Relating to automobile liability insurance requirements for transportation network company drivers.
HB 3520 updates Texas Insurance Code provisions governing automobile liability insurance for transportation network company (TNC) drivers, such as rideshare drivers. The bill clarifies that required insurance must cover a driver while logged on to a TNC digital network and available to receive ride requests, as well as while engaged in a prearranged ride with a rider in the vehicle. It also distinguishes between the two coverage periods and updates the statutory language to reflect those circumstances.
For the period when a driver is logged on but does not have a rider in the vehicle, the bill requires minimum liability coverage of $50,000 per person, $100,000 per incident for bodily injury or death, and $25,000 for property damage, along with uninsured/underinsured motorist coverage and personal injury protection where otherwise required by law. When a rider is in the vehicle during a prearranged ride, the policy must provide at least $1 million in aggregate liability coverage for death, bodily injury, and property damage, plus the same uninsured/underinsured motorist and personal injury protection coverage requirements. The bill applies only to policies delivered, issued for delivery, or renewed on or after January 1, 2026, and takes effect September 1, 2025.
The bill amends Chapter 1954 of the Insurance Code and directly affects insurance obligations for transportation network companies, their drivers, and insurers writing auto policies in Texas. It preserves and restates the state’s coverage framework for rideshare activity, while clarifying the coverage trigger for periods when a driver is logged in but not carrying a passenger. Existing policies remain governed by prior law until renewal or issuance on or after January 1, 2026.
The bill appears to have received generally favorable treatment in the legislative process, advancing out of the Senate Business & Commerce Committee on a 7-4 vote and later moving forward on the Senate floor. The available voting history suggests the measure itself was ultimately supported, though some related amendments failed, indicating that while the overall policy direction had backing, there was disagreement over details. No committee transcript is available, so the record shows support for updating rideshare insurance rules but limited public explanation of the debate.
The main points of contention likely centered on the scope and timing of insurance coverage for TNC drivers, especially the distinction between logged-on availability and an active ride with a passenger. The failed amendment votes suggest some members sought to change the bill’s terms, possibly around coverage thresholds, liability allocation, or implementation timing, while the majority preferred the bill as filed or committee-reported. Insurers, rideshare companies, and drivers would be the primary affected parties, with consumer protection concerns also likely part of the discussion.