenger, and Period 3 refers to when the passenger is in the car. During these periods, the required liability coverage increases significantly to $1,000,000 total for all injuries or property damage. Uber provides this coverage, which also includes uninsured or underinsured motorist coverage.

It is important to note that Uber drivers in Texas should also consider the financial implications of their insurance choices and explore options like car repair and medical benefits offered by insurers. Additionally, Uber offers Optional Injury Protection, which covers disability payments, medical expenses, and survivor benefits for drivers and their families in case of an accident.

Personal auto insurance for Uber drivers in Texas

If you're considering becoming an Uber driver in Texas, it's important to understand the insurance requirements. Uber drivers in Texas need to maintain specific insurance coverage to operate legally, which includes both coverage from Uber's insurance provider and their own personal auto insurance. This is to ensure protection for both the driver and riders.

Phases of Uber Driving

There are four distinct periods or phases of ridesharing to consider when it comes to insurance:

• Period 0: The ridesharing app is turned off, and you're using your car for personal purposes. During this time, you only need to meet the minimum auto insurance requirements in Texas, which are typically $30,000 for bodily injury liability coverage per person and $60,000 per accident.
• Period 1: You have the app turned on and are available to accept rides but are between rides. Uber provides contingent liability coverage during this period, which is dependent on having valid personal insurance. This coverage protects you in case of an accident while waiting for a ride request.
• Period 2: You have accepted a ride request and are en route to pick up the passenger. At this point, Uber's insurance coverage kicks in, providing comprehensive protection, including third-party liability coverage of up to $1 million. Additionally, Uber offers contingent coverage for damage to your vehicle, which is subject to a deductible.
• Period 3: You have picked up the passenger and are transporting them to their destination. Uber's insurance policy continues to provide coverage for injuries and property damage during this period.

Personal Auto Insurance Options

As an Uber driver in Texas, you have several options for personal auto insurance:

• Rideshare Insurance: This type of insurance is specifically designed for rideshare drivers and fills the coverage gaps between your personal auto insurance and Uber's provided coverage. It ensures that you are protected at all times, even when you are waiting for ride requests with your app turned on.
• Commercial Insurance: If you are a commercial driver using a commercial vehicle, such as a licensed for-hire vehicle or taxi, you must have your own commercial insurance. This is separate from your personal auto insurance and is required to drive with Uber.
• Optional Injury Protection: In some states, Uber offers Optional Injury Protection, which covers additional medical expenses and lost wages for drivers and their family members in the event of an accident. This coverage is available even if you are not at fault.

It is important to note that insurance requirements and rates can vary, so it is recommended to consult with insurance providers and understand the specific requirements in Texas to ensure you have the necessary coverage to drive for Uber legally.

Texas state law requirements for rideshare drivers

Texas has established comprehensive laws for rideshare companies, their drivers, and their vehicles. These laws are designed to protect the safety and security of passengers and other motorists.

Rideshare drivers in Texas must meet several requirements. Firstly, they must have a valid Texas driver's license, which has been issued at least one year prior to applying to drive for a rideshare company. The driver's license must not have any major violations within the last three years, such as DUI or reckless driving. Minor violations, such as speeding tickets, are acceptable.

Secondly, rideshare drivers in Texas must adhere to specific insurance requirements. They must maintain valid personal auto insurance that meets the state's minimum liability coverage requirements. This includes bodily injury liability (BIL) coverage of $50,000 per person and $100,000 per accident, as well as property damage liability (PDL) coverage of $25,000 per accident. Additionally, they must have rideshare insurance or a rideshare endorsement on their policy, which covers them during periods when they are logged into the app but not carrying passengers, and when they have passengers in the vehicle.

Thirdly, the vehicles used by rideshare drivers in Texas must meet certain standards and pass initial and recurring inspections. The vehicles must have four doors and be able to transport a minimum of four passengers, excluding the driver. Approved models typically include sedans, minivans, SUVs, and crossovers. The vehicles cannot be more than ten years old, with some exceptions for newer high-end luxury vehicles.

