Texas adopted statewide TNC (Transportation Network Company) rules in 2017 (Texas Occupations Code Chapter 2402). Uber and Lyft must provide coverage during specific phases — but the gap before a ride is accepted is the driver's problem.
Texas TNC minimum coverage
- App on, awaiting request: $50,000 BI per person / $100,000 per accident / $25,000 PD
- Ride accepted through drop-off: $1,000,000 combined single limit liability + UM/UIM
The personal policy exclusion
Every standard Texas personal policy excludes coverage while you're operating for a TNC. Without an endorsement, you have zero physical damage coverage and a contingent (often inadequate) liability situation in Phase 1.
The rideshare endorsement
Most major Texas carriers offer a rideshare endorsement for $10–$25/month that extends your personal coverage into Phase 1. A few extend further into Phase 2/3 (above the TNC's deductible).
Food delivery is different
DoorDash, Uber Eats, Instacart, and Amazon Flex are not regulated as TNCs and often provide only excess liability — no physical damage. A commercial auto policy or delivery endorsement is usually required for full coverage.
Disclosure to your insurer
Not disclosing rideshare or delivery use is the single fastest way to have a claim denied. Tell your agent — the endorsement is usually cheap relative to the risk.
Frequently asked questions
Does Texas require special insurance for Uber and Lyft drivers?
Yes. Texas Occupations Code §2402 sets minimum coverage levels for TNCs during app-on and ride phases.
Does my personal auto policy cover me while driving for Uber?
Standard personal policies exclude rideshare. A rideshare endorsement is required to extend coverage.
This article is for general information only and is not legal or tax advice. For guidance specific to your situation, talk to a licensed Texas insurance agent. Ready to put it into practice? Get a free quote or request a policy review.