bill shrinking rideshare coverage before pickup

The text as introduced · 462 words

89R15574 SCR-F

By: Spiller
H.B. No. 3520

A BILL TO BE ENTITLED

AN ACT

relating to automobile liability insurance requirements for

transportation network company drivers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1954.051(b), Insurance Code, is amended

to read as follows:

(b) Insurance maintained under this subchapter must allow a

transportation network company driver to use a personal vehicle to

transport transportation network company riders for compensation

and cover the driver while:

(1) the driver is logged on to the transportation

network company's digital network as provided by Section 1954.052;

or

(2) the driver is engaged in a prearranged ride with a

transportation network company rider in the vehicle as provided by

Section 1954.053.

SECTION 2. Section 1954.052, Insurance Code, is amended to

read as follows:

Sec. 1954.052. INSURANCE REQUIREMENTS: WITHOUT

TRANSPORTATION NETWORK COMPANY RIDER IN VEHICLE [ BETWEEN

PREARRANGED RIDES ]. At the time a transportation network company

driver is logged on to the transportation network company's digital

network and is available to receive transportation network requests

but is not engaged in a prearranged ride or is engaged in a

prearranged ride without a transportation network company rider in

the vehicle , the automobile insurance policy must provide:

(1) the following minimum amounts of liability

insurance coverage:

(A) $50,000 for bodily injury to or death for

each person in an incident;

(B) $100,000 for bodily injury to or death of a

person per incident; and

(C) $25,000 for damage to or destruction of

property of others in an incident;

(2) uninsured or underinsured motorist coverage where

required by Section 1952.101; and

(3) personal injury protection coverage where

required by Section 1952.152.

SECTION 3. Section 1954.053, Insurance Code, is amended to

read as follows:

Sec. 1954.053. INSURANCE REQUIREMENTS: WITH TRANSPORTATION

NETWORK COMPANY RIDER IN VEHICLE [ DURING PREARRANGED RIDES ]. At

the time a transportation network company driver is engaged in a

prearranged ride with a transportation network company rider in the

vehicle , the automobile insurance policy must provide, at a

minimum:

(1) coverage with a total aggregate limit of liability

of $1 million for death, bodily injury, and property damage for each

incident;

(2) uninsured or underinsured motorist coverage where

required by Section 1952.101; and

(3) personal injury protection coverage where

required by Section 1952.152.

SECTION 4. The changes in law made by this Act apply only to

an automobile insurance policy delivered, issued for delivery, or

renewed on or after January 1, 2026. An automobile insurance policy

delivered, issued for delivery, or renewed before January 1, 2026,

is governed by the law as it existed immediately before the

effective date of this Act, and that law is continued in effect for

that purpose.

SECTION 5. This Act takes effect September 1, 2025.