Ride-sharing companies that operate in California will now have to abide
by new insurance rules. The new law requires companies like Uber and Lyft
to meet certain minimum liability insurance coverage requirements, which
are intended to address coverage gaps that can arise with this new type
of transportation service.
As we have previously
discussed on this San Diego Injury Blog, transportation network companies (TNCs) use smart phone applications
(apps) to connect drivers using their personal vehicles with passengers
who need a ride. One of the primary concerns with ride-sharing companies
is who is responsible if an accident occurs, particularly if an uninsured
or underinsured driver is at fault.
The new law (AB 2293) mandates that TNCs to carry liability insurance coverage for three periods:
1. the application is open and the driver is waiting for a match; 2. the
match is accepted, but the passenger not yet picked up (i.e., driver is
on his/her way to pick up the passenger); and 3. from when the passenger
enters the vehicle and until the passenger exits the vehicle. The new
law specifically requires:
- The transportation network company to maintain $1 million in liability
coverage from the time a match is accepted until the passenger exits the
vehicle (periods two and three).
- The driver or the TNC company to maintain primary liability insurance in
the pre-match period (period one).
- $50,000 minimum for injury to a single person
- $100,000 minimum for injury to multiple persons
- $30,000 minimum for property damage
- TNCs must also maintain $200,000 in excess insurance in the pre-match period.
“Closing insurance gaps in ride-sharing coverage is essential to
making sure passengers, other drivers and pedestrians are protected when
ride-sharing vehicles are on the road,” California Insurance Commissioner
said in a press statement. “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.”
If you or someone you love has been seriously injured in a San Diego motor
vehicle accident, don’t hesitate to
contacta San Diego personal injury attorney at the Law Offices of Robert Vaage for a free consultation.