Consumer Alert: TNC Coverage

Commissioner Miller is reminding Transportation Network Company (TNC) drivers to be aware of what kind of coverage they have while driving for companies like Uber or Lyft.

Governor Wolf signed Senate Bill 984 which formally legalized ride-sharing across the Commonwealth earlier this month. Certain provisions of this law require TNCs to tell drivers what kind of coverage they offer for vehicles with lease or lien obligations.

Most private auto insurance policies will not cover your vehicle while you are transporting a paying passenger. Some TNCs may offer collision or comprehensive coverage to drivers who are involved in accidents while operating their vehicle during certain stages of transportation.

Be aware that there may be gaps in coverage between your private auto insurance policy and what coverage the TNC offers, and purchasing additional commercial coverage may be necessary. The comprehensive and collision coverage limits and deductibles for a commercial policy may differ significantly from a private policy, so be sure to thoroughly review this before purchasing.

For drivers that have a car loan or drive a leased auto, it may be necessary to purchase commercial comprehensive and collision coverage if such coverage is not provided by the TNC.  Failure to maintain comprehensive and collision during all periods of TNC activity may result in the lender or lessor obtaining “force-placed insurance” on the vehicle at the driver’s expense, and typically costs more than insurance purchased directly by the driver.

Commissioner Miller is urging consumers who are thinking of driving for TNCs to review their auto insurance policy, have verification of coverage from the TNC, and purchase any additional coverage before starting to drive.

For more information or to file a complaint, contact the Insurance Department’s Consumer Services Bureau online or by calling 1-877-881-6388.