TX HB3520

Redefines insurance coverage periods for rideshare drivers (e.g., Uber, Lyft) based on whether a passenger is physically in the vehicle rather than whether the driver is on a "prearranged ride"

Requires lower liability coverage ($50,000/$100,000 per person for bodily injury, $25,000 for property damage) when a driver is logged into the app but has no passenger in the vehicle, including during pickup periods

Requires $1 million aggregate liability coverage only when a transportation network company rider is actually present in the vehicle

Mandates uninsured/underinsured motorist coverage and personal injury protection where required by existing law for both coverage periods

Applies to automobile insurance policies delivered, issued, or renewed on or after January 1, 2026, with the act taking effect September 1, 2025