Ride-Sharing: What Every Agent Should Know About ItUBER/Lyft/SideCar: • Transportation Network Company Driver or TNC Driver is an individual who, on behalf of a Transportation Network

Ride-Sharing: What Every Agent

Should Know About It

Educat ion Educat ion P r o g r a m SP r o g r a m S

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Ride-Sharing: What Every Agent Should Know About It

Presented by: Donna M. McKennaMAIA VP of Communications

November 14, 2015 – 3:15 – 4:15 PM

What is Ride‐Sharing?

There are three different types of ride‐sharing or car‐sharing programs. Here is a brief description of them:

1. UBER/Lyft/SideCar: These services, known has transportation network companies, use smartphone communications technology to allow customers to hail a driver electronically to provide them with a ride for a fee.

2. FlightCar/RelayRides/GetAround and Other Ride‐Sharing Services: These services help a vehicle owner rent his/her car to others for a fee through this ride‐sharing service.

3. Zipcar/uhaulcarshare: This is a service where Zipcar/ uhaulcarshare members rent cars owned by Zipcar or uhaulcarshare for personal or business use.

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Do You Have Clients Involved in Ride‐Sharing?

Since most of the vehicles involved in the first two types of ride‐sharing services are most likely insured under a MAP, here is how the policy would (or would not) respond to a claim:

1. UBER/Lyft/SideCar:If you are the driver or owner of the vehicle:

A. Excludes coverage for “anyone injured while occupying your auto while it is being used as a public or livery conveyance.”

B. Specifically excludes Property Damage and all Optional Insurance Parts

C. Vehicles used in this manner would not be eligible for the MAIP or CAR but could be eligible for the Taxi/Limo/Car Service program … but only if they display taxi or livery plates.


1. UBER/Lyft/SideCar: If you are a passenger in the vehicle:

A. Your own policy’s Personal Injury Protection, Uninsured Motorist, Optional Bodily Injury, Medical Payments, and Underinsured Motorist coverages follow you as a passenger in your own vehicle or someone else’s vehicle.

B. Your policy would not be primary. The owner’s policy must pay its limits before your policy will respond.

There’s an issue with the plate type for these transportation network vehicles. Here is how the plate definition regulation 540 CMR 2.05 defines these companies, vehicles and drivers under the Private Passenger Plate definition:

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1. UBER/Lyft/SideCar:TNC Definitions:

• Transportation Network Company is a corporation, partnership, sole proprietorship, or other entity operating in Massachusetts that, for consideration, will arrange for a passenger to be transported from an agreed‐upon point of departure to an agreed upon destination by a driver. A Transportation Network Company must hold a valid Transportation Network Company Certificate issued by the Department of Public Utilities or a notice issued by the Department of Public Utilities within the preceding six months certifying that, as of the date of the notice, the Department of Public Utilities is not issuing Transportation Network Company Certificates.


1. UBER/Lyft/SideCar:

• Transportation Network Company Driver or TNC Driver is an individual who, on behalf of a Transportation Network Company, provides Transportation Services to TNC Riders.

• Transportation Network Company Rider or TNC Rider is any passenger who is transported by a TNC Driver for consideration and whose transportation is arranged by a TNC.

• Transportation Services are the transportation of a passenger between points chosen by the passenger for consideration.

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Private Passenger Motor Vehicle, is any vehicle:

(a) which has a vehicle weight rating or curb weight of 6,000 lbs. or less as per manufacturer's description of said vehicle or is a sport utility vehicle or passenger van; or which is a pickup truck or cargo van of the ½ TON, ¾ TON or one TON class as per manufacturer's description of said vehicle; or which is a vehicle used solely for official business by any college or university police department whose officers are appointed as special police officers by the colonel of the state police under M.G.L. c. 22C, §63; and,



Private Passenger Motor Vehicle, is any vehicle:

(b) which, if a pickup truck or cargo van, is registered or leased to an individual, and is used exclusively for personal, recreational, or commuting purposes; and,

(c) which, other than a Personal Transportation Network Vehicle, is not described in elsewhere in 540 CMR 2.05. Pleasure Vehicle, Passenger Vehicle, Passenger Car, Automobile and Pleasure Passenger vehicle are synonymous with Private Passenger Motor Vehicle as defined in 540 CMR 2.05: Private Passenger Motor Vehicle. For the avoidance of doubt, Private Passenger Motor Vehicle shall include, but not be synonymous with, Personal Transportation Network Vehicle.

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Insurance for Ride‐Sharing Vehicles: How it Works …

2. FlightCar/RelayRides/GetAround and Other Ride‐Sharing Services:If you are the owner of the vehicle:

A. Your vehicle would not qualify for a MAP because the vehicle does not meet the private passenger definition: a motor vehicle of the private passenger or station wagon type that is owned or leased under contracts for a continuous period of at least twelve months by one or more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated business associations, and (4) other legal business entities with a federal employer identification number, and is not used as a public or livery conveyance nor rented to others.


2. FlightCar/RelayRides/GetAround and Other Ride‐Sharing Services:If you are a passenger in the vehicle someone else is renting:

A. Your policy’s Personal Injury Protection, Uninsured Motorist, Optional Bodily Injury, Medical Payments and Underinsured Motorist Coverage will follow you as a passenger in your own or someone else’s vehicle.

B. Your insurer would be looking for the owner’s policy to pay its limits first.

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2. FlightCar/RelayRides/GetAround and Other Ride‐Sharing Services:If you are the driver (renter) of the vehicle:

A. Your policy’s Personal Injury Protection, Uninsured Motorist, Optional Bodily Injury, Medical Payments and Underinsured Motorist Coverage will follow you as the driver of someone else’s vehicle.

B. Your Collision, Limited Collision and Comprehensive Coverages on non‐owned private passenger vehicles as long as you don’t regularly use the rented vehicle.

C. Your insurer would be looking for the owner’s policy to pay its limits first.

Insurance for Ride‐Sharing Vehicles: How it Works …3. Zipcar/uhaulcarshare:

If you are the driver of the vehicle:

A. Zipcar/uhaulcarshare members are free to drive cars by the hour or day with gas and insurance included. Sedans, hybrids, vans and more are available in neighborhoods, cities and airports around the world.

B. If the member has a personal auto policy, the policy would follow the member when renting a personal automobile with the permission of the owner as long as the member is not regularly using the same car. If the member will use the same car often, the “Use of Other Auto” endorsement could be added.

C. Extension of the coverage under the personal auto policy is not worldwide and would be limited to the U.S., U.S. territories and possessions, Puerto Rico and Canada.

