Driving for ride-sharing services like Uber or Lyft can be an excellent way to earn extra cash, explore your local area, or break-up a monotonous workweek. But before you can take advantage of this job opportunity, you must make sure that you have not only an acceptable vehicle but also the appropriate auto insurance. To help you get behind-the-wheel, here’s a quick guide to car insurance requirements for ride-share drivers.

What Auto Coverage Is Required for Ride-Share Drivers?

While ride-share companies do extend some insurance to their employees, this coverage is typically limited to passenger-related damages that occur during transportation. As the driver, you will still be liable for accidents that occur outside these parameters—such as those that occur when you’re waiting for a ride request.  

In Texas, the law requires ride-share drivers to have the following auto insurance coverage while engaged in non-personal driving:

• $25,000 of property damage liability
• $50,000 of bodily injury liability per person  
• $100,000 of bodily injury liability per accident

Should I Consider Add-Ons?

In addition to the liability requirements listed above, it’s recommended that ride-share drivers purchase these forms of additional coverage:

• Personal Injury Protection (PIP): Texas law already requires motorists to have at least $2,500 to cover personal injuries caused by accidents. However, you may want to increase your limits so that you don’t have to worry about lost wages or medical costs due to your recovery.
• Collision: This add-on covers damages to your vehicle that are caused in an accident. When you only have liability insurance, your policy will only cover damage caused to other vehicles.
• Comprehensive: This coverage is designed for vehicle damage that occurs outside of transportation—such as theft, vandalism, or a tree branch hitting your windshield while you’re parked.

Why Should You Review Your Policy With Your Insurance Agent?

Texas ride-share insurance laws only came into existence in 2016 and are subject to change over time. Reviewing your policy terms with an insurance agent at least once a year can ensure that you’re meeting all current requirements—and that you’re getting the best rate on coverage.

Whether you’re new to ride-sharing or want to optimize your expenses as a driver, Barry Insurance is here to help you secure the best coverage for the job. Based in Texarkana, TX, this independent agency works with nationally recognized providers to ensure your policy fits your concerns and budget. To learn more about these and other products—including property and business insurance—visit the company online. For a custom insurance quote, call (903) 831-3493.