If you drive for Lyft in Houston, your insurance coverage changes depending on whether the app is off, on, or you are actively transporting a passenger. Understanding how Lyft’s protection works — and where coverage gaps may exist — is essential for financial protection.
For a complete overview of Houston rideshare insurance, see the Houston Rideshare Insurance for Uber & Lyft Drivers.
Lyft Insurance Periods Explained
App Off (Personal Use)
When the Lyft app is off, your personal Texas auto insurance policy applies.
Period 1: App On, Waiting for a Ride Request
While logged into the Lyft app and waiting for a ride request, Lyft provides contingent liability coverage, generally including:
- $50,000 bodily injury per person
- $100,000 bodily injury per accident
- $25,000 property damage per accident
This applies only if your personal insurer denies the claim due to commercial use exclusions.
Periods 2 & 3: Ride Accepted / Passenger Onboard
Once a ride is accepted and while transporting a passenger, Lyft provides up to $1 million in third-party liability coverage. Contingent comprehensive and collision coverage may apply if you maintain those coverages on your personal auto policy.
Vehicle Damage Coverage
Lyft’s contingent comprehensive and collision coverage applies only during active rides and typically includes a deductible. Coverage does not usually apply during Period 1 without a rideshare endorsement.
Common Coverage Gaps
- No collision coverage during Period 1 without endorsement
- Higher deductibles under Lyft’s contingent policy
- Potential claim coordination delays
Should Houston Lyft Drivers Add Rideshare Insurance?
Yes. A rideshare endorsement bridges the gap between personal coverage and Lyft’s contingent policy, reducing risk of claim denial or policy cancellation.
Next, compare pricing in the Houston Rideshare Insurance Cost Guide or review Uber Insurance Coverage in Houston.