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3. Zipcar/uhaulcarshare:If you are a passenger in the vehicle:

A. If you are a passenger in a car someone else is renting from Zipcar or a similar service, your policy’s Personal Injury Protection, Uninsured Motorist, Optional Bodily Injury, Medical Payments and Underinsured Motorist Coverage will follow you as a passenger in your own or someone else’s vehicle.

B. Your insurer would be looking for the owner’s policy to pay its limits first.


Insurance for Ride‐Sharing Vehicles: What’s Covered and What’s Not …

According to a series of Questions and Answers on Ride‐Sharing developed by the Property Casualty Insurers Association of America, Ride‐Share drivers have personal automobile insurance, and the TNCs say they have $1 million commercial liability insurance, isn’t that enough?

The insurance gap isn’t about how much insurance there is as much as it is about when it applies. All of the coverage supplied by the TNCs are “contingent” on the driver’s personal lines policy not providing coverage. While the TNCs may interpret personal auto insurance policies as providing some coverage for TNC activities, insurers clearly do not interpret their policy language that way.

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Personal auto insurance policies are not intended to cover the higher risks associated with using a car for commercial purposes. Just about every standard auto insurance policy contains some form of a livery exclusion which means carrying passengers for hire. As a result, any damages or losses sustained when the car is being used for TNC activities will not be covered by the personal auto policy. Additionally it will not provide coverage for the driver or passenger if they are hit by an uninsured or underinsured driver. There is also no coverage to repair the driver’s vehicle if it is damaged while in use as a ride‐sharing vehicle.


Addressing the Gray Area: With TNCs’ coverage contingent on the drivers’ personal lines insurer denying a claim, there is uncertainty that creates opportunities for disputes. Each claim has to be reviewed and if the personal lines insurer denies coverage, the TNC can dispute the insurer’s coverage determination. This process creates delays in compensating victims, higher claims handling costs and legal fees.

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TNC insurance coverage should be primary and apply exclusively at all times while a driver is signed up for a ride sharing program. This approach establishes a bright line regarding coverage and reduces the opportunity for disputes that is inherent in having TNC coverage contingent on the driver’s personal lines insurer denying coverage.

TNC CHALLENGES COVERAGE DETERMINATION

PERSONAL LINES INSURER DENIES CLAIM

ACCIDENT OCCURS

INSURER AND TNC BATTLE OVERCOVERAGE

DELAY IN COMPENSATING VICTIM, ADDED CLAIMS HANDLING COSTS AND LEGAL FEES

The insurance gap isn’t about how much insurance there is … it is about when it applies.

Contingent Insurance Coverage Flow Chart


TNC Ridesharing Insurance Coverage Periods:TNC drivers are providing services during the three Ride‐Sharing Activity Periods, therefore the TNC coverage should be primary and apply exclusively during all three periods to close the insurance gap.

PERIOD ONE:App On—Waiting

for a Match

PERIOD TWO:Match Made –

Passenger not yet in car

PERIOD THREE:When passenger enters; until they exit

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UBER and Lyft’s Insurer Explains Three Coverage Periods:In a recent interview with “Rough Notes”, John G. Clarke, CPCU, Senior Vice President and Director of Marketing for James River Insurance Company, explained the three stages of coverage.

Period One is when the TNC driver is logged on to the driver app for a TNC.

Period Two begins when a passenger uses the app to request a driver, and a particular driver accepts the ride. The driver uses the app to say he’ll take the ride, and the passenger gets a confirmation on his phone saying the driver is on his way.


Period Three is when the passenger is on board and being driven to his destination. When the passenger gets out of the car, that transportation service is completed. Then the driver, if he’s still on the app, is back in Period One again.

According to Clarke, “Coverage works differently depending on the period. In Periods Two and Three, coverage provided by the TNC is primary, and the driver’s private passenger auto carrier is not involved at all.”

Continued Clarke, “The TNC policy is written on a combined single limit basis using an ISO commercial auto form and provides uninsured and underinsured motorists coverage, PIP in the states where it is required, and meets other state requirements for limits …”

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UBER and Lyft’s Insurer Explains Three Coverage Periods:“Also during Periods Two and Three, both Uber and Lyft provide physical damage (comp and collision) to cover the driver’s vehicle if the driver already carries physical damage on his or her in‐force PPA policy.

“The coverage is provided at no cost to the driver,” Clarke explains. “Drivers should check with the TNC for specific information about the deductible under the physical damage coverage to make sure they understand what will have to come out of their own pocket in the event of a comp or collision claim.”

Insurance for Ride‐Sharing Vehicles: Limits of Liability …

UBER and Lyft’s Limits for Each Coverage Period:In Period One the TNC provides a $50,000 BI per person/$100,000 per occurrence/$25,000 property damage policy that is structured like a typical PPA policy.

The Period One policy is contingent on the private passenger auto carrier not providing coverage. This is the gray area that is beginning to be clarified by legislation in many states.

A year ago, if a PPA insurer found out that one of its insureds was driving for one of the transportation network companies, many were quick to simply cancel the policy (not an option in MA where non‐renewal is the only option).

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Both UBER and Lyft have been working with private passenger auto companies to encourage them to come up with a solution for drivers, especially for Period One.

Several carriers have added coverage for ridesharing in Period One via either endorsement or new policy wording including Allstate, Farmers, GEICO, Liberty Mutual, MetLife Progressive, State Farm, and USAA (although we have not seen anything placed on file for use in MA).

In addition, Erie Insurance is offering its insureds a “business use” coverage designation, available initially in Illinois and Indiana. And a startup company called Metromile, a managing general agency for National General Insurance, provides coverage for UBER drivers in California, Illinois, and Washington.


ISO has introduced two new personal auto coverage options for ridesharing drivers when they’re logged into a transportation network company’s app but don’t have any passengers.

One coverage option would apply from the time the driver logs into the TNC platform via a mobile device until he or she has accepted a ride request.

The other would apply from when the driver logs into the TNC platform up until a passenger occupies the vehicle.

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AIB has introduced a Personal Vehicle Sharing Exclusion which says: “We will not pay any claim for injury or property damage under the policy, while your auto is being used in a personal vehicle sharing program. Such programs allow the use of your auto by a person other than you or a household member under an agreement and with payment to you. This exclusion does not apply to Personal Injury Protection (Part 2).”

This exclusion would apply to the second type of ride‐sharing vehicle … FlightCar/RelayRides/GetAround … where the service helps the owner rent his/her car to others for a fee.

Ride‐Sharing Vehicles Examples –Uber/Lyft

1. Your Client, a 25 year old who owns a fairly new 4‐door Honda Accord, calls to tell you he is considering becoming an Uber driver. He wants to know if his Massachusetts Auto Policy will cover him while he’s driving someone around.

a) Sure, why not?

b) How lucky are we feeling today????

c) NO NO NO NO NO!!!!!!!!!!!!!!!!!!!!!!!

