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Insurance Coverage for Uber and Lyft Vehicles in PA

December 4, 2017
Leah Zenou
Posted in: Automobile & Trucking

As the use of ‚Äútransportation network companies‚ÄĚ such as Uber and Lyft continue to rise in Pennsylvania, new statutory regulations have been enacted to require insurance coverage for both the transportation network companies and their drivers. See 66 Pa.C.S.A. Section 2603.1 and at 53 Pa.C.S.A. Section 57A07.

Importantly, under the new regulations:

  • the driver or the transportation network company must maintain primary automobile insurance;
  • an insurance carrier providing personal automobile insurance coverage to a person who chooses to use their personal vehicle to drive for Uber or Lyft may deny coverage under that personal policy; and
  • Uber and Lyft are required to ensure their drivers have coverage before allowing a driver to drive for the company.

While the transportation network companies and their drivers must maintain insurance coverage, there is a distinction in the coverage required when the drivers are engaged in a ride through the transportation network company application and when the drivers are not engaged in a ride:

  • When the driver is logged into the transportation network company application but not actually engaged in a ride, the driver must be covered by a policy providing bodily injury liability coverage of $50,000 per person and $100,000 per accident, along with $25,000 in property damage coverage and $5,000 in first party medical benefits coverage for the driver and $25,000 in first party medical benefits for any pedestrians injured; and
  • when the driver is engaged in a ride through the transportation network company application, the driver must be covered by a policy providing $500,000 in liability coverage for bodily injury and property damage claims, and $5,000 in first party medical benefits for the driver and $25,000 in first party medical benefits for any passenger or pedestrian injured.

With future insurance coverage decisions, we will likely see case law interpreting the scope and applicability of these new regulations requiring insurance coverage for both the transportation network companies and their drivers.