American Property Casualty Insurance Association
  • Staff Contact: Brooke Kelley     
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  • August 11, 2016
  • Rideshare Drivers Now Have Proper Insurance Coverage in Delaware
  • DOVER, DE- Today, Governor Jack Markell signed SB 262 legislation that will protect the public by establishing reasonable insurance requirements for Transportation Network Companies (TNCs) and their drivers says the Property Casualty Insurers Association of America (PCI).

    “Transportation companies like Uber and Lyft are now virtually in every major city in the state, and while this trendy simple way of getting around town with the touch of an application on your smartphone is innovative SB 262 was necessary in order to protect the drivers and their passengers if an accident were to occur,” said Oyango Snell, state government relations counsel for PCI.

    Many rideshare drivers use their personal vehicles to tote around passengers, and what they might not know is their personal auto policy will not cover them if they are injured, or the vehicle is damaged in an accident.

    Personal auto insurance policies are not intended for commercial activities and contain a specific “livery” exclusion which bars coverage if the car is used to transport passengers for a fee.

    “These exclusions have been upheld in the courts for decades. Even if these ridesharing companies have insurance, it’s important to have clarity regarding how and when it will be triggered if an incident were to occur which is why this piece of legislation is so important,” added Snell.

    Senate Bill 262 establishes a solid framework for the operation of TNCs in the State of Delaware. The measure eliminates consumer confusion, provides a framework for safe transportation options, and supports continued marketplace innovation. Snell is available for additional 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 $202 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, 27 percent of the homeowners market, 33 percent of the commercial property and liability market and 34 percent of the private workers compensation market.
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