American Property Casualty Insurance Association
  • Staff Contact: Nicole Mahrt-Ganley     
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  • March 22, 2016
  • South Dakota Governor Signs Legislation Tackling Ridesharing Insurance Gaps
  • PIERRE, SD - South Dakota Gov. Dennis Daugaard (R) signed important legislation today addressing insurance gaps for commercial ridesharing drivers, said the Property Casualty Insurers Association of America (PCI).  House Bill 1091 was approved by the South Dakota Legislature March 10, 2016. 

    “House Bill 1091 protects ride sharing drivers and the public by ensuring there is appropriate and adequate insurance coverage from the time the ridesharing app is turned on until it is turned off,” said Melanie Smith, PCI state affairs regional manager.  “With the stroke of Gov. Daugaard’s pen, South Dakota became the 32nd state with a law requiring insurance coverage for drivers participating in ridesharing programs like Uber and Lyft.”

    The standard personal auto insurance policy includes a “livery” exclusion which prohibits coverage when the car is used for hire.  Drivers working for Transportation Network Companies were at risk of not having coverage if they had an accident while logged into the app before they pick up their passenger.  HB 1091 is based on a model developed by the National Conference of Insurance Legislators.  The bill requires $50,000 per individual and a total of $100,000 in coverage per accident when the driver is logged into the app but does not have a passenger.  HB 1091 requires $1,000,000 in coverage when a passenger is in the vehicle. 

    “Many insurers have jumped at the opportunity to design products to meet the needs of this new insurance market,” said Smith.  “We applaud the governor for quickly signing this legislation into law and we appreciate the hard work of Representative Mark Willadson and Senator Deb Peters who championed this bill through the legislative process.”

  • 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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