American Property Casualty Insurance Association
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Jeffrey Brewer


847-553-3671 or 847-894-3881





March 27, 2014

Illinois Ride Sharing Legislation takes Steps toward Ensuring Proper Consumer Protections

CHICAGO - The Illinois House Businesses and Occupational Licenses Committee passed legislation Amendment 1 to HB 4075 to regulate ride sharing networks and activities that provides a foundation for addressing insurance issues and protecting consumers statewide on a 9 – 2 vote yesterday, according to the Property Casualty Insurers Association of America (PCI).

“This legislation is a very good start toward ensuring that ride sharing activities are properly insured and that drivers, passengers and the public are protected if there is an accident,” said Jeffrey Junkas, regional manager for PCI. “While we encourage lawmakers to include additional elements that would clarify, strengthen and improve the consumer protections related to insurance, Illinois has an opportunity to set the bar for how other states address these critical issues.”

The City of Chicago is considering an ordinance on ride sharing, but PCI is advocating for a broader, uniform approach to these issues across the state.

“This is not just a Chicago issue,” said Junkas “It is just a matter of time until Champaign, Dekalb, Peoria, Carbondale, and other cities have similar services. This fact necessitates a statewide solution that keeps ride sharing companies and drivers informed and clear on their responsibilities.”

 Although the conflict over the business model of ride share firms and taxis is hot, PCI believes it is imperative not to lose sight that it is vitally important that the vehicles used in ride-sharing services are properly insured and the public is protected.

“Specifically, the drivers and their passengers need to understand that the driver’s personal auto policy will not cover damage or losses arising when the car is used in a ride-sharing program,” said Junkas. “Legislation on this issue must be clear regarding the commercial aspect of this activity. We want to remove any gaps that will generate legal disputes or shove the insurance exposure on to personal auto insurance, as that could force premiums for all drivers to increase.”


The bill now moves to the House floor for continued debate and consideration.

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.