Rideshare insurance in Texas

The two periods Texas law defines

Chapter 1954 requires primary auto insurance that covers you while you're logged on to the app and while you're on a "prearranged ride." A prearranged ride starts when you accept a request and ends when the last rider gets out. The coverage can come from your own policy, the TNC's policy, or a combination.

What your personal auto policy can exclude

Section 1954.151 lets a personal auto insurer exclude any loss while you're logged on or on a prearranged ride. That can include liability, PIP, uninsured/underinsured motorist, medical payments, comprehensive, and collision. The law doesn't require a personal policy to cover you in either period, but an insurer can choose to, in the policy or by endorsement.

TDI says most personal auto policies don't cover ride sharing. Some companies sell policies or add-ons for rideshare drivers, but TDI notes these may cover only part of your driving time, such as before you pick up a passenger, and some cover damage to others but not to you or your car.

Where the gaps usually are

Nothing in Chapter 1954 requires collision or comprehensive for your own car in either period. If your car is damaged while the app is on, whether it's covered depends on your personal policy, any rideshare endorsement, and what the TNC's policy offers. TDI notes that some TNCs also cover damage to your car.

When the app is off, you're a personal driver again and your normal policy applies. Driving with the app on and no endorsement can leave a gap, because the TNC-period minimums are lower then and your personal insurer may exclude that time.

What the TNC must tell you, and what you must carry

Before you can accept a ride, the TNC must disclose in writing the insurance it provides, including coverage types and limits, and warn that your personal policy may not cover you while you're logged on or on a ride (Section 1954.101).

You must carry proof of insurance meeting both periods' requirements whenever you're using the app. After a crash, you must show it to anyone directly involved, insurers, and an investigating officer, and say whether you were logged on or on a ride (Section 1954.056).

If your own policy has lapsed or falls short, the TNC must provide the required coverage from the first dollar of a claim, and its coverage can't depend on your personal insurer denying the claim first (Sections 1954.054 and 1954.055).

After a crash: the app's logs matter

Because coverage turns on timing, the law requires the TNC and its insurer to share the exact times you logged on and off during the 12 hours before and after the crash, plus a clear description of their coverage, exclusions, and limits (Section 1954.154).

If your car has a loan and the TNC's insurer pays a claim from a prearranged ride, it pays the repair shop directly or issues the payment jointly to you and your lender (Section 1954.155).

Deliveries are a different question

Chapter 1954 covers people rides. If you deliver food or packages, TDI says some personal policies may cover a paid delivery and others exclude business driving entirely. TDI's advice is to tell your insurer you're driving for business, because a company may deny a claim if you don't, and to ask whether you can add delivery coverage or need a commercial policy.

Questions to ask before you log on

Read the TNC's disclosure alongside your own policy, as TDI suggests. Telling your insurer you drive for an app is the safer course; hiding it can put a claim at risk.

• Does my policy exclude driving for a TNC, and do you offer a rideshare endorsement?
• Which periods does the endorsement cover: app on, ride accepted, rider in the car?
• Does it cover damage to my own car in each period, and with what deductible?
• What are the TNC's limits and deductibles, per its written disclosure?
• If I also deliver, is that covered, or do I need something else?