The bill amends the Insurance Code to establish new automobile liability insurance requirements specifically for transportation network company (TNC) drivers. It clarifies that insurance must cover drivers using personal vehicles to transport TNC riders for compensation, particularly while logged onto the TNC's digital network and during prearranged rides. Notably, the bill introduces language specifying that insurance must cover drivers both when they are engaged in a prearranged ride with a TNC rider in the vehicle and when they are logged on but not engaged in a ride, or engaged in a ride without a TNC rider present.

Additionally, the bill sets forth specific minimum liability coverage amounts for TNC drivers, including $50,000 for bodily injury per person, $100,000 per incident, and $25,000 for property damage when not engaged in a ride. When engaged in a ride with a TNC rider, the required coverage increases to a total aggregate limit of $1 million for death, bodily injury, and property damage. The changes will apply to insurance policies delivered, issued for delivery, or renewed on or after January 1, 2026, with the act taking effect on September 1, 2025.

Statutes affected:
Introduced: Insurance Code 1954.051, Insurance Code 1954.052, Insurance Code 1954.053 (Insurance Code 1954)