In Texas, rideshare apps like Uber and Lyft bring convenience to millions of people every day, but they also raise unique legal questions when accidents happen.
With so many drivers on the road operating as independent contractors for these companies, determining liability in a rideshare accident can become complicated.
This guide will walk you through the layers of potential liability and insurance coverage in Texas rideshare accidents, including the conditions under which each party—whether the driver, the rideshare company, or another motorist—may bear responsibility.
If you or a loved one was in a rideshare accident in Texas, don’t wait to seek help. Our team of Houston rideshare accident lawyers is here to provide straightforward answers and tenacious representation. Call our firm today at (713) 913-4627 for a consultation and to discuss your next steps in securing justice.
Understanding Rideshare Driver Liability in Texas
Table of Contents
In Texas, liability in a rideshare accident often hinges on whether the driver was actively using the rideshare app at the time of the crash.
In Texas, Uber, Lyft, and other rideshare companies classify their drivers as independent contractors, not employees.
This classification limits rideshare companies’ liability. Because drivers aren’t employees, the companies themselves are not directly responsible for any accidents their drivers cause. Instead, they seek to place primary responsibility on the individual driver and their insurance.
Rideshare Drivers as Independent Contractors
Texas labor laws, as outlined in the Texas Labor Code Section 406.091, allow companies to classify drivers as independent contractors. This legal distinction has significant implications for accident claims.
When a rideshare driver causes an accident, the rideshare company may argue that their limited control over the driver’s activities absolves them from liability.
How App Status Impacts Driver Liability
The key to understanding who will pay for your losses is often the driver’s status on the app:
- Not Logged into the App: If the rideshare driver isn’t logged into the rideshare app at the time of the accident, they are effectively operating as a private driver. In these cases, their personal auto insurance would generally be responsible for covering any damages, just like in any other private car accident. Personal insurance policies, however, often exclude coverage when a driver is using their vehicle for commercial purposes, which can create additional complications.
- Logged into the App but Without a Ride Request: When a driver is logged in and waiting for a ride request, Texas law requires the rideshare company to provide contingent coverage, including $50,000 for bodily injury per person, $100,000 for bodily injury per accident, and $25,000 for property damage.
- En Route to Pick Up a Passenger or Transporting a Passenger: If the driver has accepted a ride and is on the way to pick up a passenger—or has a passenger in the vehicle—rideshare companies must provide $1 million in liability coverage, per Texas Insurance Code Chapter 1954. This substantial coverage applies from when the passenger accepts the ride until the driver drops off the passenger.
Why Independent Contractor Status Complicates Claims
While independent contractor status limits the company’s direct liability, it does not completely shield rideshare companies from all legal responsibility. Company-provided insurance coverage adds a layer of financial protection for victims.
However, companies still frequently attempt to push the burden onto drivers and their personal insurance policies. This fragmented approach to insurance can make the claims process challenging, especially for passengers or other motorists who may be entitled to compensation.
Situations Affecting Liability in Texas Rideshare Accidents
In Texas rideshare accidents, determining liability isn’t always as simple as identifying who caused the collision. Liability can vary depending on the type of accident, whether the driver or another party was at fault, and other contributing factors.
When the Rideshare Driver is At Fault
If the rideshare driver is found responsible for the accident, liability typically falls on them and, depending on their app status, the rideshare company’s insurance may activate.
Here’s how it works in common situations:
- Logged Out of the App: If the driver does not log into the app, the law treats the accident like any private motorist accident. In this case, the driver’s personal insurance will likely be the only policy available for claims. However, Texas drivers should be aware that personal auto policies often exclude coverage when the vehicle is used for commercial activities, like ridesharing.
- Active on the App or Transporting a Passenger: When the driver is logged into the app or carrying a passenger, the rideshare company’s contingent or primary insurance coverage (up to $1 million) generally applies, offering substantial protection to injured parties.
When Another Driver is At Fault
If another driver caused the accident, the injured parties may file claims against the at-fault driver’s personal insurance policy. In Texas, minimum liability insurance requirements for drivers are $30,000 for bodily injury per person, $60,000 per accident, and $25,000 for property damage.
However, these amounts often fall short in covering serious injuries, especially if multiple passengers are injured.
- When Other Driver’s Insurance is Insufficient: In cases where the at-fault driver’s insurance doesn’t cover all damages, the rideshare company’s underinsured/uninsured motorist coverage, which may be part of the $1 million liability coverage, can cover the remainder. This coverage activates when the rideshare driver is en route or transporting a passenger.
Complications with Multiple Liable Parties
In some accidents, liability might be shared between the rideshare driver and another party. Texas follows a modified comparative fault rule (Texas Civil Practice and Remedies Code Section 33.001), which reduces a claimant’s recovery by their percentage of fault in the accident.
If you are partially responsible, for instance, the amount you can recover will be reduced by your share of the blame.
However, under Texas law, if you are found more than 50% responsible, you cannot recover damages.
This rule becomes particularly complex in multi-party accidents, as both drivers and their insurance companies may attempt to shift responsibility.
Product Defects or Road Conditions as Contributing Factors
In rare cases, vehicle defects or unsafe road conditions contribute to rideshare accidents.
For example:
- Vehicle Malfunctions: If a defect in the rideshare vehicle, such as faulty brakes, contributed to the accident, the vehicle manufacturer or repair company may share liability.
