The Basics of Texas Rideshare Insurance (Uber, Lyft, etc)

Texas-Rideshare-Insurance

These days, side hustles and main ones have many blurry lines. The idea of taxiing around people for a rideshare service such as Uber or Lyft has grown in popularity as a great way to have extra spending money or even become your full-time source of income. But what drivers may not recognize are the risks that come with driving for a rideshare service without rideshare insurance. There are coverages offered by the rideshare companies themselves, however, there are loopholes that can still leave you vulnerable. Learn more about how to protect yourself and your vehicle while out on the road with rideshare insurance in Texas.

What Is Rideshare?

Ridesharing is an alternative to traditional taxis in which drivers use their personal vehicles to pick up passengers who hail or schedule rides through an app. Uber and Lyft dominate the market, but there are other examples of ridesharing companies, specifically in Austin, Texas:

  • Earth Rides provides passengers with eco-friendly rides that avoid using gasoline-powered vehicles for its services.
  • HopSkipDrive uses parents and those with caregiving experience the opportunity to shuttle children around for working parents who may need their child to get from point A to point B.
  • Kidcaboo also helps working parents get their kids around town and is looking to hire “driving nannies” to help fill the demand.
  • SendaRide is a customized medical transport for nonemergencies sent right to your door.
  • Wingz allows its users to schedule a ride to the airport so long as there is at least a two-hour notice.
  • Wridz is a subscription-based ridesharing service that looks to address a number of issues including passenger safety, the wages of drivers, and the annoyance of surge prices.

Remember, any time you are using a private vehicle to get someone to another destination for a fee, you’ll likely fall into the category of ridesharing. If you are operating as such, then you’re going to need the right coverage to avoid suffering potential losses as a standard auto insurance claim will likely be denied.

You’ll also want to be sure that no matter which level of car insurance you purchase, always disclose your ridesharing activities to your auto insurance provider. Failure to do so can leave you in a difficult place including denied claims or even being dropped as a client altogether.

Formally known as Transportation Network Companies (TNCs) by the Texas Department of Licensing & Regulation (TDLR), some companies may offer TNC insurance for rideshare drivers in Texas, however, there are limitations as to how these coverages will protect you in the event of an accident.

What Insurance Companies Insure Uber?

There are many rideshare insurance options out there for Uber as well as other rideshare companies. Here are some of the most popular rideshare insurance companies in the state of Texas:

  • Progressive Rideshare Insurance
  • Allstate Rideshare Insurance
  • Liberty Mutual Rideshare Insurance

The main concern when driving for Uber or any other rideshare company that drivers may overlook is the time waiting for a customer before the ride has been accepted. While rideshare companies often offer some form of protection that kicks in after you’ve accepted a passenger, the downtime falls into your responsibility.

It can be complicated further as a personal auto insurance policy will likely not cover you because ridesharing is considered business use.

How Much Does Rideshare Insurance Cost in Texas?

The cost of adding rideshare insurance in Texas can vary from person to person, but it’s a much more affordable option compared to having to face a loss and having to pay out of pocket. On average, drivers in Texas who work ridesharing gigs can receive the right amount of coverage with premium increases of ~30% per month.

These costs will vary due to a number of personal factors, the amount of coverage you require, how often you work ridesharing gigs, and more. But the general rule is that drivers who need more coverage and carry higher risks of getting into an accident will pay more for their premium whereas those with less coverage and less risk will pay less also.

Do You Need Full Coverage for Uber?

Do-You-Need-Full-Coverage-For-Uber

No, it’s unlikely that you’ll need full coverage for Uber or other rideshare companies as your TNC coverages will protect you will driving customers by providing larger coverage limits, but again, it’s the downtime that you need to be aware of. Uber insurance requirements may not be enough depending on the nature of your automobile accident.

Full coverage means that you hold liability coverage (required by law to be a driver in Texas), collision insurance (helps restore your vehicle after an accident regardless of fault), and comprehensive coverage (which pays to restore damage to your vehicle outside of an accident).

While this may not be necessary, such protection is an important consideration. The more that you’re on the road, the more likely you are to be in a wreck or have your vehicle damaged. You’ll also need to consider the rising costs of repairs, medical expenses, and legal fees when determining your policy limits and the number of coverages you enroll in.

We Help Drivers in Texas Find Cheap Rideshare Insurance

The key to finding affordable rideshare insurance in Texas is by comparing your coverage needs among various rideshare insurance companies. This is why Freedom Insurance Group works with more than 25 top-rated auto insurance providers including Progressive, Liberty Mutual, and Allstate.

Because there are so many different factors that go into creating your rideshare insurance premium, it’s no wonder you’ll find different prices for the same protection. By comparing your rates among our vast network of reliable providers, you can find the best protection at the lowest price on the market for your needs.

We help our clients save an average of 40% on their policies and are prepared to build you a customized form of protection that helps you while on the road for personal use as well as ridesharing. Ask an agent or contact us today about your rideshare insurance needs.

Contact Us

Freedom Insurance Group
3861 Long Prairie Rd Ste 110
Flower Mound, TX 75028
Phone: (972) 798-3769

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