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A compromise reached between California legislators and ride-share companies Uber and Lyft this week suggests that insurance companies may be asked to create a new type of policy specifically for peer-to-peer ride-sharing.
As we noted briefly at the end of last week, representatives of Uber and Lyft were making noise in the press and getting bratty in Sacramento with possible threats of moving their businesses out of the state in the face of AB 2293, proposed by Assemblywoman Susan Bonilla (D- Concord). The bill originally proposed requiring commercial insurance policies for all ride-share drivers, saying that personal insurance policies could not be expected to cover damages that occurred while being a car-for-hire. The bill that is now moving forward, having passed a Senate vote on Wednesday, still creates such a “firewall” between commercial use and personal insurance policies, as the powerful insurance lobby hoped, but it lowers the amount of “excess” liability coverage that Uber and Lyft will need to have their drivers carry. After compromises, Uber and Lyft now support the bill as written… (more)