Transportation Network Companies and Auto Insurance:

Frequently Asked Questions

 What are Transportation Network Companies (TNCs)?

Transportation network companies (TNCs), such as Uber, Lyft and GetMe, provide a

transportation service by contracting with drivers (TNC driver-partners) who use their

 Why are insurance companies and State insurance regulators interested in

TNC activities?

Because TNC activities are so new, many insurance companies have not yet had time

to consider TNC activity when designing or pricing personal auto insurance policies. As

a result, the TNC activity introduces additional insurance risk that might not be covered

under the personal auto policy. This could leave policy holders lacking certain optional

coverages (such as medical payments, uninsured/underinsured motorists,

comprehensive, or collision) in the event of an accident during certain phases of TNC

Phase 1: TNC driver is logged into the app and is available to accept passenger(s).

Phase 2: TNC driver has accepted a request from a passenger (a “match”) and is in

route to pick up the passenger.

Phase 3: Starts when the passenger enters the vehicle and ends when the

passenger fully exits the vehicle.

You are not considered to be driving for the TNC when you are not logged into the app.

not you or your passenger). Pursuant to NRS 485.185, the required amount of liability

coverage must not be less than $15,000/$30,000/$10,000 -- bodily injury per person/

bodily injury per accident/property damage.

During Phases 1-3 of TNC activity, liability coverage is required by Nevada law in the

following amounts:

o Phase 1 (TNC driver is logged into the TNC app and available to accept

o Phases 2 and 3 (beginning with a “match” to a passenger, and ending when the

passenger fully exits the vehicle): The liability coverage must not be less than

$1.5 million per accident. Pursuant to Section 11 of AB 176 (2015), this coverage

must continuously be provided either by the TNC or the driver’s insurance

policies. Some TNCs might offer this liability coverage through their commercial

auto insurance policies.

o During Phase 3, the TNC provides backup coverage pursuant to Section 11(3) of

AB 176 (2015). Currently, all TNCs permitted by the NTA provide primary

your insurance agent or insurance company to confirm what coverage you would have if

you were to drive for a TNC. Many personal auto policies exclude coverage for any TNC

activity. Only a few auto insurance companies currently offer a provision or special

endorsement that provides any insurance coverage during Phases 1, 2 or 3 of TNC

activity.

 When does coverage from my personal auto insurance policy stop and

coverage from a TNC’s commercial auto policy begin?

In general, a personal auto insurance policy stops providing coverage from the moment

 Doesn’t the TNC’s commercial auto insurance policy cover what my

personal auto insurance does not cover during TNC activity?

Not necessarily. During TNC activity Nevada law requires that either the TNC or the

driver must continuously have at least minimum liability insurance coverage during

Phases 1-3 of TNC activity, and the TNC must at least maintain backup coverage for

Phase 3. Check with the TNC and your insurance agent to ensure you have the

required coverage.

It is important to know that during Phases 1-3, although the TNC might provide for

experience a “gap” in certain optional coverages in the event of an accident. Such

“gaps” could result in you being responsible to pay certain expenses out-of-pocket.

 Can I get an auto insurance policy that will provide the same coverage

when using my vehicle for personal activities and TNC activity?

TNCs are relatively new, and insurance companies are working on providing policies or

endorsements for the additional risks associated with participating in TNC activity.

Contact your insurance agent or your insurance company to find out what options are

available.

The additional coverage will likely cause your personal auto insurance to cost more.

Contact your insurance agent or insurance company to find out more details.

 Would a passenger’s personal auto insurance policy provide coverage for

his or her injury resulting from an accident during TNC activity?

Not necessarily. A personal auto insurance policy usually only provides insurance

coverage for accidents resulting from the use of a vehicle owned by the insured, or a

vehicle that the insured is driving. Passengers should always check their auto insurance

policy or contact their agent or insurance company to determine if their auto insurance

 Do I have to tell my auto insurance company that I am driving for a TNC,

and could my personal auto insurance company deny claims if it later finds

out that I am driving for a TNC?

It is a good idea to let your personal auto insurance company know that you are using

or want to use your car for TNC activity. Currently, most auto insurance policies contain

a specific exclusion that prohibits you from participating in TNC activity at any time. If

you drive for a TNC without the knowledge of your insurance company, it might consider

the TNC activity to be a violation of your policy conditions. This means that if you are

later involved in an accident, even while using your car entirely for personal purposes

you did not disclose your TNC driving activity to your auto insurance company prior to

the accident, your insurance company might deny any liability claim amounts that are in

excess of those minimum liability limits, even if you had purchased higher liability limits.

you for any monies it pays towards a claim under the above circumstances.

The insurance company might also deny claims for optional coverages that you may

have purchased on your personal auto insurance policy to protect you, your

passengers, or your car. These would include such coverages as Collision,

offer a special endorsement to extend certain coverages during certain TNC activity.

 Can my auto insurance policy be canceled by my insurance company if I

drive for a TNC?

Again, currently most personal auto insurance policies contain a specific exclusion that

prohibits you from participating in TNC activity at any time. If you drive for a TNC

company without the knowledge of your insurance company, it might consider the TNC

activity to be a violation of your policy conditions for which it could cancel your policy.

NRS 687.320(1)(d), allows your insurance company to cancel a policy upon discovery

 What should I do if my auto insurance company cancels my insurance

policy for participating in TNC activity?

Nevada’s auto insurance market is one of the most competitive in the country with over

130 insurance companies writing personal auto insurance. You should shop around to

see which insurance company might accept you as an insurance risk in light of your

TNC activity.

2. That your state-required personal auto liability insurance might not offer the

required coverage for the use of your personal car in TNC activities (“Phases

1-3”);

3. If comprehensive or collision coverage was purchased by you under your

personal insurance policy, that such coverage might not apply to any damage

5. That the use of your car for TNC activities might violate the contract between

you and the lienholder, if any.

Read the disclosure notice carefully. Take the time to understand and determine what

TNC provided insurance coverage you would have and whether there would be any

“gaps” with your personal auto insurance.

 How do State regulators ensure that the TNC auto insurance policy is

compliant with Nevada law?

download from our web-site or pick up a copy from our offices in Carson City or Las

Vegas. This informational guide contains explanations of different type of coverages

available under a personal auto insurance policy, Nevada law and what factors

insurance companies generally use to develop the auto insurance premiums.