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1. This question is being asked a lot these days. Unfortunately, the Massachusetts Personal Automobile Policy excludes coverage for “anyone injured while occupying your auto while it is being used as a public or livery conveyance.” Specifically, the policy excludes damage to someone else’s property as well as any optional insurance coverage including Optional Bodily Injury to Others, Medical Payments, Collision, Limited Collision, Comprehensive, Substitute Transportation, Towing and Labor and Bodily Injury Caused by an Underinsured Auto “while your auto is being used as a public or livery conveyance.”

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1. Since there is no coverage under the MAP for this exposure, Uber drivers/vehicles are NOT eligible to be placed in the MAIP. They are also not eligible to be placed in CAR’s commercial auto plan. Uber vehicles/drivers would, however, be eligible to be placed in CAR’s Taxi/Limo/Car Service program … BUT, the Taxi/Limo/Car Service program requires vehicles to have appropriate taxi or livery plates.

The TNC regulation permits Uber/Lyft vehicles to have private passenger plates which makes them ineligible.

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Ride‐Sharing Vehicles Examples – Flightcar

2. Your client calls you to report a claim. His vehicle was totaled while being driven by someone other than your client or a household member. You are FINALLLY able to determine that your client is a member of Flightcar. Whenhe travels for business, he makes his car available for rent through Flightcar to travelers visiting Boston for business or pleasure. In return, your client receive a $10 daily rental payment, free parking while he is away, a free car wash and free storage of personal items left in his vehicle. Will your client’s policy cover the damage to his vehicle?

a) Yes, as long as the vehicle is being used with your permission.

b) No, no, no, no, no!!!!

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2. Flightcar advertises that there is a $1 million liability coverage to protect the vehicle owner when being used by a renter. Flightcar also states that collision, theft and “damage” insurance is available to cover the ENTIRE valueof the car! Flightcar states that it will also cover mechanical breakdown that results from improper usage of the vehicle during the rental. Flightcar also states it will “arrange a car for use” if the vehicle is stolen or damaged and not available for the owner’s use. It sounds too good to be true. I, personally, would like to see the policy, but I’m sure your client’s don’t care.

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2. If one believes everything they read …then supposedly the MAP will NOT have to be involved when the vehicle is “rented” to one’s fellow traveler. However, how long will the claims process take under the car‐sharing/renting firm’s insurance, and exactly how does the policy read?

Must the MAP carrier be informed of this new and interesting activity even though, supposedly, it won’t have to be involved? I think so. This IS an increase in risk whether or not the MAP ultimately has to pay out. This COULD be considered a business activity depending on the number of rental situations.

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2. We should NOT forget the infamous General Provision 18 Failure to Furnish Information and 19 Changes Which Affect Premium.

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2. The policy obligates an insured to discuss changes in exposures DURING the policy period … or bad things can happen such as claim denial.

If there is a renewal questionnaire, then the insured is obligated to discuss a change in exposure.

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2. The AIB renewal questionnaire language states:It will not be necessary to return this form to your agent or company representative unless you wish to make any changes or unless the information contained on the Coverage Selections Page and in the form is inaccurate or obsolete. You must inform us of any changes which may have a material effect on your insurance coverage or premium charges, including the description, ownership, type of usage and place of garaging of the auto(s) and the household members and individuals who customarily operate the auto(s).

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2. There is also a question about “business”. A normal client might not think what they are doing IS a business … but let’s face it … anyone with half a brain has to realize that this IS changing the “type ofusage.” Every year the insured receives a Coverage Selections Page (declarations page). If the companystill uses the AIB model, then either the back of the coverage selections page or the second page of the coverage selections page states:

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2. NOTICE: You must notify us of changes that have occurred prior to the renewal of this policy and during the policy period. It is a crime to knowingly provide false or fraudulent information for the purpose of defrauding an insurance company. If you or someone else on your behalf has knowingly given us false, deceptive, misleading or incomplete information and if such false, deceptive, misleading or incomplete information increases our risk of loss, we may refuse to pay claims under any or all of the Optional Insurance Parts and we may cancel your policy. Such information includes the description and the place of garaging of the vehicle(s) to be insured, the names of all household members and customary operators required to be listed and the answers given above for all listed operators. We may also limit our payments under Part 3 an Part 4. Check to make certain that you have correctly listed all operators and the completeness of their previous driving records. The Merit Rating Board may verify the accuracy of the previous driving records for all listed operators.

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2. The AIB auto application does not ask if the vehicle is rented to others, yet Rule 27 in the AIB and MAIP manuals state that a vehicle rented to others is NOT ELIGIBLE for a MA personal auto policy.

A motor vehicle of the private passenger or station wagon type that is owned or leased under contract for a continuous period of at least twelve months by one or more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated business associations, and (4) other legal business entities with a federal employer identification number, and is not used as a public or livery conveyance nor rented to others. A vehicle which meets the conditions of Rule 31, regarding the transportation of fellow employees, students or others for consideration, is included in this definition, provided such vehicle is not registered for carrying passengers for hire.

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2. Many companies have adopted the Personal Vehicle Sharing Exclusion –M‐0108‐S:

MASSACHUSETTS ENDORSEMENT – M‐0108‐S

Personal Vehicle Sharing Exclusion

We will not pay any claim for injury or property damage under the policy, while your auto is being used in a personal vehicle sharing program. Such programs allow the use of your auto by a person other than you or a household member under an agreement and with payment to you. This exclusion does not apply to Personal Injury Protection (Part 2).

[Ed. 09‐13]

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3. My client called us regarding a “ZipCar.” He wants to use ZipCars when he travels for business because it’s cheaper than traditional car rental agencies.

Will his MA auto policy cover him when using ZipCars all over the country?

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A Couple More Examples – ZipCar

3. ZipCar members are free to drive cars by the hour or day with gas and insurance included. ZipCar sedans, hybrids, vans and more are available in neighborhoods, cities and airports around the world.

If a ZipCar member has a personal auto policy, the member’s policy would follow when renting a personal automobile with the permission of the owner as long as the member is not regularly using the same car. If the member will use the same car often, the “Use of Other Auto” endorsement could be added. Extension of coverage under the personal auto policy is not worldwide and would be limited to the United States, the U.S. territories and possessions, Puerto Rico, and Canada.

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A Couple More Examples – ZipCar

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4. My client is the matron of honor for her sister’s upcoming wedding. She is hosting a Bachelorette party for her sister… a pub crawl around Boston. She and one of the other bridesmaids are planning to drive the group to the first pub in their minivans and then have two AmRide drivers meet them and take over the driving when the group moves to the next pub. The client wants to be sure that there will not be any insurance issues in the event there is an accident. Will your clients’ personal auto policy respond if the AmRide driver is involved in an accident and one of the bridesmaids is injured?

