Bill > HB3520

This bill modifies automobile liability insurance requirements for transportation network company (TNC) drivers, such as those working for Uber or Lyft, by clarifying insurance coverage specifications during different stages of driving. The bill updates existing insurance code to define three specific scenarios with different coverage requirements: when a driver is logged onto the TNC's digital network but not yet engaged in a ride (requiring $50,000/$100,000/$25,000 in liability coverage), when a driver is engaged in a prearranged ride without a passenger in the vehicle (same coverage as previous scenario), and when a driver is actively transporting a TNC rider (requiring $1 million in total aggregate liability coverage). The legislation also mandates that uninsured/underinsured motorist and personal injury protection coverage be maintained in appropriate circumstances. These changes will apply only to automobile insurance policies delivered, issued, or renewed on or after January 1, 2026, providing a transitional period for insurance companies and drivers to adapt to the new requirements. The bill will take effect on September 1, 2025, and is designed to ensure comprehensive insurance protection for TNC drivers during different stages of their work.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3520