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

Kara Cross, PIFC


916-440-1116 or cell 916-616-5855





April 28, 2014

AB 2293 Fixes Insurance Gap and Lets TNC Drivers Know Before They Go

Five Insurance Trade Associations Support Measure Requiring TNCs to Have Coverage App On to App Off


SACRAMENTO, CA – Today, the California Assembly Utilities and Commerce Committee will consider legislation that will fix the insurance gaps that persist when Transportation Network Companies’ (TNCs) drivers use their personal vehicles to provide passengers a ride arranged through a smartphone app for a fee.   AB 2293 (Bonilla (D-Concord) closes the gaps in insurance coverage and requires TNCs to give drivers important disclosures. 


“Legislators should support AB 2293 today because this measure will establish the necessary insurance rules that will protect drivers, passengers and the public using TNC ride sharing services,” said Kara Cross, PIFC general counsel.  “The public and passengers need to know TNC services have the appropriate insurance coverage in place and TNC drivers need to fully understand that their personal insurance policy will not provide coverage when they drive for a TNC.  This bill requires TNCs to make key disclosures to their drivers and requires TNCs to carry insurance app on to app off.”


Five property casualty insurance trade associations, representing nearly 100 percent of the California market offering both commercial and personal auto insurance, are supporting AB 2293.  The trade associations include the American Insurance Association, the Association of California Insurance Companies, the National Association of Mutual Insurance Companies, the Pacific Association of Domestic Insurance Companies and the Personal Insurance Federation of California.  These five trades want the public to fully understand that the personal auto insurance policy does not cover the riskier and more costly commercial driving.


“As both commercial and personal auto insurers, we believe the TNC service and commercial activity begins once the TNC driver turns on the “app” which indicates that driver is “open and available” for TNC services,” said Armand Feliciano, ACIC vice president.  “Insurers strongly support innovation and constantly develop new products to meet ever-changing market demands.  AB 2293 is carefully crafted legislation that will clarify the insurance laws related to TNC activities without stifling business innovation.  Drivers should know where they stand and be aware of how insurance works when they use their personal vehicle for commercial purposes.” 


AB 2293 AB 2293 will do four things:


1) Require TNCs to disclose to drivers upfront that their personal insurance may not apply when engaging in commercial TNC activities. 


2)  Define in statute that TNC activities begins once the “app” is turned on and the TNC services end when the “app” is turned off. 


3) AB 2293 clarifies that TNC insurance is primary coverage.


4) Require TNC’s liability insurance to defend and indemnify their drivers when they have a claim or accident.


AB 2293 will be heard in the Assembly Utilities and Commerce on Monday, April 28, 2014 at 3:00pm.