TDCI Reminds Tennesseans of New Ridesharing Laws

Wednesday, February 24, 2016 | 08:39am

NASHVILLE – The Tennessee Department of Commerce & Insurance (TDCI) reminds Tennessee consumers to be aware of new state regulations governing ridesharing networks and their drivers.

Tennessee’s ridesharing legislation was enacted to eliminate both consumer and regulator questions regarding these increasingly popular services while providing appropriate guidance for the ridesharing companies, their drivers, and riders. The regulations took effect Jan. 1, 2016.

“The Department protects Tennessee consumers every day and adapts to new changes created by technology,” Tennessee Department of Commerce & Insurance Assistant Commissioner Michael Humphreys said. “This legislation provides certain clarity where there had been confusion regarding when an insurance policy may cover a trip through a ridesharing service. Drivers may still wish to confirm coverage with their personal auto and/or ridesharing companies to ensure they have adequate protection.”

All ridesharing companies and/or their drivers operating in Tennessee must follow these regulations:

  • Drivers must maintain primary auto coverage that recognizes the driver as a Transportation Network Company (TNC) driver.
  • When logged on to the app but not engaged in a prearranged ride (has not been connected with a rider), the driver must have primary auto liability insurance of at least 50/100/25 (dollar limits in thousands for bodily injury per individual/bodily injury per accident/ property).
  • When the driver is engaged in a prearranged ride, driver must have primary auto liability insurance at a minimum of $1,000,000 for death, bodily injury, and property.
  • If an accident occurs and the driver does not have coverage, the company is required to provide coverage and has a duty to defend the claim.
  • Permits an insurer offering personal auto to expressly exclude coverage during times an insured is acting as a TNC driver under the terms of the policy, and the exclusion alleviates the insurance company from a duty to defend or pay any claim.
  • Drivers must carry proof of coverage at all times and are prohibited from transacting their business in cash.
  • The TNC must provide a picture of the driver and license plate number.
  • Maintain two years of trip records. 

For more information, contact our Consumer Insurance Services Division at (615) 532-5329.