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A Couple More Examples –AmRide

4. With AmRide, I’m hiring someone to drive my car… could that be an employee? I’m providing the “tools” and directing what you do … would I need W/C?

This concept has been around for years … people paying others to drive their car to say … Florida … for them, so they can take the plane. Unless I hire the same person (driver) too much, I wouldn’t have to tell my auto carrier… the vehicle owner is not “committing” a public or livery conveyance activity … the driver very well could be. The AmRide website says: “AmRide and our drivers are insured,” but there’s no further explanation of what they mean by “insured”. AmRidecharges $36.95 per hour for the driver but offers a AAA member price of $30.95 per hour.

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A Couple More Examples –AmRide

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If you have additional questions or need more information, you may email me at [email protected] or reach me by phone at 800‐972‐9312 or 508‐634‐2900.

November 12, 13, 14 & 15Marriott Hotel, Copley Place, Boston, MA

THANKS FOR ATTENDING!

If you have additional questions or need more information, you may email me at [email protected] or reach me by phone at 800‐972‐9312 or 508‐634‐2900.

APPENDIX

How will m

y policy respond to Ride‐Sharing Situations?

Vehicle Type

If You are the Driver/Owner

If You are a Passenger

UBER

/Lyft/SideC

ar: Hailed

electronically to provide rides to other

persons for a fee

MAP excludes coverage for “anyone injured while

occupying your auto while it is being used as a

public or livery conveyance.”

Specifically excludes Property Dam

age and all

Optional Insurance Parts.

Veh

icles used in

this m

anner would not be eligible

for the MAIP or CAR but would be eligible for the

Taxi/Lim

o/Car Service program

Yo

ur own policy’s Personal Injury Protection,

Uninsured M

otorist, O

ptional Bodily Injury,

Med

ical Paymen

ts, and Underinsured M

otorist

coverages follow you as a passenger in your own

vehicle or someo

ne else’s veh

icle.

Yo

ur policy would not be primary. The owner’s

policy must pay its lim

its before your policy will

respond.

FlightCar/RelayRides/G

etAround and

Other Ride‐Sharing Services: Owner

rents his/her car to others through

the

ride‐sharing service for a fee

If you are the owner, your vehicle would not qualify

for a MAP because the vehicle does not meet the

private passenger definition.

If you are the driver (ren

ter) of the vehicle:

A.

Your Personal Injury Protection, U

ninsured

Motorist, O

ptional Bodily Injury, M

edical

Paymen

ts and Underi nsured M

otorist Coverage

will follow you as the driver of someo

ne else’s

vehicle.

B.

Your Collision, Lim

ited

Collision and

Comprehen

sive Coverages on non‐owned

private passenger vehicles would follow as long

as you don’t regularly use the rented veh

icle,

C.

Your insurer would be looking for the owner’s

policy to pay its lim

its first.

If you are a passenger in a car someo

ne else is

renting through

one of these services, your

policy’s Personal Injury Protection, U

ninsured

Motorist, O


edical

Paymen

ts and Underinsured M

otorist Coverage

will follow you as a passenger in your own or

someo

ne else’s veh

icle.

Yo

ur insurer would be looking for the owner’s


its first.

Zipcar/uhaulcarshare: A

service

where Zipcar or uhaulcarshare

mem

bers rent cars owned

by Zipcar or

uhaulcarshare for personal or business

use

Members are free

to drive cars by the hour or day

with gas and insurance included

. Zipcar sedans,

hybrids, vans and m

ore are available in

neighborhoods, cities and airports around the

world.

If a m

ember has a personal auto policy, the policy

would follow the mem

ber when

ren

ting a personal

automobile with the permission of the owner as

long as the mem

ber is not regularly using the same

car. If the m

ember will use the sam

e car often

, the

“Use of Other Auto” endorsem

ent could be added.

Extension of the coverage under the personal auto

policy is not worldwide and would be limited

to the

United

States, the U.S. territories and possessions,

Puerto Rico, and Canada.

If you are a passenger in a car someo

ne else is

renting from Zipcar or a similar service, your

policy’s Personal Injury Protection, U

ninsured

Motorist, O


edical

Paymen

ts and Underinsured M

otorist Coverage

will follow you as a passenger in your own or

someo

ne else’s veh

icle.

Yo

ur insurer would be looking for the owner’s


its first.

October 2015

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Excerpts from 540 CMR 2.05 - Vehicle Registrations Requirements

Private Passenger Motor Vehicle, is any vehicle: (a) which has a vehicle weight rating or curb weight of 6,000 lbs. or less as per manufacturer'sdescription of said vehicle or is a sport utility vehicle or passenger van; or which is a pickup truck orcargo van of the ½ TON, ¾ TON or one TON class as per manufacturer's description of said vehicle;or which is a vehicle used solely for official business by any college or university police departmentwhose officers are appointed as special police officers by the colonel of the state police under M.G.L.c. 22C, § 63; and,(b) which, if a pickup truck or cargo van, is registered or leased to an individual, and is usedexclusively for personal, recreational, or commuting purposes; and,(c) which, other than a Personal Transportation Network Vehicle, is not described in elsewhere in540 CMR 2.05. Pleasure Vehicle, Passenger Vehicle, Passenger Car, Automobile and PleasurePassenger vehicle are synonymous with Private Passenger Motor Vehicle as defined in 540 CMR2.05: Private Passenger Motor Vehicle. For the avoidance of doubt, Private Passenger Motor Vehicleshall include, but not be synonymous with, Personal Transportation Network Vehicle.

Transportation Network Company is a corporation, partnership, sole proprietorship, or other entity operating in Massachusetts that, for consideration, will arrange for a passenger to be transported by a driver between points chosen by the passenger. A Transportation Network Company must hold a valid Transportation Network Company Certificate issued by the Department of Public Utilities or a notice issued by the Department of Public Utilities within the preceding six months certifying that, as of the date of the notice, the Department of Public Utilities is not issuing Transportation Network Company Certificates.

Transportation Network Company Driver or TNC Driver is an individual who, on behalf of a Transportation Network Company, provides Transportation Services to TNC Riders.

Transportation Network Company Rider or TNC Rider is any passenger who is transported by a TNC Driver for consideration and whose transportation is arranged by a TNC.

Transportation Services are the transportation of a passenger between points chosen by the passenger for consideration.

(4½)(a) A TNC Driver shall not provide Transportation Services to a Passenger unless a Transportation Network Company has pre-arranged for the TNC Driver to provide Transportation Services to the passenger. A TNC Driver shall not solicit or accept on-demand summoning of a ride, otherwise known as "street hail" or "hail pick-up".

