SB262 Alabama 2016 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

Republican

Session

Regular Session 2016

Title

Transportation, transportation network companies, insurance coverage and disclosure requirements, provided for

Summary

SB262 requires Transportation Network Companies (TNCs) and their drivers to carry defined primary auto insurance during use of the TNC platform and rides, include disclosure of coverage, and set minimum liability limits.

What This Bill Does

If passed, the bill requires TNC drivers to maintain primary auto insurance that covers them while they are logged into the TNC network or delivering a prearranged ride, with minimum limits ($50,000 per person/$100,000 per incident/$25,000 for property damage when not in a ride; $1,000,000 for a prearranged ride). Coverage can come from the driver's policy, the TNC's policy, or a combination; if the driver's coverage lapses, the TNC's coverage can step in. The bill also requires proof of coverage, disclosure of coverage details to drivers before they can accept rides, and reporting of when drivers log on or off for accident investigations. It also authorizes exclusions of certain coverage under personal policies during TNC use and outlines insurer duties and coordination between insurers.

Who It Affects

• TNC drivers and their vehicles: must carry primary insurance that covers use related to the TNC platform, provide proof of coverage, and disclose their status (logged in or on a ride) in certain situations.
• Transportation network companies and auto insurers: must provide, verify, and coordinate the required coverage, disclose policy details to drivers, and handle potential exclusions and defense responsibilities

Key Provisions

• Defines terms: digital network, personal vehicle, prearranged ride, TNC, driver, and rider to clarify who is covered and when.
• Insurance requirements: drivers must have primary auto insurance that covers them while logged in or during a prearranged ride, with minimum limits ($50k/$100k/$25k when waiting; $1,000,000 during a ride). Coverage may come from the driver, the TNC, or both; if driver coverage lapses, the TNC coverage must step in.
• Disclosure and proof: drivers must carry proof of coverage and TNCs must disclose the coverage they provide to drivers before they can accept ride requests; drivers must disclose their status at accident requests and provide coverage information to involved parties.
• Exclusions and coordination: personal auto policies may exclude coverage during TNC use or rides; insurers may not be required to cover those periods under the personal policy, but other policies (e.g., TNC policy) can provide coverage; insurers must defend excluded claims and coordinate with other insurers when multiple policies apply.
• Reporting and timing: insurers must disclose applicable coverages and times of on/off log-in during accident investigations; times of log-on/off must be reported for claims.
• Effective date: the act becomes law on the first day of the third month after final passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Transportation