WASHINGTON, D.C., March 13, 2014 - Stephen Schneider, Midwest region vice president for the American Insurance Association(AIA), issued the following statement regarding today`s Illinois Senate Transportation Committee hearing entitled "Closing the Insurance Gap: Examining Insurance Practices of For-Profit Commercial Rideshare Companies Operating in Illinois." AIA advocated that commercial rideshare companies, also known as "transportation network companies" or TNCs, should be regulated in the same manner as other "for hire" auto services for the protection of consumers.
Consumers may not be adequately protected when they use ridesharing companies because these services may allow drivers to use their personal automobiles for commercial purposes. Personal automobile insurance coverage does not extend to services being provided on a commercial basis.
Mr. Schneider`s statement follows:
"As the popularity and usage of rideshare programs or TNCs increases, we urge the Committee to consider the protection of consumers as they determine how to regulate these programs. It is essential that passengers who use these programs be protected against risk of unforeseen losses and injuries.
"Private passenger automobile insurance does not cover for hire services. Covering commercial enterprises is simply not the function of this private passenger automobile insurance. Therefore we urge the Committee to ensure that both operators and passengers are protected by requesting that ridesharing programs have the same insurance protections as taxis, limousines and other for hire services."
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Source: American Insurance Association via GlobeNewswire