(b) A Transportation Network Company shall make available to prospective TNC Riders the methodby which the Transportation Network Company calculates fares or the applicable rates being chargedand an option to receive an estimated fare.(c) A TNC Driver must:

1. Be at least 21 years of age;2. Possess a valid driver's license;

Possess proof of personal motor vehicle insurance as required under M.G.L. c. 90 for thePersonal Transportation Network Vehicle being used;

3. Comply with such other requirements as may be set by the Department of Public Utilities forTNC Drivers.

4. Comply with such other requirements as may be set by the Department of Public Utilities forTNC Drivers.

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(d) No individual whose operator driving record, as maintained on behalf of the Merit RatingBoard under M.G.L. c. 6C, § 57A, contains any of the following traffic violations shall operate aPersonal Transportation Network Vehicle:1. More than three traffic violations, as defined by the Division of Insurance, in the preceding

three-year period; or2. A major traffic violation, as defined by the Division of Insurance, in the preceding three-year

period

(4¾)(a)The Department of Public Utilities (DPU) shall act as the licensing authority to which a Transportation Network Company shall apply for a certificate to provide TNC Services. The

DPU may issue such a certificate if the DPU finds that public convenience and necessity require that the applicant be allowed to provide Transportation Services. (b) The DPU shall have general supervision and regulation of, and jurisdiction and control over

Transportation Network Companies as common carriers.

(c) The DPU shall ensure that, before arranging for a Transportation Network Driver to provideTransportation Services, a Transportation Network Company shall:

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Priva

te P

asse

nger

l Plat

e Def

initi

on

A pr

ivate

pass

enge

r moto

r veh

icle f

or re

gistra

tion p

urpo

ses i

s any

vehic

le:

(a)w

hich h

as a

vehic

le we

ight r

a ting

or cu

rb w

eight

of six

thou

sand

poun

ds or

less

as pe

rma

nufac

turer

's de

scrip

tion o

f said

vehic

le or

is a

spor

t utili

ty ve

hicle

or pa

ssen

ger v

an; o

rwh

ich is

a pic

kup t

ruck

or ca

rgo v

an of

the ½

TON

, ¾ T

ON or

1 TO

N cla

ss as

per

manu

factur

er's

desc

riptio

n of s

a id ve

hicle;

or w

hich i

s a ve

hicle

used

solel

y for

offic

ialbu

sines

s by a

ny co

llege

or un

iversi

ty po

lice d

epar

tmen

t who

se of

ficer

s are

appo

inted

assp

ecial

polic

e offic

ers b

y the

colon

el of

the st

ate po

lice u

nder

M.G

.L. c.

22C,

§ 63

; and

,

(b)w

hich,

if a pi

ckup

truc

k or c

argo

van,

is re

gist er

ed or

leas

ed to

an in

dividu

al, an

d is u

sed

exclu

sivel y

for p

erso

nal, r

ecre

ation

al, or

comm

uting

purp

oses

; and

,

(c)wh

ich, o

ther t

han a

Per

sona

l Tra

nspo

rtatio

n Netw

ork V

ehicl

e, is

not d

escri

bed i

nels

ewhe

re in

540 C

MR 2.

05.

The t

erms

plea

sure

vehic

le, pa

ssen

ger v

ehicl

e, pa

ssen

ger c

ar, a

utomo

bile a

nd pl

easu

re

pass

enge

r veh

icle a

re sy

nony

mous

with

Priv

ate P

asse

nger

Moto

r Veh

icle a

s defi

ned h

erein

. Fo

r the

avoid

ance

of do

ubt, t

he te

rm P

rivate

Pas

seng

er M

otor V

ehicl

e sha

ll inc

lude,

but n

ot be

syno

nymo

us w

ith, P

erso

nal T

rans

porta

tion N

etwor

k Veh

icle.

Sour

ce: 5

40 C

MR 2.

05

1/201

5

Priva

te P

asse

nger

Insu

ranc

e Def

initi

on

A pr

ivate

pass

enge

r auto

mobil

e for

insu

ranc

e pur

pose

s is:

A.A

motor

vehic

le of

the pr

ivate

pass

enge

r or s

tation

wag

on ty

pe th

at is

owne

d or

lease

d und

er co

ntrac

t for a

conti

nuou

s per

iod of

at le

ast tw

elve m

onths

by on

e or m

ore

indivi

duals

, exc

luding

(1) p

artne

rships

, (2 )

corp

orati

ons,

(3) u

ninco

rpor

ated b

usine

ssas

socia

t ions

, and

(4) o

ther le

gal b

usine

ss en

tities

with

a fed

eral

emplo

yer id

entifi

catio

nnu

mber

, and

is no

t use

d as a

pub li

c or li

very

conv

eyan

ce no

r ren

ted to

othe

rs. A

vehic

lewh

ich m

eets

the co

nditio

ns of

Ru le

31, r

egar

ding t

he tr

ansp

ortat

ion of

fello

wem

ploye

es, s

tuden

ts or

othe

rs for

cons

idera

tion,

is inc

luded

in th

is de

finitio

n, pr

ovide

dsu

ch ve

hicle

is no

t reg

ister

ed fo

r car

rying

pass

enge

rs for

hire

.

B.A

motor

vehic

le tha

t is a

pick-u

p or v

an, th

at is

owne

d or le

ased

unde

r con

tract

for a

conti

nuou

s per

io d of

at le

ast 1

2 mon

ths by

one o

r mor

e ind

ividu

als, e

xclud

ing (1

)pa

rtner

ships

, (2)

corp

orati

ons,

(3) u

ninco

rpor

ated b

usine

ss as

socia

tions

, and

(4) o

ther

legal

busin

ess e

ntitie

s with

a fed

eral

emplo

yer id

entifi

catio

n num

ber,

and

1.ha

s a gr

oss v

ehicl

e weig

ht ra

ting o

f less

than

10,00

0 pou

nds o

r has

a ve

hicle

ratin

g gro

up as

signe

d to i

t by t

he A

utomo

bile I

nsur

ers B

urea

u of M

A (A

IB),

and

2.is

not u

sed f

or th

e deli

very

or tr

ansp

ortat

ion of

good

s or m

ateria

ls un

less s

uch u

seis

incide

ntal to

the i

nsur

ed’s

busin

ess o

f insta

lling,

maint

aining

or re

pairin

gfur

nishin

gs or

equip

ment.

C.Gr

oss V

ehicl

e Weig

ht Ra

ting m

eans

the v

alue s

pecif

ied by

the m

anufa

cture

r as t

heloa

ded w

eight

of a s

ingle

vehic

le.

