December 31, 2014
California Enacts Insurance Requirements for Uber, Lyft
California law makers enacted, and the governor signed on September 17, 2014, a new law that sets insurance requirements for transportation network companies (TNCs) like Uber and Lyft. Assembly Bill 2293, which becomes operative on July 1, 2015, “requires TNCs to provide insurance coverage or make sure their drivers have coverage during all times the TNC application is on,” according to California Insurance Commissioner Dave Jones. Under the new law, TNCs or their drivers must maintain $1 million primary insurance coverage from the time the driver accepts a passenger until the time the passenger exits the car. The insurance must cover a minimum of $50,000 for injury to one person, $100,000 for injury to multiple people, and $30,000 for property damage. The California Department of Insurance recently announced it is ready to begin reviewing auto insurers’ policies to be offered to TNCs.