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Your Guide to TNC Insurance Requirements

Buckle Team
August 9, 2022

TNC insurance requirements vary widely by state. What do you need to know about TNC insurance? Learn what to look out for when it comes to transportation network company insurance at Buckle.

If you're new to rideshare driving, you might be unfamiliar with transportation network company insurance. It can be challenging to get a handle on TNC insurance requirements, but Buckle is here to help.

This article will review the overall TNC insurance landscape and outline various state regulations regarding transportation company insurance. We'll also discuss how Buckle provides gig insurance with the coverage you need for your rideshare work.

TNC Insurance Backgrounder

As a TNC driver, you first need to understand that your personal auto insurance policy most likely does not cover rideshare work. The large personal transportation insurers generally have a clause against providing "livery services," and some will even cancel policies if they find the clause has been violated. Commercial auto insurance is one alternative, but it's expensive and can be cost-prohibitive for part-time drivers.

You also should know that the major TNCs offer limited insurance coverage while you're on app and none when you're off. Understanding what coverage is available and where the gaps might be is essential. That's where Buckle comes in. We provide Uber drivers insurance and rideshare insurance for Lyft drivers that can help ensure you get coverage that transportation company insurance may not offer.

TNC Insurance Template

In discussing TNC insurance, it's helpful to understand that TNCs, insurers and states divide your on-app time into three distinct segments:

  • Period 1: You've turned the app on, and you're waiting for a ride request
  • Period 2: You've accepted a ride and are on the way to pick the person up
  • Period 3: The person is in your car, and you're driving them to their destination

At least 51 U.S.states and territories have instituted some type of TNC insurance requirements. Some have created their own regulatory systems, while others have followed a template known as the TNC model bill, which was developed in a coordinated effort among personal auto insurers, TNCs and insurance trade associations.

The model bill recommends mandatory primary automobile liability coverage during Period 1 of at least $50,000 bodily injury per person, $100,000 bodily injury per incident and $25,000 property damage — and mandatory primary liability coverage during Periods 2 and 3 of at least $1 million for death, bodily injury and property damage. The coverage can be maintained by the TNC driver, the TNC or a combination of the two.

Under the model bill, there are no TNC insurance requirements concerning coverage for personal injury protection, medical payments, collision and comprehensive or underinsured/uninsured motorist coverage. The template allows a personal auto insurance policy to exclude coverage for rideshares.

Examples of State TNC Insurance Requirements

Each state is different, and you must know your state's TNC insurance requirements. Here are some examples of differing state insurance regulations.

Florida

Florida's TNC insurance statute differs somewhat from the TNC model bill. During Period 1, the state requires primary automobile liability coverage of at least $50,000 for death and bodily injury per person, $100,000 for death and bodily injury per incident and $25,000 for property damage. Florida also dictates personal injury protection benefits outlined in the Florida Motor Vehicle No-Fault Law — $10,000 for emergency medical disability, $2,500 for non-emergency medical and $5,000 for death.

Primary automobile liability coverage of at least $1 million for death, bodily injury and property damage is required for Periods 2 and 3. Uninsured/underinsured vehicle coverage is necessary for all three periods.

Illinois

In Illinois, TNC drivers are required to have at least $50,000 in coverage for death and personal injury per person, $100,000 for death and personal injury per incident and $25,000 for property damage during Period 1.  

For Periods 2 and 3, Illinois mandates coverage of at least $1 million for death, bodily injury and property damage. There's also a requirement for $50,000 in uninsured/underinsured motorist coverage for Period 3.

Pennsylvania

Pennsylvania's TNC insurance regulations also include at least $50,000 for death and bodily injury per person, $100,000 for death and bodily injury per incident and $25,000 for property damage during Period 1.

During Periods 2 and 3, the coverage requirements rise to at least $500,000 for death, bodily injury and property damage. Coverage must include first-party medical benefits of $25,000 for pedestrians and $5,000 for drivers during all three periods.

Trust Buckle With Your TNC Insurance Needs

Buckle has your back when it comes to TNC insurance requirements. Our expert staff can help you understand the coverage required for your rideshare work. Take just five minutes and get a no-obligation quote today.

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