D.At

the o

ption

of th

e com

pany

, an e

ligibl

e veh

icle u

nder

this

rule

whos

e title

has b

een

trans

ferre

d to a

t rus

t may

be w

ritten

unde

r the

Mas

sach

usett

s Auto

mobil

e Ins

uran

cePo

licy,

subje

ct to

the fo

llowi

ng re

quire

ments

: the g

ranto

r of th

e tru

st mu

st be

anind

ividu

a l or

lawf

ully m

arrie

d ind

ividu

als re

siding

in th

e sam

e hou

seho

ld, an

d mus

t be

the on

ly ins

ured

(s) na

med i

n Item

1 of

the C

over

age S

electi

ons P

age.

All v

ehicl

e(s)

insur

ed un

der t

he po

licy m

ust b

e own

ed by

the t

rust.

A ve

hicle

owne

d by a

trus

t inwh

ich th

e gra

ntor is

a pa

rtner

ship

or co

rpor

ation

mus

t be w

ritten

unde

r a co

mmer

cial

auto

polic

y.

If a m

otor v

ehicl

e is l

ease

d as d

escri

bed i

n the

fore

going

para

grap

hs, a

nd th

e les

see i

s ob

tainin

g the

insu

ranc

e, the

polic

y mus

t be i

ssue

d to t

he le

ssee

as na

med i

nsur

ed an

d En

dorse

ment

M-00

70-S

, “Co

vera

ge F

or A

nyon

e Ren

ting A

n Auto

To Y

ou,”

must

be

attac

hed t

o the

polic

y.

Sour

ce: 2

014 M

A Pr

ivate

Pass

enge

r Auto

mobil

e Ins

uran

ce R

ules

26

Com

mer

cial P

late D

efin

ition

Comm

ercia

l Veh

icle,

in co

nnec

tion w

ith re

gistra

tion r

equir

emen

ts, is

any m

otor v

ehicl

e whic

h is

not a

priva

te pa

ssen

ger m

otor v

ehicl

e, pe

rsona

l tran

spor

tation

netw

ork v

ehicl

e, an

tique

mo

tor ca

r, mo

torcy

cle, tr

ailer

, sem

i-trail

er, a

uto ho

me, h

ouse

trail

er, ta

xicab

, amb

ulanc

e, he

arse

, live

ry ve

hicle,

bus,

scho

ol bu

s, or

scho

ol pu

pil tr

ansp

ort v

ehicl

e. Th

e foll

owing

are

exam

ples o

f com

merci

al ve

hicles

requ

iring c

omme

rcial

regis

tratio

n plat

es:

(a)A

ny ve

hicle

which

has a

vehic

le we

ight, o

r cur

b weig

ht, of

mor

e tha

n six

thous

and p

ound

s,as

per t

he m

anufa

cture

r’s de

scri p

tion o

f said

vehic

le, un

less s

uch v

ehicl

e is a

spor

t utili

tyve

hicle

or pa

ssen

ger v

an, o

r a pi

ckup

truc

k or c

argo

van m

eetin

g the

defin

ition o

f pr iv

atepa

ssen

ger v

ehicl

e;(b

)Any

vehic

le wh

ich ha

s five

or m

ore w

heels

on th

e gro

und;

(c)An

y pick

up tr

uck o

r car

go va

n, ow

ned b

y a pa

rtner

ship,

trus

t or c

orpo

ratio

n unle

ss su

chve

hicle

meets

the d

efinit

ion of

priva

te pa

ssen

ger m

otor v

ehicl

e;(d

)Any

pick

up tr

uck o

r car

go va

n, if o

n the

bed o

f the v

ehicl

e too

ls, su

pplie

s, ma

terial

s or

equip

ment

are t

rans

porte

d to o

r fro

m a j

ob si

te, or

are s

tored

for u

se at

a job

site;

prov

ided

that tr

ansp

ortat

ion to

or st

orag

e for

use a

t a pe

rsona

l pro

ject fo

r whic

h no c

ompe

n sati

on is

rece

ived s

hall n

ot be

cons

idere

d in c

onne

ction

with

the “

job si

te”;

(e)A

ny ve

hicle,

if on

the r

oof o

r side

s of th

e veh

icle,

tools,

supp

lies,

mater

ials o

r equ

ipmen

tar

e tra

nspo

rted t

o or f

rom

a job

site,

or ar

e stor

ed fo

r use

at a

job si

te; pr

ovide

d tha

ttra

nspo

rtatio

n to o

r stor

age f

or us

e at a

perso

nal p

rojec

t for w

hich n

o com

pens

ation

isre

ceive

d sha

ll not

be de

emed

in co

nnec

tion w

ith a

“job s

ite”;

(f)A

vehic

le wh

ich ha

s bus

iness

adve

rtisem

ents

or bu

sines

s mar

kings

ther

eon;

prov

ided

howe

ver t

hat m

arkin

gs lim

ited t

o the

name

, add

ress

, telep

hone

numb

er, a

nd lo

go of

any

corp

orati

on w

hose

perso

nal p

rope

rty is

exem

pt fro

m tax

ation

unde

r G.L.

Cha

pter 5

9, §5

,Cl

ause

Thir

d or T

enth

shall

not b

e con

sider

ed bu

sines

s adv

ertis

emen

ts or

busin

ess m

arkin

gsfor

purp

oses

of 54

0 CMR

2.05

;(g

)A ve

hicle

use d

for h

ire to

plow

;(h

)A ve

hicle

use d

for h

ire to

tran

spor

t or s

tore g

oods

, war

es or

mer

chan

dise,

prov

ided t

hat if

the ve

hicle

is ow

ned b

y an i

ndivi

dual,

has a

max

imum

load

carry

ing ca

pacit

y of 1

, 000 p

ound

sor

less

, and

is so

used

on on

ly a p

art-t

ime b

asis,

such

vehic

le sh

all no

t be d

eeme

d aco

mmer

cial v

ehicl

e und

er 54

0 CMR

2.05

(3)-c

omme

rcial

vehic

le (h

). “P

art-t

ime b

asis”

shall

mean

that

not m

ore t

han 4

0% of

the t

otal u

sage

of th

e veh

icle i

s de v

oted t

o the

tran

spor

ting

or st

oring

of go

ods,

ware

s or m

erch

andis

e.(i)

A ve

hicle

use d

to tr

ansp

ort o

r stor

e goo

ds, w

ares

or m

erch

andis

e inte

nded

for s

ale in

the

ordin

ary c

ourse

of th

e veh

icle o

pera

tor’s

or ow

ner’s

busin

ess,

prov

ided t

hat if

the v

ehicl

e is

owne

d by a

n ind

ividu

al, ha

s a m

axim

um lo

ad ca

rrying

capa

city o

f 1,00

0 pou

nds o

r less

, and

is so

used

on on

ly a p

art-t

ime b

asis,

such

vehic

le sh

all no

t be d

eeme

d a co

mmer

cial v

ehicl

eun

der 5

40 C

MR 2.

