American Property Casualty Insurance Association
  • Staff Contact: Nicole Mahrt-Ganley     
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Nicole Mahrt-Ganley


916-616-5855 or 916-479-2670





April 15, 2014

Arizona Drivers at Risk of Paying More Because Ride-Share Companies Don’t Have Primary Insurance Policies

PCI says HB 2262 puts all Arizona drivers at risk of paying higher costs


PHOENIX – This week the Arizona State Senate will debate a bill pushed by ride-sharing companies that shifts their insurance responsibility and costs onto all Arizona drivers. With HB 2262, Arizona drivers could 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 using their personal car with paying passengers as part of an organized program.  HB 2262 triggers the ride-sharing company’s insurance coverage when a driver for a ride sharing firm 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 needs more work to fix the insurance problems,” said Kelly Campbell, PCI vice president for state government relations. “All Arizona auto insurance customers should not be at risk of paying higher insurance costs because ride sharing companies don’t want their insurance policy to be the primary policy.  Arizona senators should adopt amendments to HB 2262 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.

“Ride-sharing programs should not shift their costs onto all other drivers,” said Campbell. “Personal auto insurance should not be primary for commercial activity.  Senators should fix HB 2262 before it could drive up auto insurance costs.”

Legislation on this issue has been introduced in Arizona, California, Colorado, Florida, Georgia, Illinois, Maryland 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.