American Property Casualty Insurance Association
  • Staff Contact: Brooke Kelley     
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Brooke Kelley-Hunt


847-553-3671 or 847-894-3881





July 25, 2014

Potential Insurance Gaps with Ride-Share Companies

LANSING, Mich.--The Property Casualty Insurers Association of America (PCI) supports innovation. However, drivers of transportation network companies (TNCs) such as Uber and Lyft, their passengers, and pedestrians need to be aware of the insurance gaps that could potentially put the public at risk. While this technology is impressive, it also presents major challenges for policymakers and insurers who have a vested interest in protecting the public.

“People using these services need to understand that the driver’s personal auto policy will not cover damages or losses when the car is used for commercial activity,” said Jeffrey Junkas, regional manager, state government relations for PCI. “While we support innovation and a competitive market, insurers want the public to know what’s covered if one of these TNCs is involved in an accident.” 

“While some TNCs have taken a step in the right direction by accepting some of their responsibility to insure their drivers during rides, their current approach still leaves gaps and could shift insurance costs unfairly onto all other drivers in Michigan, which already has a broken, expensive no-fault system,” said Junkas.

More than a dozen state insurance departments and public service commissioners have issued consumer alerts or advisories highlighting the potential insurance gaps in coverage for TNC activity and encouraging drivers to speak with their insurance company about their coverage options.

PCI has been out front on this issue on a national level and will continue to work with city officials and state lawmakers as we work to come up with a solution to close the gap.

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.