Drivers all over the nation are working for rideshare companies either as a full-time job or as a side gig to make some extra money. Whatever your reason may be, rideshare drivers need to carry more insurance than those who drive for personal reasons. This is because your personal car insurance policy doesn’t cover you and the commercial liability insurance your rideshare company provides may not cover enough (or they don’t provide it at all). Typically, you can expect to see a rate increase of 15%-30% but rates vary by carrier and coverage. Let’s review what the rideshare requirements are and how much you can expect to pay for protection.
How Much Rideshare Insurance Do I Need In Texas?
Driving for a transportation network company, or TNC, like Uber or Lyft, you’re legally required to carry more auto insurance that extends past the minimum required by the state of Texas. It’s a terrible idea to try and hide any rideshare driving from your insurance company because should they find out, you can have your claim denied or drop your insurance policy.
If you’re a rideshare driver, your insurance coverage will work as “periods” depending on what mode you’re driving in.
Period 0 is when the rideshare app (Ex. Uber or Lyft) is off and you’re using your car for personal use. During this period, you’ll only need auto insurance that meets the state minimum requirements.
Period 1 is when you’re waiting for someone to request a ride or while the ridesharing app is in use. During this period, you’re required to have the Texas state minimum requirements:
- $50,000 of bodily injury liability coverage per person injured in an accident
- $100,000 of bodily injury liability per accident
- $25,000 of liability coverage for property damage per accident
Period 2 is when you’re on your way to pick up a rider and Period 3 is when the rider is in your vehicle. During these periods, you’re required to carry $1 million for bodily injury and property damage total per accident. Depending on who you drive for, most TNC companies will provide this extra level of coverage for you, in addition to uninsured/underinsured motorist coverage per accident.
It’s important to note, that not all insurance companies will allow drivers to purchase these varying levels of coverage to go into effect at different times, so in those instances, you’ll need to buy a policy that’s all-encompassing of the coverage you’ll need.
How Much Should I Pay For Rideshare Insurance In Texas?
Depending on how much auto insurance you currently have, you may see an increase of 15%-30% for rideshare insurance. It’s worth noting, that you cannot have a rideshare policy with a different carrier than your personal auto insurance policy.
The best (and easiest) way to save on rideshare insurance in Texas is to shop your insurance policy with multiple carriers. At TGS Insurance, we can do this for you! We’ll shop your rideshare insurance policy across our bank of 35+ A-rated (or better) carriers to find you a policy that works best for the coverage you need at a great rate. It’s worth noting, that you cannot have a rideshare policy with a different carrier than your auto insurance policy.
What Are The Requirements To Drive For Uber And Lyft In Texas?
Just because you have a car, does not mean you can just turn on a rideshare app and drive. You’ll need to meet several other requirements such as a background check and vehicle standards to drive for Lyft or Uber in addition to the necessary insurance coverage.
Lyft and Uber Requirements For Drivers in Texas
- Minimum of 21 years old
- Pass a DMV and background check
- Valid driver’s license
- Texas vehicle registration
- Meet minimum insurance requirements
Depending on what service you request, Uber has minimum ratings each driver must meet in order to drive at that service level. If the driver’s star ratings dip below that level, they may not be able to pick up new riders at that level, or at all.
- UberX/UberXL: 4.6 stars
- Uber Select: 4.75 stars
- Uber Black/Uber SUV: 4.85 stars
Lyft follows the same rating logic as Uber with its drivers.
- Lyft/Lyft XL: 4.6 stars
- Lyft Lux: 4.6 stars
- Lyft Lux Black/Lux Black XL: 4.7 stars
Both Uber and Lyft also have rigid requirements for what vehicles can serve at what levels.
- Lyft vehicles must be 2002 model or newer, Uber vehicles must be under 10 years old
- Four doors
- Factory-installed seat belts and seats to accommodate five people (including the driver)
Depending on what level you’re wanting to drive at, your vehicle must meet certain criteria:
Uber
| Service | Car Age | Car Model | Number of Seats | Interior Type/Condition |
| UberX | Less than 10 years old | Any | 5+ seats | Good condition |
| UberXL | Less than 10 years old | Any | 7+ seats | Good condition |
| Uber Select | 2008 or newer | Luxury sedan* | 5+ seats (no vans) | Vinyl or leather, great condition |
| Uber Black | Less than 5 years old | Black luxury sedan* | 5+ seats | Vinyl or leather, great condition |
| Uber SUV | Less than 5 years old | Black SUV* | 7+ seats | Vinyl or leather, great condition |
Lyft
| Service | Car Age | Car Model | Number of Seats | Interior Type/Condition |
| Lyft | 2002 or newer | Any | 5+ seats | Good condition |
| Lyft XL | 2002 or newer | Any | 7+ seats | Good condition |
| Lyft Lux | 2013 or newer | Black luxury sedan* | 5+ seats (no vans) | Black vinyl or leather, great condition |
| Lyft Lux Black | 2013 or newer | Black luxury sedan* | 5+ seats | Black vinyl or leather, great condition |
| Lyft Lux Black XL | 2013 or newer | Black SUV* | 7+ seats | Black vinyl or leather, great condition |
Save On Rideshare Insurance With TGS Insurance
Getting the right rideshare insurance can be a bit confusing and sometimes if you’re not careful, can cost you. At TGS Insurance, we want to make getting insured as easy as possible while also offering the max amount of savings! We shop your rideshare coverage with over 35+ providers to find you the best deal with the most protection. Get your hassle-free quote today and see why over 15,000 Texans have made the switch to TGS Insurance!