Insurance Requirements for Transportation Network Companies and their Drivers in Georgia
If you’re a driver or customer of a transportation network company (TNC) in Georgia, it’s important to know the insurance requirements for TNCs and their drivers. These requirements are designed to protect all parties involved in TNC services, including drivers, passengers, and other motorists on the road.
Definition of Terms
Before delving into the insurance requirements for TNCs, it’s important to understand the terms involved. In Georgia, a personal vehicle is defined as a vehicle that’s not used for commercial purposes. A transportation network company, on the other hand, is an organization that connects passengers with drivers using a mobile application. TNC customers are individuals who request TNC services, while TNC drivers are operators of personal vehicles who provide TNC services.
Insurance Requirements for TNCs
According to Georgia law, OCGA 33-1-24 outlines specific insurance coverage requirements for drivers of transportation network companies (TNCs), such as Uber or Lyft. These requirements vary depending on the two different periods of time that a driver may encounter while using a TNC app.
When a driver is logged onto the network and available to accept a ride, a minimum of $100,000.00 for bodily injuries or death of all persons in any one accident is required, with a maximum of $50,000.00 for bodily injuries or death of one person and $50,000.00 for property damage of others, excluding cargo, in any one accident.
Once a driver has accepted a ride and is transporting a passenger, the required insurance coverage greatly increases. A minimum of $1 million for death, personal injury, and property damage per occurrence is required, as well as uninsured and underinsured motorist coverage as required by Code Section 33-7-11. Minimum limits of $300,000.00 for bodily injuries to or death of all persons in any one accident with a maximum of $100,000.00 for bodily injuries or death of one person and $25,000.00 for property damage of others, excluding cargo, in any one accident are also required.
It’s important to remember that these insurance requirements were put in place to protect drivers, passengers, and other motorists on the road in the event of an accident involving a TNC. If you have been injured or wronged in an accident involving a TNC, it’s important to seek legal assistance from a trusted law firm like Cohen & Sinowski, P.C. Our empathetic and professional team can help you understand your rights and pursue the compensation that you deserve. Contact us today for a consultation.
Providing Insurance Coverage
TNCs are responsible for providing evidence of insurance coverage to the Commissioner of Insurance in Georgia. This means that the insurance policy must be submitted to the Commissioner and placed with a licensed insurer. TNCs are also responsible for informing their drivers of the insurance policy and requirements, as well as for making sure that their drivers comply with all applicable insurance laws and regulations.
Exclusions and Additional Coverage
Most personal vehicle insurance policies do not cover accidents that occur while providing TNC services. However, Georgia law requires that TNCs secure insurance coverage that covers such accidents. While personal vehicle insurers may offer separate coverage for TNC services, TNCs are ultimately responsible for meeting the minimum insurance requirements outlined in Georgia law. TNCs must also notify their lienholders if they are providing TNC services using a personal vehicle.
Disclosures and Terms of Service
TNCs are required to disclose certain information to their drivers in order to make sure that they understand the insurance requirements and their responsibilities. The terms of service for TNC drivers should also include clauses that address insurance coverage. In the event of an accident, TNCs must promptly provide all accident-related information to their insurers.
Primary Insurance Coverage of TNCs
If an accident occurs while providing TNC services, the TNC’s insurer is the primary insurer for all covered claims. This means that the TNC’s insurer is responsible for defending and indemnifying the TNC and its drivers, as well as paying any judgment or settlement resulting from a covered claim. However, personal vehicle insurers also have notification and contribution rights and may have a duty to defend and indemnify their insured drivers under certain circumstances.
Recent Amendments and Effective Dates
Georgia insurance laws related to TNCs have been recently amended and went into effect on January 1, 2020. These amendments clarify and modify certain aspects of the insurance requirements for TNCs and their drivers.
Complying with the insurance requirements for TNCs and their drivers in Georgia is essential for protecting all parties involved in TNC services. If you’ve been injured or wronged in an accident involving a TNC, it’s important to seek legal assistance from a trusted law firm like Cohen & Sinowski, P.C. Our empathetic and professional team can help you understand your rights and pursue the compensation that you deserve. Contact us today for a consultation.