In Texas, rideshare services such as Uber and Lyft have become a go-to method of transportation for people across the state. These services provide convenience and affordable options for riders, but they also bring with them the potential for accidents and confusion regarding liability. Bowen Law Firm, PLLC, based in Houston, Texas, has extensive experience helping those injured in rideshare accidents understand who is responsible for damages, injuries, and other costs when a rideshare driver causes a crash. The responsibility in these cases can be complex, and understanding who is liable is essential to ensuring that victims receive the compensation they deserve.
In general, the issue of liability in a rideshare accident depends on several factors. These factors include the driver’s status at the time of the crash, the nature of the accident, and the insurance coverage available from the driver’s personal insurance as well as from the rideshare company itself. Let’s break down the legal framework and key factors that will determine who is held accountable when a rideshare driver causes a crash in Texas.
Rideshare Drivers as Independent Contractors and the Impact on Liability 
When you request a ride through an app like Uber or Lyft, the driver who picks you up is not an employee of the rideshare company but an independent contractor. This is an important distinction because it impacts how liability is assigned when accidents occur. In most cases, the driver is considered primarily responsible for their actions, and their personal auto insurance would typically cover damages if they are at fault. However, when a driver is actively working with the rideshare company—whether en route to pick up a passenger or transporting one—the situation becomes more complicated.
Rideshare companies such as Uber and Lyft carry their own insurance policies that can provide coverage for damages in these cases, but the extent of that coverage depends on whether the driver is “on duty” at the time of the accident. If the driver is logged into the app and has accepted a ride request, the rideshare company’s insurance will usually kick in. But if the driver is offline or simply driving their personal vehicle for non-business reasons, only their personal insurance is involved.
When the Rideshare Driver Is at Fault
If a rideshare driver is at fault for causing an accident, liability typically falls on the driver’s personal auto insurance policy. However, if the driver is working for Uber or Lyft at the time of the accident, there may be additional coverage available through the rideshare company’s insurance policy. Rideshare insurance comes in several “periods” depending on whether the driver is actively transporting a passenger, en route to a pickup, or waiting for a ride request.
- Personal Insurance: When a rideshare driver is off the clock and not logged into the app, they are considered to be driving for personal purposes. In this case, the driver’s personal car insurance is responsible for covering damages caused by the crash. However, in some cases, personal insurance policies may not provide adequate coverage for serious accidents, which is why many rideshare drivers carry additional insurance or a rideshare endorsement.
- Rideshare Insurance: When the driver is logged into the app and either en route to pick up a passenger or transporting a passenger, the rideshare company’s insurance policy takes over. This policy can cover both personal injury and property damage. Uber and Lyft both provide coverage up to $1 million in liability insurance during these periods. However, the extent of coverage will vary depending on whether the driver is at fault, whether the victim is a passenger or another motorist, and the specifics of the insurance policy.
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When the Rideshare Company Can Be Held Responsible
Even though rideshare drivers are considered independent contractors, rideshare companies may still be held liable under certain circumstances. If the accident was caused by the driver’s negligence and there is evidence that the rideshare company is at fault, then the company may be held partially or fully responsible for the crash.
For example, if the driver had a history of unsafe driving or criminal behavior, but Uber or Lyft failed to conduct an adequate background check or screening process, the company may share responsibility for the crash. Additionally, if the rideshare company failed to maintain proper safety standards or neglected to train the driver adequately, they may be deemed liable for the crash.
Furthermore, if the rideshare company’s insurance coverage does not fully address the extent of the damages, the company may still be held accountable for additional compensation. This is particularly important when the injury victim is a passenger, as passengers are often entitled to larger settlements when rideshare company policies are involved.
Injuries to Passengers and Other Third Parties
In the case of an injury to a passenger, the process for claiming compensation is slightly different. Passengers who are injured in a rideshare accident can pursue claims against the driver’s personal insurance as well as the rideshare company’s insurance policy. This process may become even more complicated if other parties are injured as well, such as pedestrians, cyclists, or drivers of other vehicles.
In Texas, rideshare companies are legally required to provide insurance coverage for any injuries caused during an active rideshare period. This means that if a rideshare driver causes an accident while transporting a passenger, the injured passenger is entitled to compensation under the rideshare company’s insurance policy. However, if the driver is not actively working for the company, then the injured passenger would need to rely on the driver’s personal auto insurance to recover damages.
Steps to Take After a Rideshare Accident in Texas
Being involved in a rideshare accident can be overwhelming. It’s important to take the right steps after an accident to protect your health, ensure your safety, and make sure you are legally covered. Here are a few steps to follow if you are involved in a rideshare accident in Texas:
- Seek Medical Attention: No matter how minor the injury may seem, seek medical attention immediately. Even small injuries can worsen over time, so it’s best to get checked out by a doctor after the crash.
- Gather Evidence: Document everything from the accident. Take photos of the scene, get contact information from witnesses, and collect the rideshare driver’s name, license number, and insurance details. If possible, obtain the driver’s app profile information to identify whether they were actively working for the company at the time.
- File a Police Report: Texas law requires that you file a report with law enforcement if the accident resulted in any injuries or property damage. This report will help establish the facts of the crash and create a legal record.
- Notify Your Insurance Company: Even if you are not at fault, report the accident to your own insurance company. This can help you file a claim if needed and ensure that your injuries are covered in the interim.
- Consult a Personal Injury Attorney: Handling a rideshare accident claim can be complicated, especially when dealing with multiple insurance companies and parties. An attorney with experience in personal injury law can help guide you through the process and ensure that you receive fair compensation for your injuries.
How Bowen Law Firm, PLLC Can Help You
Rideshare accidents often present unique challenges when it comes to determining liability and filing claims. Bowen Law Firm, PLLC, with offices in Houston, Texas, specializes in representing individuals who have been injured in accidents involving rideshare drivers. Our experienced attorneys are dedicated to helping victims navigate the complexities of Texas law and secure the compensation they deserve.
If you’ve been injured in a rideshare accident, don’t hesitate to contact Bowen Law Firm, PLLC. We are here to help you understand your legal rights and pursue a fair settlement, ensuring that you get the full compensation you are entitled to.