Industry Issues | Transportation Network Companies

Transportation Network Companies

PCI Supports Innovation while Fixing Transportation Network Company Insurance Gaps

California Governor Signs TNC Legislation with Strong Consumer Protections

AB2293_Ad California Gov. Jerry Brown signed PCI supported AB 2293 which will protect the public by establishing reasonable insurance requirements for Transportation Network Companies (TNCs) and their drivers. AB 2293, sponsored by Assemblywoman Susan Bonilla, also creates a firewall that protects personal auto insurance policyholders from subsidizing commercial activities and gives TNCs flexibility to meet the new insurance requirements.

This well-balanced law, which was supported by the insurance industry as well as the TNCs, protects the public and encourages new product innovation. Other states examining how to balance insurance and TNCs can look to AB 2293 as a great starting place. The new law will require app on to app off coverage and ensures that the California Public Utilities Commission has oversight of TNC activities.

PCI has been adamant across the country that TNC legislation address the gaps in insurance coverage and ensure drivers, passengers and the public are protected if there is an accident. Additionally, PCI has been actively seeking to establish appropriate disclosures for drivers and passengers as well as clarity regarding what insurance coverage is being provided, when it’s being provided and by whom. Personal auto policy were not intended to cover damage or losses arising when the car is used in a ride-sharing program. PCI opposes legislative efforts to shift the commercial insurance risk and cost of ride share programs on to other motorists.

Earlier this year, Arizona Gov. Jan Brewer vetoed House Bill 2262, which would have forced personal auto insurers to cover the riskier driving behavior of TNC drivers while they troll for business. In Colorado, Gov. John Hickenloopper signed Senate Bill 125 that sets up the framework for TNCs to provide primary insurance coverage for all commercial activity, including when the driver logs onto their app and is available for hire through the time period when they have a passenger in the vehicle and until the driver logs off the app and is no longer available to accept rides.

Stay abreast of TNC legislative and regulatory developments with PCI’s Issue Status Map.