Considerations for Uber, Lyft and Other TNCs There is a smart phone application for almost everything now: adjusting your thermostat, recording your daily run, keeping track of your personal finances. Transportation apps such as Uber and Lyft that allow you to request a ride using your smartphone are becoming increasingly popular—and also controversial.
Transportation Network Companies (TNCs)
Considered a type of ridesharing, a company that uses an online-based platform to connect passengers and drivers for transportation services (using the driver’s personal vehicle) is now commonly called a transportation network company, or TNC. The California Public Utilities Commission (CPUC) defined a TNC in 2013 in order to describe what these services are and to help write rules and regulations for them. Other cities and states are now following the CPUC’s precedent.
Because TNCs are a new type of company and service, it has been difficult to determine what regulations the company and drivers need to follow as well as what insurance coverages apply to them. When TNCs first gained popularity, there were many questions about proper insurance coverage, gaps in coverage and who is liable in an accident.
The CPUC determined that, in the state of California, TNCs provide for-hire transportation for passengers, which would classify them as a livery service. Livery services are not covered under most standard auto policies, and, if you use your car for business purposes, you need commercial car insurance coverage. At first, many drivers did not know this, creating confusion when they caused or were involved in accidents.
Personal Auto vs. Contingent Liability Coverage
Since TNC drivers use their vehicles for both purposes—business and personal—it was a challenge to make the distinction between when a driver was simply driving his or her own car and when he or she was driving as a representative of the TNC. Two of the most well-known TNCs, Uber and Lyft, have clarified when drivers are covered by different types of insurance.
When a driver is driving with the TNC app off, the driver is not working and not accepting rides, so the driver’s personal auto insurance is the primary coverage. When the driver turns on the app, is in driver mode but has not yet accepted a ride, TNCs generally offer contingent liability coverage if the driver’s personal auto insurance does not offer protection. When a passenger is picked up, the TNC’s policy is the primary policy until the end of the ride.
Each insurance company has a different approach to claims from TNC drivers, as this is a relatively new type of risk. Consult with Hanson Insurance Group to further discuss in which situations coverage is in effect to be sure you are always protected. The TNC insurance landscape is continuously evolving to meet the safety needs of drivers and passengers. Hanson Insurance Group is your resource for information on new and changing regulations and how they could affect you.
A teacher of first-graders gave her students the first half of a well-known proverb, then asked them to compete the saying. Their answers and the wisdom of youth below:
Don't change horses…until they stop running
Strike while the … bug is close.
Never underestimate the power of … termites.
You can lead a horse to water but … How?
Don’t bite the hand that … looks dirty.
No news is … impossible.
A miss is as good as a … Mr.
You can’t teach an old dog new … Math.
If you lie down with dogs, you’ll … stink in the morning.
Love all, trust … Me.
The pen is mightier than the … pigs.
An idle mind is … the best way to relax.
Where there’s smoke there’s … pollution.
Happy the bride who … gets all the presents.
A penny saved is … not much.
Two’s company, three’s … the Musketeers.
Don’t put off until tomorrow what … you put on to go to bed.
Laugh and the whole world laughs with you, cry and … you have to blow your nose.
There are none so blind as … Stevie Wonder.
Children should be seen and not … spanked or grounded.
If at first you don’t succeed … get new batteries.
You get out of something only what you … See in the picture on the box.
When the blind lead the blind … get out of the way.
A bird in the hand … is going to poop on you.
Better late than … Pregnant.
Hanson Insurance Group Named a 'Circle of Excellence Agency' by Western National Insurance Group
The Western National Circle of Excellence recognition is announced annually to spotlight an elite group of partners who have excelled based on performance and growth over the past six years (2011-2016). An agency must also demonstrate that they meet high standards of professional excellence and integrity in order to be considered for this recognition. Hanson Insurance Group's place among this list is a testament to the overall quality of the agency's insurance professionals and their commitment to the needs of their insurance clients.
This recognition places Hanson Insurance Group in the 95th percentile of all Western National partners for overall performance, growth, and partnership over the past six years.
Excerpted from Western National release on February 28, 2017.
In This Issue
Coverage insights: Considerations for Uber, Lyft and other TNCs
Trent Hanson was very helpful in getting us last minute liability insurance for our company. Returned our calls, kept in touch and was just plain helpful.... Thank you Trent!!
I have worked with Trent a few times on work policies. He is great to work with. I really appreciate when someone tells me that either they can help me with something better, or if what I have is better and that I am being taken care of. I highly recommend working with the Hanson Insurance Group if you have any commercial insurance coverage needs.
Brad originally quoted our business liability and vehicle policy. The quote was very complete and competitive so we switched from our carrier of many years. It has been a great business move. It is imperative that I receive auto certificates and liability certificates timely. Maureen is wonderful to work with and is extremely efficient, her turn around time on certificates matches the needs of our company. We now have all of our personal insurance with Hanson Ins. The rates were lower and the service is outstanding. I have recommended them to several business associates and friends.
I have my auto insurance through Hanson Insurance Group. Great staff and easy to work with. Prices and coverage are good...and that is saying something because I have a teenage daughter!
Hanson Insurance Group has been handling our company's insurance needs for the past several years. They are an outstanding company, always providing competitive rates and excellent coverage.
The staff is exceptional and the service is personalized to my needs. I would highly recommend.
We have been with Hanson Insurance Group since the company opened. Brad is a very personable individual and he is someone that we trust 100%. We have all of our insurance policies (business, personal, life insurance) through Hanson Insurance and have always been happy.
Successfully navigating the world of insurance is tricky. Especially for a small business and especially for the first time. Throughout the process of getting insurance for my business Erin and the rest of the folks at Hanson’s were great to work with: informative, helpful, prompt, and competitively priced. If you are in the market for commercial insurance, I recommend adding them to your list and giving them a call.