as a taxi service. The difference is that the drivers are
everyday individuals who utilize their personal vehicles to
transport passengers. The drivers and the passengers are
connected with each other through a mobile app. Drivers
and passengers do not exchange payment. Payment is
handled through the mobile app where the passenger has
stored his or her credit card information. Uber is the most
commonly known ride-sharing company. They operate
in cities across the country, including Topeka, Wichita,
Lawrence, Manhattan and the Kansas City market.
are your insureds ride-sharing?
Ride-sharing is growing in popularity, especially in metro
areas and college towns. Because drivers have the flexibility
to choose when they are available to offer rides, college
students and retirees are often among those who sign up to
be ride-sharing drivers as a way to earn a few extra dollars.
what are the new requirements?
As of January 1, 2016, anyone driving for a ride-sharing
company or anyone who is the owner of a vehicle being
used for ride-sharing is required to maintain primary auto
insurance that covers the driver while he or she is logged
on to the ride-sharing company’s digital network, engaged
in a prearranged ride, or transporting a passenger for
compensation. The ride-sharing process has been broken
down into two periods. Drivers or vehicle owners are
required to have coverage in place for both Periods 1 and
2 either through their own auto insurance, the ride-sharing
company’s insurance or a combination of the two.
coverage during period 1
Period 1 is defined as the time when a driver is logged
on to the digital network and available to receive
transportation requests but not engaged in a prearranged
ride. During this time, the following auto insurance
requirements apply:
• Primary auto insurance of at least $50,000 for death and bodily
injury per person and $100,000 per incident, and $25,000 for
property damage; and
• Primary auto liability insurance that meets the minimum
coverage requirements for uninsured and underinsured motorist
coverage and motor vehicle liability coverage.
coverage during period 2
Period 2 is defined as the time when a driver is engaged
in a prearranged ride. During this time, the following
automobile insurance requirements apply:
• Primary auto insurance that provides at least $1,000,000 for
death, bodily injury, and property damage; and
• Primary auto liability insurance that meets the minimum
coverage requirements for uninsured and underinsured motorist
coverage and motor vehicle liability coverage.
insufficient or lapsed coverage
According to the legislation, if the insurance maintained by
the driver or vehicle owner, as described in Periods 1 and
2, has lapsed or does not provide the required coverage,
the insurance maintained by the ride-sharing company
provides the coverage required beginning with the first
dollar of a claim, and the company has the duty to defend
the claim. Under the new law, coverage by an automobile
insurance policy maintained by the ride-sharing company
does not depend on a personal auto insurer first denying a
claim, nor is a personal auto insurance policy required to
first deny a claim.
insurance disclosure to drivers
Under the new law, ride-sharing companies are required
to disclose the insurance implications to drivers. The
companies must provide the following information in
writing to the driver before the driver is allowed to accept a
request for a prearranged ride on the digital network:
• Cov