American Property Casualty Insurance Association
  • Staff Contact: Nicole Mahrt-Ganley     
    • Printer-Friendly Printer-Friendly PDF Export PDF Export

  • January 15, 2015
  • Colorado’s New Ride Sharing Law Takes Effect and Provides Certainty of Insurance Coverage for TNC Drivers and Passengers
  • DENVER, CO – Today, the first bill in the nation to close the insurance gap for Transportation Network Companies (TNCs) goes into effect in Colorado.  The new law, created by SB 125, enables TNCs to continue operating in Colorado by regulating ride sharing companies and requiring TNCs to provide their drivers with primary insurance coverage app on to app off, said the Property Casualty Insurers Association of America (PCI).

    “Colorado’s  law breaks new ground by requiring TNCs or their drivers to carry primary insurance coverage for all commercial activity from the time the driver logs into the app until the passengers are dropped off and the driver logs off from the app and is no longer available to provide rides,” said Kelly Campbell, PCI vice president.  “This law allows certainty of insurance coverage for TNC drivers and their passengers while encouraging innovation in the insurance market so new products can be developed to meet the needs of TNC drivers.”

    SB 125 was necessary because the personal auto insurance policy contains specific livery exclusions and does not provide for or price the costs associated with TNC’s riskier commercial driving. 

    “Colorado’s new law clearly states that the personal auto policy is not required to provide coverage for TNC services,” said Campbell.  “This important step will ensure TNC drivers have insurance options while protecting all other Colorado drivers from being at risk of higher insurance costs to subsidize the TNCs insurance expenses.”

  • 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.
  • ###