Uber, as well as other ride sharing companies, can remain operating in South Carolina thanks to new legislation allowing TNCs to work in the state with updated insurance requirements.
The law stems from issues that some lawmakers had with Uber’s policy. While the company insured drivers who were actively rendering services, the company did not insure vehicles and drivers when they are driving around, or waiting to get the call to pick up clients. Therefore, if a driver had an accident without driving a client, he or she would not be covered.
With the passage of the law, TNC drivers or TNCs on the driver’s behalf must now maintain primary auto insurance that recognizes that the driver is a TNC driver or otherwise uses a personal vehicle to transport riders for compensation. The insurance must cover the driver while the driver is logged onto the TNC’s digital network and while the driver is engaged in a prearranged ride.
According to the S.C. Department of Insurance, the coverage requirements when the TNC driver is logged onto the TNC’s digital network and is available to receive transportation requests but is not engaged in a prearranged ride include: primary auto liability of at least $50,000 for death and bodily injury per person; $150,000 for death and bodily injury per incident; and $25,000 for property damage.
Following the announcement of the new law, the Property Casualty Insurers Association of America released a statement praising the decision.
“This legislation, crafted by the Legislature and signed by the governor, is designed to make sure the people of South Carolina are protected in a variety of ways, including by closing the insurance gaps that existed for rideshare drivers,” Oyango Snell, PCI’s regional manager, said. “Closing the insurance gaps the entire time a rideshare driver is involved in rideshare activities was our top priority and this new law will ensure the public is protected with appropriate insurance coverage. The insurance language in this bill brings clarity and consistency to rideshare insurance laws and enhances consumer choice and protections.”
