California Commissioner: TNCs Responsible for Insurance

Updated story: California Commissioner Wants Insurance Burden on Ridesharing Companies

Transportation Network Companies like such as Uber, Lyft and Sidecar should bear the insurance burden when they encourage non-professional drivers to use their personal vehicles to transport passengers for a profit, said California Insurance Commissioner Dave Jones.

Jones’ recommendation was made to the California Public Utilities Commission, which oversees TNCs in California. His recommendation stems from a recent Department of Insurance investigative hearing in which insurers, TNC operators and taxi and limo operators squared off on the issue of how insurance should be handled.

dave-jones“While smartphone technology is bringing new business opportunities to the marketplace and new transportation choices for consumers, our investigative hearing revealed serious insurance gaps in the current business model of transportation network companies such as Uber, Lyft and Sidecar,” Jones said in a statement. “As long as TNCs are encouraging non-professional drivers to use their personal vehicles to drive passengers for a profit, a risk which personal automobile insurance simply does not cover, TNCs should bear the burden of making sure that insurance is provided. Our recommendations will ensure there is insurance protection for passengers, drivers and pedestrians.”

Jones’ recommendations include:

The commissioner’s letter and complete recommendations to the CPUC can be found on the department’s website.