American Property Casualty Insurance Association
  • Staff Contact: Nicole Mahrt-Ganley     
    • Printer-Friendly Printer-Friendly PDF Export PDF Export




Nicole Mahrt-Ganley


916-616-5855 or 916-479-2670





March 19, 2014

Ride-Share Companies Unfairly Shifting Their Insurance Responsibility to All Arizona Drivers

Insurers warn legislators that ride-sharing companies are trying to make all drivers cover their insurance costs


PHOENIX - Today members of the Arizona Senate Commerce, Energy & Military Committee ignored warnings from insurers that legislation, pushed by ride-sharing companies, shifts insurance responsibility and costs from ride-sharing firms onto all Arizona drivers.  Arizona drivers will be stuck paying the bill for the ride-sharing companies, says the Property Casualty Insurers Association of America (PCI).

Ride-sharing is a new transportation trend in major cities around the country where a company uses a smartphone app to connect drivers with fee paying riders as part of an organized program.  HB 2262 triggers the ride-sharing company’s insurance coverage when a TNC drivers is matched with a passenger and until the ride ends, forcing the personal lines policy to cover the risky driving behavior of the driver while trolling for a passenger.

“HB 2262 enables the ride-sharing companies to duck their responsibility to provide appropriate insurance coverage while Arizona drivers will be forced to unfairly pay the bill,” said Kelly Campbell, PCI vice president for state government relations. “It is wrong and inappropriate for one business to alter another industry’s contract to accommodate their profit. Arizona legislators should reject the new striker amendments to HB 2262 and consider a bill that will appropriately protect consumers.”

Personal auto insurance policies are not intended for commercial activities and contain a specific “livery” exclusion which bars coverage if the car is used to transport passengers for a fee. These exclusions have been upheld in the courts for decades.

“Insurance is part of the normal cost of doing business and ride-sharing programs should not shift their costs onto all other drivers,” said Campbell. “Senators should stop this unfair train wreck that is about to hit all Arizona drivers. Circumventing livery exclusions would make everyone pay for the activities of a few drivers and ride-sharing companies.”

Legislation on this issue has been introduced in Arizona, Colorado, Georgia and Oklahoma. Local ordinances governing ride-sharing programs have been introduced in Chicago, Dallas and Seattle.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.