Rideshare insurance in Texas costs $6-$20 per month in addition to the cost of a personal auto insurance policy, in most cases. This is consistent with the national average price of ridesharing insurance. Unlike most types of personal auto insurance, the cost of rideshare coverage does not vary widely by location.
Currently, eight major insurance companies offer rideshare insurance in Texas: Allstate, GEICO, Farmers, Progressive, USAA, State Farm and Mercury, plus MetLife but just for Lyft drivers. Liberty Mutual does not offer policies labelled as “rideshare insurance” in Texas but will extend your personal auto insurance to cover you while driving for a rideshare company. You must tell them you will be driving for a rideshare company and estimate the additional mileage you will be putting on your car as a result.
The minimum coverage amounts you need and what your rideshare company may provide change through the four standard “periods” of a rideshare driver’s experience — when you’re offline, available for a ride request, en route to a pickup, and on a trip with passengers in the car.
While your rideshare app is off, you need at least Texas’s minimum insurance coverage: $30,000 of bodily injury liability coverage per person, up to $60,000 per accident, plus $25,000 of property damage liability coverage per accident. But Texas law requires ridesharing drivers to carry additional liability coverage whenever their rideshare app is on, whether they have passengers or not.
While your ridesharing app is on and you are waiting to accept a ride request, Texas law mandates:
- $50,000 of bodily injury liability coverage per person/$100,000 per accident
- $25,000 of liability coverage for property damage per accident
You may need to buy this increased coverage yourself, or your rideshare company may provide it. In Texas, both Uber and Lyft provide "contingent" driver coverage for this period. That means you're required to purchase coverage on your own, but if your insurer rejects your claim, their insurance will pay.
While you are on your way to pick up passengers or have passengers in your car, Texas requires that you have a total of $1 million in coverage for death, bodily injury and property damage per accident. This coverage is generally provided by the rideshare company you work with. In Texas, Uber and Lyft also provide $1 million in uninsured/underinsured motorist coverage per accident during trips. Uber even gives contingent collision and comprehensive coverage while you are carrying passengers. This coverage kicks in if your insurer does not cover damage to your car.
You can purchase rideshare insurance to cover gaps between what you need and what your personal auto policy and rideshare company will provide. Allstate and Mercury tend to have the cheapest policies in Texas. Progressive and State Farm tend to be the most expensive, but price isn’t the only factor to consider. Be aware that providers differ in how they structure these rideshare policies. Find the right coverage for your needs.
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