Driving with Uber in Texas means your coverage changes the moment you open the app - and it changes again when you accept a ride or drop off a passenger. Knowing which policy applies (and when) helps you avoid costly gaps, denied claims, and downtime.
Below is a clear, Texas-focused breakdown of Uber’s coverage phases, the common gaps most drivers don’t see coming, and how to protect yourself between trips.
How Uber’s Coverage Works (By Phase)
Phase 0 — App Off (Personal Use)
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What applies: Your personal auto policy.
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Key point: If the app is off, Uber provides no coverage. Make sure your personal policy is active and in good standing.
Phase 1 — App On, Waiting for a Request
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What applies: Uber provides third-party liability only (limits vary by company and can change; they’re typically lower than when you’re on an active trip).
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What’s not covered: Your own car’s physical damage unless you’ve arranged it on your personal/commercial policy. No comprehensive/collision from Uber at this stage.
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Why it matters: This is the most commonly overlooked gap window.
Phase 2 — En Route to Pick Up
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What applies: Uber’s higher commercial liability coverage typically activates once you’ve accepted a request. Contingent comprehensive/collision can also apply to your vehicle (usually with a deductible) if you carry that coverage on your own policy.
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Note: Terms and deductibles can change—always confirm the current details inside your Driver app and your policy docs.
Phase 3 — Trip in Progress (Passenger in the Vehicle)
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What applies: Uber’s highest commercial liability limits remain in force until drop-off. Contingent comp/collision (with a deductible) may apply to your car if you carry those coverages on your own policy.
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Also relevant: Some states/insurers include uninsured/underinsured motorist (UM/UIM) or medical options during this phase—check your policy specifics.
Remember: Uber’s coverage is primary liability once you’ve accepted a trip and while transporting a passenger—but vehicle damage coverage is typically contingent and requires you to carry comp/collision on your own policy (and you’ll owe Uber’s deductible if you use that contingent coverage).
The Gaps Most Drivers Miss
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Personal policy exclusions: Many personal auto policies exclude “livery” or “driving for hire.” Without a rideshare endorsement (or a proper commercial policy), a claim could be denied—even if the app was only on.
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Phase 1 exposure (waiting): Liability exists, but no Uber comp/collision for your car. A fender-bender here can be out-of-pocket unless your own policy fills it.
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Deductible shock: When contingent collision applies during an active trip, the deductible can be higher than your personal policy’s.
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Downtime costs: Repairs mean time off the road. Without rental reimbursement or loss-of-use/business income options on your policy, you may lose income while you wait.
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UM/UIM shortfalls: If a hit-and-run or uninsured driver injures you, lack of UM/UIM can be painful—financially and medically.
Texas-Specific Notes
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TNC rules: Texas law requires Transportation Network Companies (like Uber) to maintain certain liability coverages when the app is on and during trips. Still, your own policy needs to align with rideshare use.
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City rules vary: If you’re operating Uber Black/livery in cities like Dallas, you’ll typically need a true commercial auto policy (not just a rideshare endorsement). Platform requirements can differ by product tier.
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Proof of insurance: Keep current ID cards for both your personal/commercial policy and whatever the app provides. Officers and claims adjusters will ask for them.
How to Protect Yourself (and Your Income)
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At minimum: Add a rideshare endorsement to your personal policy if you’re driving UberX/UberX Share, etc. This helps cover Phase 1 and align your personal policy with app-on use.
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For livery/Uber Black: Get a commercial auto policy that meets platform and city requirements (liability, physical damage, etc.). Rideshare endorsements are not designed for livery.
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Add comp & collision: Ensure you carry these on your own policy so Uber’s contingent physical damage can activate during trips (be mindful of the deductible).
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Boost liability & add UM/UIM: Higher limits protect your assets; UM/UIM protects you from uninsured drivers.
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Consider extras: Rental reimbursement, towing/roadside, and gap/loan-lease coverage can reduce downtime and surprises.
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Keep records tidy: Screenshot your in-app insurance screen occasionally and save your policy docs. It speeds up claims.
Quick FAQ
Does my personal auto policy cover me when the app is on?
Often no—or it’s limited—unless you’ve added a rideshare endorsement. Without it, your insurer might deny a claim for “driving for hire.”
What’s the difference between UberX and Uber Black coverage needs?
UberX drivers can often use a personal policy + rideshare endorsement. Uber Black/livery generally requires a commercial auto policy (and must meet platform and local rules). We’ll confirm the exact requirements for your operation and city.
Will Uber pay for my car’s damage during a trip?
There is typically contingent comp/collision available once you accept a ride and during the trip—if you carry those coverages on your own policy—and you’ll owe the platform’s deductible. We’ll walk you through what that looks like today.
Can I pick my own deductible and limits?
On your policy, yes. For the platform’s contingent coverage/deductible, those are set by the platform and can change—so it’s smart to keep your own comp/collision and UM/UIM dialed in.
What to Do Next
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Tell us how you drive: UberX or Uber Black? City coverage area? Average weekly miles?
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Send your current policy: We’ll check for exclusions, weak spots, and deductible traps.
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Get a tailored quote: We’ll match your situation to the right setup—rideshare endorsement vs. commercial auto, plus the add-ons that actually save you money when it counts.
Questions about your specific setup?
The Thumann Agency has helped Texas rideshare and livery drivers since 1996. We’ll make sure your coverage keeps up with how—and where—you drive.
Get a Quote | Talk to a Texas Agent
Note: Platform insurance terms and limits can change. Always review the latest details in your Driver app and your policy documents. We’ll help you verify everything before you hit the road.