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Insurance Requirements for Uber, Lyft, and Other App-Based Transportation Services

The new regulations for Uber, Lyft and other transportation network companies (“app-based transportation service”) are now in effect in the Commonwealth of Pennsylvania; Governor Wolf signed the bill into law on Friday, November 4, 2016. That means new insurance requirements for vehicles operating through an app-based transportation service.

App-based transportation services are now subject two different requirements for insurance (minimum levels of coverage) based on the status of the driver: one for if they are logged into the network and able to receive ride requests; and a second for when they are actually engaged in a ride.

When drivers are merely logged into the transportation network, the new law requires primary automobile liability insurance in the amount of at least $50,000 for death and bodily injury per person, $100,000 for death and bodily injury per accident, $25,000 for property damage, and first-party medical benefits for pedestrians as already required by Pennsylvania law. Once a driver is engaged in a ride, coverage required is increased – the law requires at least $500,000 for death, bodily injury and property damage, as well as the same medical benefits for pedestrians. The new coverage requirements can be satisfied by the auto insurance maintained by the driver; the insurance maintained by the company; or some combination of the two insurance policies.

To put the importance of this legislation into perspective, the insurance regulations on taxis in the Commonwealth of Pennsylvania require just $35,000 for death, bodily injury, or property damage.

If you are involved in an auto accident with an app-based transportation service vehicle or are inside such a vehicle at the time of an accident, be aware that the law requires the driver for the app-based transportation service to provide proof of the insurance policy described above to you and all other interested parties (including the investigating police officer). The driver must also disclose whether or not they were logged into the digital network at the time of the accident.

If you are involved in an accident with an app-based transportation service, contact the attorneys at Leonard Sciolla. Our lawyers are highly experienced in working with insurance companies to get the compensation our clients deserve. Call (215) 567-1530 for our Philadelphia office and ask for Christopher Fleming.


Published November 10, 2016

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