Rideshare Insurance Requirements in Texas

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Texas law requires rideshare drivers to have more insurance than people who only drive for personal trips. In addition, most car insurance companies in Texas require you to buy special coverage while you drive for a rideshare company.

On average, auto insurance for ride-sharing drivers is moderately higher than a normal car insurance policy.

Texas auto insurance requirements for rideshare drivers

To become a rideshare driver for a rideshare company, including Uber and Lyft, you must have auto insurance coverage that extends beyond the Texas minimum amount while driving for the rideshare company. The exact amount of coverage required varies depending on which part of rideshare driving you are in, often called a "period."

While the rideshare app is off and you are using your car for personal purposes, you only need coverage that meets Texas insurance minimums, also called Period 0.

  • $30,000 of bodily injury liability coverage per person injured in an accident
  • $60,000 of bodily injury liability coverage per accident
  • $25,000 of liability coverage for property damage per accident

Keep in mind when shopping for insurance that these are the minimum coverage limits for Texas. You may want higher coverage amounts for greater peace of mind. It's also a good idea to look at other coverage options like comprehensive car insurance which lets you file an insurance claim if your vehicle is damaged by something other than a car, such as a falling tree branch or a storm.

Period 1: While you have a rideshare app open on your phone and you're waiting for a ride request, Texas requires you to have more liability coverage:

  • $50,000 of bodily injury liability coverage per person injured in an accident
  • $100,000 of bodily injury liability coverage per accident
  • $25,000 of liability coverage for property damage per accident

You may need to buy this coverage yourself, or it may be offered by the rideshare company you work with. Confirm with your rideshare company to see what coverage you need. Because if you're using your car to work, you may need to buy commercial car insurance.

Both Uber and Lyft offer "contingent" driver coverage during this period. This means you're required to get coverage on your own, but if your insurance company rejects your claim, your rideshare company's insurance will protect you.

Uber and Lyft typically have $2,500 deductibles for comprehensive and collision coverage.

This is higher than what most normal car insurance policies offer.

Comprehensive and collision car insurance

  • Comprehensive coverage pays for damage to your car that's not caused by your car driving into something else. For example, comprehensive covers theft, storm damage and vandalism.
  • Collision coverage pays for damage caused by a car crash. For example, a collision policy would cover damage caused if you drove into a tree or if you hit another car on the freeway.

Some insurance companies don't sell coverage levels that change depending on the zone you're in. That means you'll have to get a policy that goes up to period three limits even while you're in period zero.

For example, rideshare drivers who have Progressive need to get the highest amount of coverage to protect them during all driving periods.

Periods 2 and 3: While you are on your way to pick up a rider (Period 2) or have a passenger in your car (Period 3), the required liability limits are much higher: $1 million for bodily injury and property damage (total) per accident. However, both Uber and Lyft almost always offer this coverage.

Uber and Lyft also both cover you with $1 million uninsured/underinsured motorist coverage per accident. Both companies offer contingent collision and comprehensive coverage that go into effect while you are carrying passengers.

How much does Texas rideshare insurance cost?

Adding rideshare insurance coverage can increase your insurance bill by 18% to 32% from normal Texas rates, when other coverages are identical.

Your rates will increase more than this amount if you have the Texas state minimum coverage limits since you'll have to increase your coverage limits to become a rideshare driver.

The price difference varies quite a bit by company. State Farm had the most affordable rideshare insurance. It only charged 18% more to add rideshare coverage, while Mercury increased the rate by around 32%.

It's a good idea to get quotes from more than one Texas car insurance company to help you find the best auto insurance for ride-sharing. Even if you already looked the last time you bought car insurance, it's a good idea to check again since rates are always changing.

The best insurance company for Uber drivers will vary depending on factors like the city you live in.

Some insurance companies, like Liberty Mutual, don't offer special coverage, but they do allow you to add ridesharing to a normal policy. Some other insurance companies don't cover rideshare drivers.

