Insurance Requirements for TNCs
The current insurance requirements are summarized below:
TNC services are defined by three periods:
Period 1: App open - waiting for a match.
- Period 1 - TNCs shall provide primary insurance in the amount of at least fifty thousand dollars ($50,000) for death and personal injury per person, one hundred thousand dollars ($100,000) for death and personal injury per incident, and thirty thousand dollars ($30,000) for property damage. TNCs may satisfy this requirement through: (a) TNC insurance maintained by the driver; (b) TNC insurance maintained by the TNC that provides coverage if a driver does not maintain the required TNC insurance, or if the driver's TNC insurance ceases to exist or is cancelled; or (c) a combination of (a) and (b).
- TNCs shall also maintain insurance coverage that provides excess coverage insuring the TNC and the driver in the amount of at least two hundred thousand dollars ($200,000) per occurrence to cover any liability arising from a participating driver using a vehicle in connection with a TNC's online-enabled application or platform. TNCs may satisfy this requirement through: (a) TNC insurance maintained by the driver, if the TNC verifies that the driver's TNC insurance covers the driver's use of a vehicle for TNC services; (b) TNC insurance maintained by the TNC; or (c) a combination of (a) and (b).
Period 2: Match accepted - but passenger not yet picked up (i.e. driver is on his/her way to pick up the passenger).
Period 3: Passenger in the vehicle and until the passenger exits the vehicle.
- Periods 2 and 3 - TNCs must provide primary commercial insurance in the amount of one million dollars ($1,000,000). TNCs may satisfy this requirement through: (a) TNC insurance maintained by the driver, if the TNC verifies that the driver's TNC insurance covers the driver's use of a vehicle for TNC services; (b) TNC insurance maintained by the TNC; or (c) a combination of (a) and (b).
- Period 3 - TNCs shall also provide uninsured motorist coverage and underinsured motorist coverage in the amount of one million dollars ($1,000,000) during Period 3 (i.e., from the moment a passenger enters the vehicle until the passenger exits the vehicle). TNCs may satisfy this requirement through: (a) TNC insurance maintained by the driver, if the TNC verifies that the driver's TNC insurance covers the driver's use of a vehicle for TNC services; (b) TNC insurance maintained by the TNC; or (c) a combination of (a) and (b). The policy may also provide this coverage during any other time period, if requested by a participating driver relative to insurance maintained by the driver.
Other requirements related to TNC insurance:
TNCs shall disclose to their drivers:
- the insurance coverage and limits of liability that the TNC provides while the driver uses a vehicle in connection with a TNC's online-enabled application or platform.
- that the driver's personal automobile insurance policy will not provide coverage because the driver uses a vehicle in connection with a TNC's online-enabled application or platform.
- that the driver's personal automobile insurance policy will not provide collision or comprehensive coverage for damage to the vehicle used by the driver from the moment the driver logs on to the TNC's online-enabled application or platform to the moment the driver logs off the TNC's online-enabled application or platform. (Public Utilities Code Section 5432)
In a claims coverage investigation, a TNC or its insurer shall cooperate with insurers that are involved in the claims coverage investigation to facilitate the exchange of information. (Public Utilities Code Section 5435)
TNC drivers shall be required to provide proof of both their personal insurance and the commercial insurance in the case of an accident. (Decision 13-09-045 Safety Requirement b)
For the current list of TNC Permits Issued and to check their current status, click here.