Furthermore, rideshare drivers in Texas are subject to background checks, which are typically repeated on a yearly basis to maintain eligibility. Maintaining a clean background check history is essential for rideshare drivers in the state.

It is also important to note that rideshare drivers in Texas can only accept passengers who have pre-arranged their ride through the app, website, or other systems provided by the rideshare company. They are not permitted to accept hails or walk-up requests on the street. Additionally, rideshare services must provide passengers with the driver's photo, name, and vehicle information before they get into the car.

Understanding insurance coverage in the event of an accident

Firstly, if you are driving for Uber, you are required to carry personal auto insurance. This covers you while you are offline and must be maintained at mandatory minimum limits. Your personal insurance will also cover repairs to your car when you are en route to or on a trip if it includes comprehensive and collision coverage.

Secondly, Uber provides insurance coverage for its drivers, which comes into effect when the driver is online and available for a trip. This coverage is contingent on the driver's personal insurance and provides third-party liability coverage in the event of an accident. Uber's insurance covers the cost of injuries or damage, including $50,000 per person and $100,000 per accident for injuries. This coverage also includes accidents caused by an uninsured or underinsured driver.

In addition, Uber drivers in Texas must maintain specific insurance coverage to operate legally, including both coverage offered by Uber's insurance provider and their own personal auto insurance. Texas law requires rideshare drivers to carry a higher level of insurance than those driving for personal use, with minimum liability coverage of $30,000 for bodily injury per person, $60,000 for bodily injury in total, and $25,000 for property damage.

Furthermore, Uber offers Optional Injury Protection, which covers medical expenses, disability payments, and survivor benefits for the driver and their family members in the event of an accident. This coverage is available in most US states and can be purchased separately.

Finally, it is important to note that if you are in an accident while driving for Uber, you should report it through the Driver app and take photos of any damage to the vehicles involved and the accident location. You should also exchange contact and insurance information with the other drivers and riders involved. Understanding the insurance coverage available and seeking legal guidance can help ensure that you receive the necessary compensation for any injuries or damages sustained.

Additional insurance considerations for Uber drivers in Texas

Uber drivers in Texas have varying insurance coverage requirements based on their app status and period of rideshare driving. It is important to understand the insurance coverage provided by Uber and how it applies in the event of an accident.

Understanding Uber's Insurance Coverage

Uber provides insurance coverage for both their drivers and passengers, but this coverage depends on the driver's status at the time of the accident. There are three periods defined by Uber: offline, waiting for a ride request, and on a trip. During the offline period, when the driver is not actively using the Uber app, their personal insurance policy is the primary coverage. Uber's insurance coverage comes into effect if the driver's personal insurance doesn't provide sufficient coverage.

Texas Law Requirements

Texas law requires rideshare drivers to carry a higher level of insurance than those who only drive for personal trips. The state mandates a minimum liability coverage of 30/60/25, which means up to $30,000 for bodily injury to any one person involved in an accident, a total of $60,000 for bodily injury for everyone injured, and up to $25,000 for property damage. Texas law also obligates rideshare companies like Uber to maintain higher insurance coverage to protect people or property that might be affected by the driver's actions while operating for the company.

Personal Auto Insurance

In addition to Uber's insurance policy, personal auto insurance is essential for Uber drivers in Texas to cover incidents when not providing rideshare services. This insurance should meet the minimum state requirements and may include tailored options like car repair and medical benefits.

Optional Injury Protection

In most US states, Uber offers Optional Injury Protection, which covers your additional medical expenses if you're hurt in an accident. This coverage is available to you and your family members and includes disability payments and survivor benefits.

Commercial Insurance

If you are a commercial driver using a commercial vehicle, such as a licensed for-hire vehicle or taxi, you must have your own commercial insurance to drive with Uber. This insurance must meet the mandatory minimum limits, and you must provide proof of your insurance before driving with Uber.

Frequently asked questions