- Hazardous Road Conditions: If an unsafe road condition, like an unmarked pothole or poor road design, contributed to the accident, you can hold liable a government entity responsible for road maintenance, such as the Texas Department of Transportation.
When Liability Falls on the Rideshare Company
When a rideshare accident happens, liability doesn’t always rest solely with the driver or other motorists involved. In some cases, the rideshare company itself may be held responsible through a corporate negligence claim.
Corporate negligence occurs when a company’s actions—or lack of necessary actions—contribute to harm. In the context of rideshare companies like Uber or Lyft, these claims generally involve failures in driver screening, monitoring, or other policies that indirectly lead to accidents.
Possible Scenarios
- Negligent Hiring and Inadequate Background Checks
- Texas law expects companies, especially those providing public services like transportation, to conduct thorough background checks on employees and contractors to ensure passenger safety. Rideshare companies must screen their drivers, but when they fail to conduct adequate background checks or overlook red flags, you can hold them legally liable.
- Examples include hiring drivers with known histories of DUI, reckless driving, or a significant number of traffic violations.
- Failure to Monitor Driver Conduct and Performance
- Rideshare companies are expected to monitor the ongoing safety and conduct of their drivers. While rideshare companies classify drivers as independent contractors, companies must ensure that drivers maintain clean driving records and adhere to safe driving practices.
- Monitoring failures include overlooking passenger reports of poor driving or neglecting to reevaluate drivers’ records periodically. Texas law holds companies accountable for demonstrating a lack of oversight, especially if the company ignored passenger complaints or allowed drivers with problematic histories to continue operating.
- App Design Flaws Leading to Driver Distraction
- Rideshare apps encourage drivers to accept ride requests quickly and, at times, to perform multiple tasks while driving, which can create distractions. Drivers glancing at their phones to navigate, manage requests, or receive notifications from the rideshare app, can contribute to distracted driving crashes.
- A corporate negligence claim may address app design features that promote unsafe driving practices, such as notifications that incentivize drivers to keep their eyes on the screen rather than on the road. In such cases, a lawyer could argue the app’s design inherently leads to distracted driving, especially if a driver’s focus on the app instead of traffic causes an accident.
- Negligence in Implementing Safety Protocols and Policies
- Rideshare companies have a duty to protect their passengers by establishing and enforcing clear safety policies. This can include regular training materials on safe driving practices, alerting drivers to high-risk behaviors like speeding or distracted driving, and setting up protocols for high-risk situations.
- If a company fails to enforce these policies or lacks adequate safety training, they may be held liable if these oversights contribute to an accident. For instance, if a rideshare company lacks a clear policy for dealing with drowsy driving or fails to flag drivers who work excessive hours, you could hold it partially responsible if driver fatigue leads to an accident.
- Failure to Suspend or Remove High-Risk Drivers
- Removing unsafe drivers from the platform is one of the simplest ways rideshare companies can maintain passenger safety. However, there have been documented instances where companies allowed drivers with repeated complaints or dangerous driving histories to continue working. Allowing such drivers to remain on the platform can put passengers and the public at risk.
- Texas law allows for vicarious liability in cases where a company’s negligence in supervising or disciplining its contractors contributes to harm. If evidence shows that the rideshare company failed to suspend or remove a driver who later caused an accident, a corporate negligence claim may be necessary to hold the company accountable for failing to act on known safety risks.
Steps to Take After a Rideshare Accident in Texas
1. Document the Accident Scene
Gather Key Information: Exchange contact and insurance details with all drivers involved. Be sure to note the rideshare driver’s name, the rideshare company they drive for, and any visible app status (whether they were logged in and transporting a passenger).- Take Photos and Videos: Visual evidence of the accident scene, vehicle damage, road conditions, and any visible injuries can be instrumental in proving fault. Be thorough, capturing multiple angles and documenting any nearby traffic signs, skid marks, or road hazards.
- Identify Witnesses: If there were witnesses to the accident, collect their contact information and ask for their account of what happened.
2. Notify the Rideshare Company
- Report the Accident Through the App: Most rideshare companies, including Uber and Lyft, provide options to report accidents directly through their apps. Promptly notifying the company establishes a formal record of the accident, which can activate their insurance coverage if applicable.
- Document Communication: Keep records of any messages, emails, or other communication with the rideshare company. This documentation can be helpful if you encounter difficulties in the insurance claims process.
3. Seek Medical Attention, Even for Minor Symptoms
- Get a Medical Evaluation: Even if you only feel minor pain or discomfort, seeing a doctor immediately is essential. Injuries such as concussions, whiplash, or internal injuries may not manifest symptoms right away, and delaying medical care can weaken your case by allowing insurers to argue that the injuries were not accident-related.
- Follow Up on Medical Treatment: Consistently following your doctor’s treatment plan and attending any recommended follow-up appointments not only aids your recovery but also strengthens your claim by demonstrating that you took your injuries seriously.
4. Contact a Personal Injury Attorney
An experienced attorney will assess your case, negotiate with insurance adjusters on your behalf, and protect your rights to fair compensation.
Get the Compensation You Deserve with AP Law
At AP Law, we understand the challenges that rideshare accident victims face. Our team will move quickly and decisively, taking on every complex aspect of your case so you can focus on recovery. Let us our Houston personal injury lawyer fight to maximize your compensation and hold all responsible parties accountable.
Don’t wait—contact us today at (713) 913-4627 for your consultation and take the first step toward getting the justice you deserve.
