American Property Casualty Insurance Association
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Jeffrey Brewer







May 15, 2014

Illinois Senate Passes Ride Share Legislation with Consumer Protections


CHICAGO – The Illinois Senate passed legislation (HB 4075) today which goes a long way toward ensuring that transportation networking firms (TNCs) that use technology to connect drivers with riders for a fee are properly insured and the public is protected, according the Property Casualty Insurers Association of America (PCI).  HB 4075 was approved 46 to 8 on a bipartisan vote.

The Senate followed the House in advancing the bill on a strong bi-partisan vote. House Bill 4075 will establish regulations on TNCs that are like those that apply to other similar commercial driving activities. In addition to requiring background checks on drivers, vehicle inspections, and chauffeur licenses for drivers who work more than 18 hours a week, the bill clarifies an important insurance coverage question by establishing that the TNC firms’ commercial insurance coverage is primary and that it is in effect the entire time a driver’s app is on and is available to accept a ride or has a passenger.

“This legislation is a positive step forward and sets a reasonable standard to ensure that the public is protected if there is an accident while allowing this innovative new market to continue to grow,” said Jeffrey Junkas, regional manager for PCI. “Additionally, it establishes a uniform statewide solution to ride sharing regulations. Addressing the insurance gap regarding when the TNC’s coverage applies was important because a driver’s personal auto policy typically excludes damage or losses arising when the car is used in a commercial activity like a ride-sharing program. This provision will help to ensure that commercial insurance exposure is not inappropriately shifted to personal auto insurance, as that could force premiums for all drivers to increase.”

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.