The insurance requirements for transportation network companies operating in California, including Uber, Lyft and Sidecar, were increased under an amendment signed last week by Gov. Jerry Brown. The law requires drivers of the services to maintain primary liability insurance coverage of at least $50,000 per person and $100,000 per occurrence of death and personal injury during the time they are at work using the rideshare apps. Coverage is required for drivers as soon as they turn on the app, as opposed to the current system of requiring coverage whenever they accept a fare.
The amendment also includes the creation of a “personal insurance firewall” to ensure policyholders will no longer subsidize the transportation network companies. Regulation of this sort may become increasingly common within the developing “sharing economy,” which allows people to generate revenue by lending use of their belongings — whether it be a car, like with Uber, a couch or bed, as with Airbnb, or smaller things, like tools needed for home improvement. The amended law will take effect next summer.
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