05(3

)-com

merci

al ve

hicle

(i). “

Part-

time b

asis”

shall

mea

n tha

t not

more

than f

orty

perce

nt of

the to

tal us

age o

f the v

ehicl

e is d

evote

d to t

he tr

ansp

ortin

g or

storin

g of g

oods

, war

es or

mer

chan

dise

Sour

ce 54

0 CMR

2.05

1/2

015

Com

mer

cial P

olicy

Elig

ibilit

y

This

secti

on ap

plies

to al

l truc

ks, in

cludin

g pick

up, p

anel

and v

an ty

pes,

truck

-trac

tors,

traile

rs an

d sem

itraile

rs ex

cept

for th

e foll

owing

:

A.Au

tos us

ed fo

r pub

lic tr

ansp

ortat

ion. R

efer t

o the

publi

c tra

nspo

rtatio

n sec

tion.

B.Au

tos le

ased

or re

nted t

o othe

rs by

leas

ing or

renta

l con

cern

s. Re

fer to

the l

easin

gor

renta

l con

cern

s rule

in th

e Sp e

cial T

ypes

Sec

tion.

C.Ind

ividu

ally o

wned

pick

ups,

pane

l truc

ks or

vans

. Refe

r to t

he P

rivate

Pas

seng

erAu

tomob

ile In

sura

nce M

anua

l.D.

Self-p

rope

lled v

ehicl

es w

ith th

e foll

owing

type

s of p

erma

nentl

y atta

ched

equip

ment.

Refer

to th

e spe

cial o

r mob

ile eq

uipme

nt ru

le.1.

Equip

ment

desig

ned p

rimar

ily fo

r:a.

Snow

remo

val

b.Ro

ad m

ainten

ance

, but

not c

onstr

uctio

n or r

esur

facing

;c.

Stre

et cle

aning

;2.

Cher

ry pic

kers

and s

imila

r dev

ices m

ounte

d on a

utomo

bile o

r tru

ck ch

assis

and u

sed t

o rais

e of lo

wer w

orke

rs.3.

Air c

ompr

esso

rs, pu

mps a

nd ge

nera

tors,

includ

ing sp

rayin

g, we

lding

, buil

ding

clean

ing, g

eoph

ysica

l exp

lorati

on, li

ghtin

g and

we ll

servi

cing e

quipm

ent.

Sour

ce: M

assa

chus

etts C

omme

rcial

Autom

obile

Insu

ranc

e Man

ual

27

© 2014 Property Casualty Insurers Association of America

8700 West Bryn Mawr, Suite 1200S, Chicago, IL 60631-3512

phone: 847-297-7800 fax: 847-297-5064

Setting a Reasonable Standard to Properly Insure Ride Sharing

Activities and Protect the Public

Backgrounder

Commercial ride-sharing services, offered by transportation network companies (TNC), are a relatively new trend in major

cities across the country. Transportation network companies, such as UberX, Lyft, and Sidecar, use smartphone

communications technology to connect individuals who want a ride with drivers for a fee. Because the drivers generally use

their personal vehicles, there are questions whether they have the proper insurance coverage as the typical standard

personal automobile insurance policy contains a “livery” exclusion which applies when the vehicle is being rented

out, or used to carry passengers for hire. Consequently, most personal automobile insurance policies do not cover

any damages or losses when a car is being used for commercial ride-sharing.

As is often the case with anything new, there is very little in statute or regulation that deals specifically with ride-sharing

programs or insurance coverage for this purpose. However approximately a dozen state insurance departments and public

service commissions have issued consumer alerts or advisories highlighting the potential insurance gaps in coverage for TNC

activity and encouraging TNC drivers to talk with their insurer to understand their exposure.

The California’s Public Utilities Commission was the first regulatory body to regulate these activities. California requires the

TNCs to carry $1 million of commercial liability coverage per incident. Many cities around the country have also grappled with

how to regulate TNC activities. State legislatures including Arizona, California, Colorado, District of Columbia, Florida,

Georgia, Illinois, Maryland, Oklahoma and Washington have considered legislation this year. While the vast majority of the

measures failed, Arizona Gov. Jan Brewer vetoed House Bill 2262 which would have forced personal auto insurers to cover

the riskier driving behavior of TNC drivers. Colorado Gov. John Hickenloopper signed legislation that sets up the framework for

TNCs to provide primary insurance coverage for all commercial activity including when the driver logs onto their app and is

available for hire through the time period when they have a passenger in the vehicle and until the driver logs off the app and is

no longer available to accept rides.

PCI Supports Innovation and Strong Consumer Protections

To support innovation and allow these new businesses to grow, it is vitally important that the vehicles used in ride-sharing

services are properly insured and the public is protected. Specifically, the drivers and their passengers need to

understand that the driver’s personal auto policy will not cover damage or losses arising when the car is used in a

ride-sharing program. We support the development of clear guidelines so everyone knows where they stand regarding

insurance coverage for ride-sharing services. PCI has been actively seeking to establish appropriate disclosures for drivers

and passengers as well as clarity regarding what insurance coverage is being provided, when it’s being provided and by

whom. PCI opposes legislative efforts to shift the commercial insurance risk and costs of ride share programs on to other

motorists.

Ride-Share with Care

28


Ride-Sharing Questions and Answers

Ride-share drivers have personal automobile insurance and the TNCs say they have $1 million

commercial liability insurance, isn’t that enough coverage?

The insurance gap isn’t about how much insurance there is, it is about when it applies. All of the coverage supplied

by the TNCs are “contingent” on the driver’s personal lines policy not providing coverage. While the TNCs may

interpret personal auto insurance policies as providing some coverage for TNC activities, insurers clearly do not

interpret their policy language that way. Personal auto insurance policies are not intended to cover the higher risks

associated with using a car for commercial purposes. Just about every standard auto insurance policy contains some

form of a livery exclusion which means carrying passengers for hire. As a result, any damages or losses sustained

when the car is being used for TNC activities will not be covered by the personal auto policy. Additionally it will

not provide coverage for the driver or passenger if they are hit by an uninsured or underinsured driver. There is also

no coverage to repair the driver’s vehicle if it is damaged while in use as a ride-sharing vehicle.

