Removing Barriers Blog

TNC Comp and Collision Requirement Replaced With Fund in Utah
Posted April 07, 2016 by CUNA Advocacy

Last session, in an effort to protect lienholder collateral, the Utah legislature enacted legislation requiring transportation network companies (TNCs), such as Uber and Lyft, to provide comprehensive and collision insurance for drivers while they are engaged in TNC activities. However, with the enaction of S 201 this session, the comp and collision requirement is replaced with a TNC-capitalized lien recovery fund. Under the new law, lienholders can submit a claim for damages to vehicles that occur while being used for TNC purposes. The measure is scheduled to sunset July 1, 2018. 

Uber, which vigorously opposed the original comp and collision requirement, proposed the recovery fund, and the Utah League and other members of the Utah financial services industry were consulted.