H.B. No. 3520 amends the Insurance Code to update the automobile liability insurance requirements for transportation network company (TNC) drivers in Texas. The bill specifies that insurance policies must cover TNC drivers while they are logged onto the company's digital network and during prearranged rides with riders in the vehicle. Notably, it introduces new language to clarify that coverage is required both when a driver is available for requests without a rider and when they are engaged in a ride with a rider present.

The bill establishes minimum liability coverage amounts for TNC drivers, including $50,000 for bodily injury or death per person, $100,000 per incident, and $25,000 for property damage when not engaged in a ride. When a driver is engaged in a prearranged ride with a 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 issued 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)
House Committee Report: Insurance Code 1954.051, Insurance Code 1954.052, Insurance Code 1954.053 (Insurance Code 1954)
Engrossed: Insurance Code 1954.051, Insurance Code 1954.052, Insurance Code 1954.053 (Insurance Code 1954)
Senate Committee Report: Insurance Code 1954.051, Insurance Code 1954.052, Insurance Code 1954.053 (Insurance Code 1954)