American Property Casualty Insurance Association
  • Staff Contact: Brooke Kelley     
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  • September 15, 2015
  • Legislation Needed to Close Rideshare Insurance Gaps in Massachusetts
  • BOSTON –While the Property Casualty Insurers Association of America (PCI) supports new business models and competition in the marketplace, however, our top priority is to protect the people of Massachusetts and close the insurance gaps that leave Transportation Network Companies (TNC’s) drivers exposed.


    “House Bill 3351 is based off the national compromise agreement reached between the insurance industry and TNC’s which eliminates consumer confusion regarding insurance coverage and provides a framework for safe transportation options that support continued marketplace innovation,” said Frank O’Brien, vice president for PCI.


    PCI has been active nationally on insurance issues involving TNCs with both states and municipalities from the very beginning including the passage of the seminal California law and continuing through today as North Carolina earlier this month became the 27th state to approve legislation closing the insurance coverage gaps associated with TNCs. While there are several rideshare bills before the legislature, H. 3351 is a comprehensive bill which requires TNCs such as Uber X and Lyft to have adequate insurance coverage from time the rideshare driver turns the app on until the app is turned off.


    “It’s important the drivers understand their typical standard personal auto policy contains a “livery” exclusion which applies when the vehicle is being used for hire. H. 3351 allows for innovative companies such as Uber X and Lyft to continue operating in Massachusetts and puts important insurance protections in place and will close any insurance gaps throughout the entire time the vehicle is being used for hire,” added O’Brien.


    There are already several insurers across the country offering hybrid polices that provide coverage options for drivers of transportation network companies. “This is a clear example of insurers responding and meeting the ever changing needs of the marketplace,” said O’Brien.


    PCI will testify at today’s hearing in support of H. 3351 and Frank O’Brien will be available for media interviews.

  • PCI promotes and protects the viability of a competitive private insurance market for the benefit of consumers and insurers. PCI is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association. PCI members write more than $195 billion in annual premium, 35 percent of the nation's property casualty insurance. Member companies write 42 percent of the U.S. automobile insurance market, 28 percent of the homeowners market, 33 percent of the commercial property and liability market and 35 percent of the private workers compensation market.
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