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Bill

HB 3520

Relating to automobile liability insurance requirements for transportation network company drivers.

89th Legislature (2025) Introduced by Brent Hagenbuch and 1 co-sponsor

HB 3520 establishes minimum automobile liability insurance requirements for Texas transportation network company drivers to close coverage gaps between personal and commercial ridesharing activities.

Placed on intent calendar
#business&commerce--general(i0050) #insurance--motorvehicles(i0435) #vehiclesforhire(s0795) #vehicles&traffic--insurance/financialresponsibility(i0850)
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WeVote Research Nonpartisan
Bill Summary · HB 3520

Legislative bill overview

HB 3520 establishes or modifies automobile liability insurance requirements specifically for drivers working with transportation network companies (TNCs) like Uber and Lyft in Texas. The bill addresses the insurance coverage gap that exists between personal auto policies and commercial TNC coverage by setting minimum insurance standards these drivers must maintain.

Why is this important

TNC drivers operate in a regulatory gray area where personal auto insurance often doesn't cover commercial ridesharing activities, leaving accident victims potentially uncompensated. This bill creates clear insurance requirements that protect both passengers and third parties while potentially reducing litigation and uninsured motorist claims that burden the broader insurance system.

Potential points of contention

  • Cost burden on drivers: Requiring additional commercial or rideshare insurance coverage could increase operating costs for TNC drivers, many of whom earn modest incomes and rely on flexibility as part-time work
  • Coverage standards and adequacy: Disputes may arise over whether minimum insurance requirements are sufficient to cover serious injuries or high-value claims, or conversely, whether they're too stringent compared to other states
  • TNC platform liability: Unclear allocation of responsibility between drivers, TNC platforms, and insurers—specifically whether TNCs should be required to provide coverage or only ensure drivers carry it themselves

Compiled from official sources — confirm details with the bill’s official record.

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