Houston Market Audit: Rideshare Coverage Gap and SB1674 Reform (April 2026)
Market Disclaimer: This report uses real-time actuarial filings from FSRA (Ontario), Texas Department of Insurance, and FL-OIR for the April 2026 period. It does not constitute legal or licensed insurance advice.
The Houston rideshare coverage gap arises from the structural architecture of Transportation Network Company insurance, which divides driver coverage into three operational phases tied to app activity status. During Phase 1, when the Uber or Lyft driver app is active but no ride has been accepted, personal auto insurance policies do not cover the driver and the TNC's commercial policy has not yet been triggered. Texas SB1674's January 2026 minimum increase to $50,000 per person and $100,000 per accident heightens this gap because drivers without a Rideshare Endorsement face personal liability exposure up to the new minimum floor. The Harris County December 2025 District Court ruling confirmed that personal carriers may validly invoke the commercial use exclusion during Phase 1 activity.
| SB1674 BI Minimum | $50,000 per person / $100,000 per accident |
|---|---|
| PD Minimum | $40,000 |
| Phase 1 Gap | Unendorsed drivers have no coverage |
| Rideshare Endorsement Range | $14 to $31 per month (Houston, April 2026) |
| Court Precedent | Harris County District Court, December 2025 |
| TNC Guidance | TX DOI TNC Guidance GL-26-03 |
The Rideshare Endorsement: How to Close the Harris County Gap
TX DOI TNC Guidance GL-26-03, published March 2026, specifies that all carriers writing personal auto policies in Texas must offer a Rideshare Endorsement to policyholders who self-identify as TNC drivers. The endorsement explicitly extends personal policy coverage to include the Phase 1 operational window. Without the endorsement, an unendorsed Phase 1 rideshare driver's personal carrier will invoke the commercial use exclusion, the TNC's contingent coverage will not activate, and the driver faces uncovered Phase 1 liability exposure up to the SB1674 minimum floor.
Does my personal policy cover me during Phase 1 in Harris County?
Most standard personal auto policies in Texas contain a commercial use exclusion that activates the moment the TNC app is switched on. The Harris County December 2025 ruling confirmed that personal carriers may validly deny Phase 1 claims under this exclusion. A Rideshare Endorsement is required to extend coverage through Phase 1.