MONTGOMERY, Ala.- Logan McFaddin, state government relations regional manager for the Property Casualty Insurers Association of America (PCI), issued the following statement after Alabama Governor Bentley signs rideshare bill into law closing the insurance gap.
“SB 262 is a common sense approach to regulating transportation network companies (TNCs) that requires their drivers to have insurance coverage from the time the ride-hailing app is turned on, until it’s turned off.
“Many TNC drivers may not realize their personal auto insurance policies contain a specific livery exclusion which bars coverage if the car is used to transport passengers for a fee. SB 262 was needed to bring clarity and close the insurance coverage gaps and other issues that could leave the public at risk.
“PCI continues to be out front on this issue, and commend both the Alabama Legislature and Governor Bentley for addressing the insurance issues while supporting innovation and bringing greater stability and confidence to the transportation network industry in Alabama.”
Alabama is the 35th state to pass similar rideshare legislation. In addition to Alabama, other states enacting TNC legislation this year include Iowa, Mississippi, New Mexico, South Dakota and West Virginia. A measure in Missouri recently passed its Legislature and will be sent to the Governor.