If you drive for Uber or Lyft in Houston, you must comply with Texas rideshare insurance laws. Coverage requirements change depending on whether your rideshare app is off, on, or you are actively transporting a passenger. Understanding these rules helps prevent claim denial and financial exposure.
For a complete overview of Houston rideshare coverage, see the Houston Rideshare Insurance for Uber & Lyft Drivers.
Texas Minimum Auto Insurance Requirements
All Houston drivers must carry at least:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 property damage liability per accident
These limits apply during personal vehicle use. Additional requirements apply once you activate a rideshare app.
Coverage During Rideshare Periods
App Off (Personal Use)
Your personal auto policy applies under standard Texas minimum limits.
Period 1: App On, Waiting for a Ride Request
Uber and Lyft provide contingent liability coverage during this period. However, personal policies typically exclude commercial use, which is why a rideshare endorsement is recommended.
Periods 2 & 3: Ride Accepted / Passenger Onboard
Once a ride is accepted and while transporting a passenger, Uber and Lyft provide up to $1 million in third-party liability coverage.
Do Houston Drivers Need Commercial Insurance?
Most Houston rideshare drivers do not need a standalone commercial auto policy. Instead, a rideshare endorsement added to a personal policy is typically sufficient for compliance.
Penalties for Non-Compliance
Driving without proper insurance coverage can result in claim denial, policy cancellation, fines, and personal financial liability following an accident.
Next Steps for Houston Drivers
- Confirm your insurer allows rideshare activity.
- Add a rideshare endorsement if available.
- Understand deductible differences during active trips.
- Review Texas statewide requirements.