Florida Insurance Commissioner discusses TNCs

On December 4, 2015, Florida Insurance Commissioner Kevin McCarty discussed insurance issues related to Transportation Network Companies (TNCs) in an interview with the Florida Taxicab Association (FTA). McCarty stated during the interview that gaps in insurance coverage for companies such as Uber and Lyft exist and that consumers should be aware of the gaps. He also stated that the Legislature should try to regulate TNCs as well as educate the public on the issues dealing with these insurance gaps.

FTA believes that all drivers should have coverage at all times regardless of how the vehicle is being used. Roger Chapin, a FTA Board Member and Mears Transportation Executive, stated that “We are not against TNCs, we just believe that instead of policy makers asking what can they do to accommodate Uber’s business plan, they should simply be asking what they should be doing to protect the traveling public and their constituents.”

In Florida, taxis are required to have “commercial” insurance, which provides coverage regardless whether the taxi is on duty, off duty, or if the driver is using the taxi for personal use. Uber on the other hand has many gaps in insurance coverage since it relies on the individual’s personal car insurance.

According to Chapin, “The Uber model of ‘sharing’ a driver’s personal insurance to accommodate their commercial business plan means essentially every UberX driver in Florida is committing insurance fraud. “

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