Hurt in an Uber or Lyft Crash in Texas? Here's What the Law Says

Rideshare services like Uber and Lyft have changed how Texans get around — but when crashes happen, the legal situation is far more complicated than a standard car accident. If you were hurt as a passenger, pedestrian, or another driver in a crash involving an Uber or Lyft, here's what you need to know about your rights under Texas law.

Who Pays When an Uber or Lyft Driver Causes a Crash?

Insurance coverage depends on what the driver was doing at the time of the crash. Texas law and TNC (Transportation Network Company) regulations create three distinct phases:

• Phase 1 – App Off: Only the driver's personal insurance applies. Uber and Lyft provide no coverage.
• Phase 2 – App On, No Passenger: Uber and Lyft provide contingent liability coverage of $50,000 per person / $100,000 per accident / $25,000 property damage.
• Phase 3 – En Route or Passenger Onboard: Uber and Lyft provide up to $1,000,000 in liability coverage. This is the most favorable situation for injured passengers.

Texas TNC Law — What the Statute Says

Texas regulates rideshare companies under the Texas Transportation Code Chapter 2402, which requires TNCs operating in Texas to maintain minimum liability coverage. However, the coverage amounts and how they apply can be disputed. Uber and Lyft employ teams of lawyers specifically to minimize payouts on injury claims.

What If the Uber Driver Was Hit by Another Vehicle?

As a passenger, you may have claims against both the rideshare driver (if they contributed to the crash) and the at-fault third-party driver. Uber and Lyft also carry uninsured/underinsured motorist (UM/UIM) coverage during Phase 3 — meaning even if the at-fault driver has no insurance, you may still have recourse through the TNC's policy.

Why Rideshare Cases Are Harder Than They Look

Rideshare companies classify drivers as independent contractors, not employees. They use this distinction to limit their liability. Winning maximum compensation in a rideshare case requires understanding corporate structure, insurance policy stacking, and how to argue agency relationships under Texas law.

What You Should Do Immediately After a Rideshare Crash

Screenshot the app showing your trip details, driver's name, and route. Get medical attention immediately. Report the crash through the app AND call the police. Do not give recorded statements to Uber or Lyft's insurance carriers without speaking to an attorney.

Frequently Asked Questions

Q: Can I sue Uber or Lyft directly for my injuries?
A: Yes, in certain circumstances — particularly when the driver was actively carrying a passenger or en route. The $1M policy applies, and under some theories, Lyft and Uber can face direct liability.

Q: What if I was the other driver hit by a rideshare vehicle?
A: Your rights are the same as in any accident. You can pursue the rideshare driver and potentially the TNC depending on the phase of service at the time of the crash.

Hurt in Texas? Call Byron C. Bailey & Associates for a FREE consultation: 214-223-6400 | byronbaileylaw.com. We work on contingency — you pay nothing unless we win.