It's a bad idea to try to hide ridesharing activity from your insurance companies. An insurance company may deny your claim and even drop your insurance if they find out you got in an accident while working for a rideshare company.

Monthly cost of rideshare insurance vs typical coverage

Min. coverage
Full coverage
Ride Share

State Farm



Requirements to drive for Uber and Lyft in Texas

In addition to the insurance requirements, you'll need to meet several conditions to become a driver with Uber, Lyft or another company in Texas.

In general, you'll need to be at least 21 years of age, have a valid driver's license, have at least one year of driving experience and pass a driving history and criminal background check. You'll also need a smartphone that can run the Uber or Lyft driving app.

The car you use also needs to meet certain minimum standards. Both Uber and Lyft have different service tiers which each have different requirements for your car. Higher service levels have stricter requirements, but you'll also make more money.

Requirements for Uber and Lyft drivers in Texas

  • At least 21 years old (25 for Lyft)
  • One year of driving experience (three years if you're under age 25)
  • Pass a background check
  • Pass a DMV check
  • Valid driver's license
  • Enough car insurance
  • Vehicle registered in the state of Texas
  • Smartphone for driving app

Both Uber and Lyft require that their drivers have a minimum 4.85-star rating also to give premium rides.

Uber vehicle standards

Any car you use for Uber in Texas, regardless of service level, must be 16 years old or newer and must be in good condition. The car needs four doors and enough factory-installed seats and seat belts for all passengers. Your car also can't have any commercial branding.

You must also have Texas-specific insurance and registration, although you don't need to be registered in a specific city, such as Houston or Dallas to work as a rideshare driver there.

Uber also has the following service level-specific requirements.

Car age
Car model
UberX15 years<Any5+
UberXL 10 years< Any7+
Uber ComfortLess than eight years old Cars with spacious interiors 5+
Uber BlackFive years< Black luxury sedan 5+
Uber SUVFive years< Black SUV 7+

Lyft vehicle requirements

Every Lyft car in Texas must be model year 2010 or newer, have four doors and have at least five seats and seat belts, including the driver's. You'll also need to meet the legal insurance minimum, and the car must be registered in Texas.

Lyft drivers have different options depending on the level of service offered. As the service levels increase, your earnings will increase, but so do the eligibility requirements.

Car age/Year
Car model
Lyft2010 or newerAny5+
Lyft XL2010 or newerAny7+
Lyft Extra Comfort2018 or newerNewer eligible vehicles5+
Lyft Black2014 or newer Black luxury sedan 5+
Lyft Black SUV2014 or newer Black SUV 7+

Frequently asked questions

What are the rideshare insurance requirements in Texas?

Texas requires rideshare drivers to have $50,000 of bodily injury liability coverage per person injured in an accident, $100,000 of bodily injury liability coverage per accident and $25,000 of liability coverage for property damage per accident, also called 50/100/25 coverage, while you're using a rideshare app and waiting for a rider. Once you have a passenger in your car, or if you're driving to pick up a passenger, the coverage requirements increase to $1 million for bodily injury and property.

What's the best ride-sharing insurance in Texas?

State Farm has the most affordable auto insurance for rideshare drivers in Texas. However, the best car insurance for you will depend on your personal details, such as whether you live in Austin or Houston.

Does being an Uber driver affect your insurance?

Yes, you have to buy higher levels of coverage, and potentially different types of coverage, when you drive for a rideshare company like Uber or Lyft. On average, rideshare drivers in Texas can pay 18%-32% more in insurance costs compared to normal drivers.


Information related to Texas insurance minimum laws are from Texas state legislature documents. Uber and Lyft vehicle, driver and insurance requirements came from each company's respective website.

ValuePenguin collected insurance rate data for personal coverage and rideshare insurance from State Farm, Progressive and Mercury. The auto quote you get may differ from the rates presented here.

Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.