PCI is advocating for clear guidelines regarding when the TNC coverage applies. Without clarification, the TNCs

could challenge each and every coverage determination made by a personal auto insurer. That means delays in

compensating the victims and costs incurred with handling claims and litigation for the personal lines insurers, costs

that are reflected in the loss costs that affect the premiums of every driver in the state, in effect subsidizing the

economic activity of TNC drivers and companies.

What type of insurance coverage is appropriate?

The insurance marketplace is always evolving with new product offerings. PCI is advocating for legislative and

regulatory approaches to ride sharing that protect the public while not stifling insurers’ ability to innovate and develop

products to meet marketplace demands. However, TNC drivers should talk with their insurer about how they plan to

use their vehicle to ensure they are protected if an accident occurs. Driving a car as a livery presents higher risk than

normal personal use of a car. Insurance coverage needs to specifically apply to these activities.

What concerns do insurance companies have regarding ride sharing programs?

The insurance industry wants to ensure that the personal and financial safety of consumers, passengers and drivers

are protected. Currently there are not clear guidelines to ensure that vehicles used in these programs are properly

insured. It also is not always clear when the TNC’s coverage is activated, which could leave drivers uninsured while

they are on the road. The potential for coverage gaps put everyone at risk.

What changes do insurers want to see?

Insurers want all participants to understand what is covered and when. TNC drivers should have coverage that

specifically addresses these activities Ride sharing program participants (car owners, drivers and passengers) should

have disclosures on coverage issues as part of contracts/usage agreements. Drivers and passengers should know

where they stand regarding insurance coverage while they’re involved with a ride sharing program. Additionally,

vehicle owners have a responsibility to purchase insurance appropriate to the way they use their vehicles.

29


Contingent Liability Creates Coverage Uncertainty

Potential for Disputes

App On Waiting for Match

Match Notification

Picked Up Passenger Dropped Off Passenger App On

TNC: Contingent Liability Contingent Commercial Contingent Liability

Personal: Coverage Excluded

TNC/Driver: 24/7 Coverage for both Commercial and Personal Purposes Provided by TNC or Driver

Addressing the Grey Area:

With TNCs’ coverage contingent on the drivers’ personal lines insurer denying a claim, there is uncertainty that creates opportunities for disputes. Each claim has to be reviewed and if the personal lines insurer denies coverage, the TNC can dispute the insurer’s coverage determination. This process creates delays in compensating victims, higher claims handling costs and legal fees.

TNC insurance coverage should be primary and apply exclusively at all times while a driver is signed up for a ride sharing program. This approach establishes a bright line regarding coverage and reduces the opportunity for disputes that is inherent in having TNC coverage contingent on the driver’s personal lines insurer denying coverage.

Contingent Insurance Coverage Flow Chart

The insurance gap isn’t about

how much insurance there is…

It is about when it applies.

ACCIDENT OCCURS

PERSONAL LINES INSURER DENIES CLAIM

TNC CHALLEGES COVERAGE

DETERMINATION

INSURER AND TNC BATTLE OVER

COVERAGE

DELAY IN COMPENSATING VICTIM, ADDED

CLAIMS HANDLING COSTS AND

LEGAL FEES

30


TNC Ridesharing Insurance Coverage Periods TNC drivers are providing services during all three periods, therefore the TNC coverage should be primary and apply exclusively during all

three periods to close the insurance gap

PERIOD ONE:

App On - Waiting for a Match

PERIOD TWO:

Match Made - Passenger not yet in car

PERIOD THREE:

When passenger enters; until they exit

PCI is composed of more than 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, 39 percent of the nation's property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market,

32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.

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INSURANCE FOR UBERX WITH RIDESHARING

FEBRUARY 10, 2014

POSTED BY NAIRI

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Page 1 of 4Insurance for uberX with ridesharing | Uber Blog

2/23/2015http://blog.uber.com/ridesharinginsurance

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(https://blog.uber.com/wp-content/uploads/2014/03/Screen-Shot-2015-01-20-

at-8.06.44-AM.png)

Since February 2013, Uber has offered ridesharing as the lowest-cost, most reliable on-

demand transportation alternative. Bringing uberX with ridesharing to market in the

U.S. has also required robust insurance coverage. Uber’s best-in-class insurance

coverage for ridesharing in the U.S. includes as of July 14, 2014:

• $1 million of liability coverage per incident. Uber holds a commercial insurance

policy with $1 million of coverage per incident

(http://blog.uber.com/certificatesofinsurance). Drivers’ liability to third parties is

covered from the moment a driver accepts a trip to its conclusion. This policy is

expressly primary to any personal auto coverage (However it will not take

precedence over any commercial auto insurance for the vehicle). We have provided

a $1 million liability policy since commencing ridesharing in early 2013.

• $1 million of uninsured/underinsured motorist bodily injury coverage per incident.

In December 2013, we also added uninsured/underinsured motorist coverage. In

the event that another motorist causes an accident with an uberX vehicle and



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doesn’t carry adequate insurance, this policy covers bodily injury to all occupants

of the rideshare vehicle. This is important to ensure protection in a hit and run.

• $50,000 of contingent comprehensive and collision insurance.* If a ridesharing

driver holds personal comprehensive and collision insurance this policy covers

physical damage to that vehicle that occurs during a trip, for any reason, up to

$50,000 and with a $1,000 deductible.

• No fault coverage (e.g., Personal Injury Protection) is provided in certain states at

similar levels as limos or taxis in those cities.

• $50,000/$100,000/$25,000 of contingent coverage between trips.** During the

time that a ridesharing partner is available but between trips, most personal auto

insurance will provide coverage. However the driver is also backed by an

additional policy that covers driver liability for bodily injury up to

$50,000/individual/accident with a total of $100,000/accident and up to $25,000

for property damage. This policy is contingent to a driver’s personal insurance

policy, meaning it will only pay if the personal auto insurance completely declines

or pays zero. This policy meets or exceeds the requirements for 3rd party liability

insurance in every state in the U.S.

As always, all UberBLACK, UberSUV, or uberTAXI rides are provided by commercially

licensed and insured partners and drivers. Those transportation providers are covered

by commercial insurance policies, in accordance with local and state requirements. We

are proud of these policies. We continue to look for ways to do more to ensure safety

on the road for our transportation providers and their passengers. As we continue

collaborating with the insurance industry and other stakeholders, there will be more to

come.

* This replaces our prior collision-only reimbursement program as of March 14, 2014.

** Effective as of March 14, 2014 in all U.S. states

Last updated July 22, 2014

This post provides an informational summary of insurance policies for quick reference

and does not affirmatively or negatively amend, extend, or alter the coverage afforded

by those policies.



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Ride-Sharing: What Every Agent Should Know About ItUBER/Lyft/SideCar: • Transportation Network Company Driver or TNC Driver is an individual who, on behalf of a Transportation Network

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