TNC/Ridesharing has become a popular trend over the past year. However, many consumers have unanswered questions when it comes to ridesharing and insurance.
What is a “TNC”?
TNC stands for “Transportation Network Company”. TNC’s are the companies that offer a ridesharing service. Companies such as Uber and Lyft are examples of popular “TNCs”.
What is “Ridesharing”?
Ridesharing is the use of a personal, non-commercial, privately owned vehicle to provide pre-arranged transportation to others. Passengers request a ride though the Transportation Networks app.
What is a “TNC Driver”?
A TNC Driver is someone who uses their personal, non-commercial vehicle to provide rides for others.
Who must provide insurance for the TNC Driver?
New York State law requires that a TNC provide primary insurance coverage for their drivers through a group policy. TNC drivers are able to obtain their own insurance but must meet the same insurance requirements as the TNC is required to provide.
What are the required minimum limits of insurance?
Bodily Injury Liability: $75,000/$150,000
Property Damage: $25,000
Uninsured Motorist: $25,000/$50,000
Personal Injury Protection $50,000
Will the TNC Driver’s personal automobile policy provide physical damage coverage?
No! The TNC driver’s personal automobile policy will only provide physical damage coverage if an insurer provides the coverage for a TNC drivers vehicle through an endorsement.
Is there an age and licensing requirements to become a TNC driver?
Yes, New York State law requires that TNC drivers must be at least 19 years old and hold a valid and current New York State driver’s license issued by the New York State DMV.
Are there any requirements to become a TNC driver?
Yes, the New York State DMV requires that the TNC conduct a criminal history background check along with a review of the applicant’s driving record. TNC’s must also verify that the applicants vehicles are properly registered and inspected.
If you are a TNC driver or are thinking of becoming one and have questions regarding your insurance, please give us a call at (516) 249-5200 and one of our automobile specialist will be happy to assist you.
Written by: Amanda Haase