American Property Casualty Insurance Association
  • Staff Contact: Brooke Kelley     
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  • March 4, 2015
  • PCI Commends Georgia House for Passage of Rideshare Bill
  • ATLANTA - The Property Casualty Insurers Association of America (PCI) praised the Georgia House for taking steps toward protecting drivers, passengers and public by passing House Bill 190 which closes the insurance coverage gaps associated with the commercial ridesharing activities of transportation network companies (TNCs). The bill passed on the House floor with overwhelming support by a vote of 141 to 26. It requires TNCs such as UberX and Lyft to have adequate insurance coverage from time the rideshare driver turns the app on until the app is turned off.

    “This is bill allows for innovative companies such as UberX and Lyft to continue operating in Georgia and puts important insurance protections in place,” said Logan McFaddin, PCI’s state government relations counsel.

    House Bill 190 is similar to a new California law which passed last year, AB2293. In California, both rideshare companies and insurance industry came together to develop this well-balanced law that protects the public and encourages new product innovation.

    “It’s important the drivers understand their typical standard personal auto policy contains a “livery” exclusion which applies when the vehicle is being used for hire,” added McFaddin. “Therefore, most personal insurance policies will not cover any damages or losses if a vehicle is being used for commercial use. House Bill 190 will close gaps in coverage throughout the entire time the vehicle is being used for hire.”

    There are already several insurers across the country offering hybrid polices that provide coverage options for drivers of transportation network companies. This is a clear example of insurers responding and meeting the ever changing needs of the marketplace.

    The bill will now head to the Senate.
  • 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.
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