Mainers Urged to be Aware of Insurance Risks When Using Transportation Network Companies

Governor Paul R. LePage joined Superintendent of Insurance Eric Cioppa in alerting travelers about a relatively new service that could put users at risk. Although no Transportation Network Companies (TNCs) are known to be operating in Maine, Governor LePage and Superintendent Cioppa says that Mainers traveling to other states where these services are offered should be aware of potential gaps in liability insurance coverage that could adversely impact those making use of them.

TNCs connect travelers to drivers, using internet-based applications or smartphone apps. Unlike taxi or limousine services, TNCs enlist individuals who either rent their private vehicles or use them to provide transport. A number of TNCs operate in more populous states, primarily in larger urban areas. Some of the established companies include Lyft, Uber, and Sidecar.

"Changes in technology and modes of transportation offer opportunities for travelers, but also present new issues to consider," Governor LePage said. "Superintendent Cioppa and I want to keep Maine travelers informed about emerging insurance issues before they present a problem."

Most private auto insurance policies exclude coverage for losses that occur when a covered auto is used to carry passengers for a fee. While some TNCs purchase liability protection for their services, questions remain about how coverage would be applied in the event of an accident.

"Individuals should ensure they are protected before using these new services," Cioppa stated. "Be familiar with your own auto insurance policy and the TNC's commercial insurance policy. Check in with your insurance agent or broker, or contact your insurance company directly, to determine if there may be gaps in coverage should an accident occur when using a TNC."

Cioppa encouraged individuals with questions to call the Bureau's Property and Casualty Division at 800-300-5000 (in Maine), or 207-624-8475. For TTY, please call Maine Relay 711.

The Bureau of Insurance is part of the Department of Professional and Financial Regulation (www.maine.gov/pfr), which encourages sound business practices through high quality, impartial and efficient oversight of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations.