From Inc · · 1m
Who's Liable in a Rideshare Accident?
Texas law leaves rideshare accidents murky: who pays when drivers hit cars?
In brief
Texas law leaves rideshare accidents murky: who pays when drivers hit cars? Texas law requires rideshare companies to cover injuries only if drivers show gross negligence, but driverless taxis shift liability to vehicle design. Originally reported by Inc.
How Texas Law Treats Rideshare Companies
Texas licenses Tesla’s Robotaxi company the same way it licenses Uber and Lyft.
Driver Classification Under Texas Law
State law makes a rideshare driver an independent contractor for all purposes.
Freyer v. Lyft Case
A driver lost consciousness mid-ride, causing passenger injuries.
Insurance Coverage Thresholds
Coverage jumps from $50,000 to $1 million once a driver accepts a ride.
Driverless Taxis in Texas
Tesla began charging fares in Austin for Cybercab rides without drivers.
Waymo Recall in 2025
Waymo recalled over 3,000 vehicles for passing stopped school buses.
3 Steps to Prepare for Accidents
Read the agreement, ask your broker, and tell travelers to photograph the trip.
The key point
Texas law requires rideshare companies to cover injuries only if drivers show gross negligence, but driverless taxis shift liability to vehicle design.
