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Insurance regulators address ridesharing insurance coverage gaps

News: 2015 Press Release

For Release: April 1, 2015
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Insurance regulators address ridesharing insurance coverage gaps
Commissioner Jones leads national Sharing Economy Working Group

SACRAMENTO, Calif. - The National Association of Insurance Commissioners (NAIC) adopted a white paper addressing the insurance coverage gaps associated with ridesharing services offered by Transportation Network Companies (TNCs) such as Sidecar, Lyft and Uber.

The white paper was issued to assist state insurance regulators and state legislators throughout the United States who are considering how best to address insurance coverage gaps associated with TNCs and ridesharing. Legislation is pending in at least 35 states.

Commissioner Dave Jones' work in California highlighting insurance coverage gaps led California to pass one of the first laws in the nation to require TNCs to provide insurance coverage for drivers. Commissioner Jones chairs the NAIC's Sharing Economy Working Group, which developed the white paper.

The paper, Transportation Network Company Insurance Principles for Legislators and Regulators, outlines insurance consideration to guide state and local policymakers when adopting laws or regulations regarding TNCs. 

"New technology and new business models are important drivers of competition and economic growth," said California Insurance Commissioner Dave Jones. "With any new consumer service, technology or business model like ridesharing, it is also important to make sure consumers are protected and insurance coverage is provided or available."

The paper discusses the perspectives of the insurance industry, TNCs, traditional livery services like cabs and limousines, regulators, drivers and passengers. It also recommends a range of potential state based regulatory solutions. Issues including insurance coverage gaps, coverage amounts and types of coverage are discussed, as well as the need for consumer outreach and education regarding these new transportation services. 

"States across the country are grappling with the issue of how best to make sure TNC drivers, passengers, pedestrians and other drivers are covered when there is an accident with a TNC driver," said Commissioner Jones. "Traditional personal auto insurance policies do not typically provide coverage, so there are insurance coverage gaps that states need to address. This is an area where insurance regulators and state legislators in each state can work together to make sure that consumers are protected."

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About the NAIC:

The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review and coordinate their regulatory oversight. NAIC staff supports these efforts and represent the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. For more information, visit

Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.

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