The California Department of Insurance is reminding ride-share drivers and companies such as Uber, Lyft and Sidecar that a new law effective July 1 requires them to carry liability insurance coverage.
Under ridesharing legislation AB 2293 passed in 2014, regular personal auto insurance policies no longer provide coverage for Transportation Network Company (TNC) – a.k.a., ridesharing – activities after July 1, 2015.
Rideshare drivers must now carry personal liability insurance – $30,000 minimum for property damage, $50,000 minimum for injury to a single person, $100,000 minimum for injury to multiple persons. In addition, the ridesharing companies must now provide drivers $1 million in liability coverage "from the time a match is accepted until the passenger exits the vehicle." The companies also must carry $200,000 in excess insurance in the prematch period.
Earlier this year Insurance Commissioner Dave Jones approved new rideshare insurance products offered by Metromile and Farmers Insurance.
“Closing insurance gaps in ridesharing coverage is essential to making sure passengers, other drivers and pedestrians are protected when ridesharing vehicles are on the road,” Jones said in a statement on Wednesday. “This new law is a good start and requires TNCs to provide liability coverage or make sure drivers have liability coverage during all periods the TNC application is on.”
For more information, go to www.insurance.ca.gov.
