States, cities start tackling ride-share insurance issues

Sharing, we have all learned no later than kindergarten, is a good thing. So who would have thought the public policy issue causing the most consternation among insurers over the past year would be about so-called “ride-sharing”? Well it has, and state legislatures and municipalities have taken notice, and in some cases action, to address the insurance implications of this new development in technology and transportation. 

The term “ride-sharing” is actually a bit of a misnomer, as the activity at issue — matching a driver and a passenger through a smartphone app developed and administered by transportation network companies, or TNCs — is really not sharing at all. Rather, it’s using one’s personal vehicle to transport another person or persons from one place to another for a fee. Still, it has been cast as part of the new and innovative “sharing economy,” in which new technologies enable individuals and businesses to use resources more efficiently.