PCI Applauds Innovation and Common Sense Approach to Fixing Transportation Network Company Insurance Gaps: 29 States Have Enacted Ride Hailing Legislation

Great progress was made in 2015 to enact legislation or rules closing the insurance coverage gaps associated with transportation network companies (TNC) such as Uber and Lyft. At the beginning of the year, just California, Colorado, District of Columbia and Illinois had legislation addressing TNCs. By the end of the year, a total of 29 states had enacted laws to protect not only drivers, but their passengers and the public, by closing the insurance gaps that left drivers and the public vulnerable in an accident.

Legislative momentum for these laws was gained in the spring of 2015, when the insurance industry and the TNCs mutually supported model legislation establishing TNC insurance requirements from the time the ridesharing app is turned on until it is turned off. The TNC laws now on the books put an end to consumer confusion regarding insurance coverage, while also allowing for continued marketplace innovation. As new transportation ideas evolve to meet consumers’ needs and demands, insurers are developing new products to cover those ideas and provide peace of mind.

The 29 states with TNC laws or regulations include: Arizona, Arkansas, California, Colorado, District of Columbia, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, Wisconsin and Washington.

Across the country, PCI has supported establishing rules that provide clarity regarding what insurance coverage is being provided, when it’s being provided and by whom, as well as appropriate disclosures for drivers and passengers. PCI also supports innovation that brings new products into the marketplace.

Stay abreast of TNC legislative and regulatory developments with PCI’s Issue Status Map.