Transportation network companies are very popular. Companies such as Uber, Lyft and others are transportation network companies. There is also a company by the name of Empower that is a transportation network company. Empower however does not carry insurance coverage. They claim that they require that their drivers have coverage. However if the driver’s coverage is simply their personal auto coverage and they’re engaging in a livery service, then their coverage is voided.
Transportation Network Car Accident-Va. Law
However Virginia law fills in the gaps. A transportation network company must provide liability and also UM/UIM coverage. This applies while the driver is transporting a passenger.
If you need insurance information from a transportation network company, you can make a written request to the company with the date, approximate time, location and, if available, the driver’s name and a copy of the Police Crash Report. Per Va. Code § 46.2-2099.52(G), they must respond within 30 days by furnishing or stating the name of the insurer providing primary coverage, the last known address of the driver and whether the driver was logged into the digital platform and whether the driver was acting in the course of a passenger transaction at the time of the collision.
A link to determine what available coverage is for Lyft vehicles is Lyft’s proof of insurance – Lyft Help. Uber coverage can be found at Updates to the insurance Uber maintains on behalf of drivers and delivery people | Uber Blog
Also Va. Code 46.2-2143.1 et seq. may apply to companies like Door Dash. Door Dash is an on-demand property motor carrier governed by this Code section and the ones that follow, in particular as far as your ability to request information.
The coverage requirement applies where the driver is logged into the network. Also it applies where the driver accepts a prearranged ride request.
When the driver is logged into the system, the transportation network company must verify that the driver has a policy.
Read the statute for the precise requirements. In general, the driver must have at least $50,000 coverage when in service and with a passenger the coverage bumps up to $1,000,000 liability and UM/UIM. See Va. Code § 46.2-2099.52.
Transportation Network Car Accident-Logging In vs. Accepting
When the driver accepts a prearranged ride request on the company’s digital platform, he must have $1,000,000 in liability coverage and $1,000,000 in UM/UIM coverage. That continues until the driver completes the transaction or until the prearranged ride is completed, whichever is later.
The liability coverage is primary.
The UM/UIM coverage applies from the moment the passenger enters the vehicle until the passenger exits the vehicle.
The statute is clear. The company must verify that the driver has this coverage.
Companies like Empower attempt to shift the burden to the driver. That is, the driver has to get the coverage. That may work if the company has assured compliance. If the company has not assured compliance, then the company is on the hook.
Marginal companies or start-ups may be able to evade responsibility. That is part of the risk of using these types of companies for transportation because their thin financial resources may put them out of reach.
Outside of Virginia
In a case where the passenger is picked up outside of Virginia and the driver is Virginia licensed and the vehicle is Virginia registered and that crash happens in Virginia, then the required UIM coverage should kick in. As soon as the vehicle came into Virginia with the app engaged and in particular with a passenger then Va. Code § 46.2-2099.45 applied. That required a Certificate of Fitness. Va. Code § 46.2-2099.46 also applies and the insurance requirement applies pursuant to Va. Code § 46.2-2099.52.
Peer to Peer Companies
Companies like Turo which are so-called vehicle sharing companies, are governed by Va. Code § 46.2-1408. Under Va. Code § 46.2-1409, they are required to carry the same minimum limits as is required under Va. Code 46.2-472. Some interesting questions can arise as to the duty of the owner to the renter. In Ashlock v. Beremash, 2024 Cal. App. LEXIS 878, the owner verified the identity of the initial renter. The problem arose with subsequent users.
Uber
Uber may operate under a number of different names. The correct Uber entity is Uber Technologies, Inc. The company that actually contracts with the drivers is Rasier, LLC.
Driver Alone in Vehicle
In instances where the driver is alone in the vehicle but is on the app, then as of May 2025 he has $30,000 in UIM coverage. If the driver has an additional policy with a different carrier, then that UIM coverage along with the Uber UIM coverage may stack above the defendant’s liability coverage. For instance if the defendant has $100,000 in coverage and the Uber driver has $30,000 through Uber and 50,000 through his own carrier, then he has a total of $180,000 in coverage.
Once a passenger gets in the vehicle, that may change. The personal carrier may properly deny coverage to him for running a livery service.
Call or contact us for a free consult. Also for more info on transportation networks see the Wikipedia pages. Also see the post on this site dealing with contract issues since the relationship with the transportation network is contractual
