Uber and Lyft fight auto insurance legislation

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Ride-share companies continue to fight legislation that could have a severe impact on their business

Ride-share companies Uber and Lyft are fighting legislation that could, essentially, ruin their business. Auto insurance is at the heart of the legislative battle that has been brewing in the ride-share sector for some time. Both Uber and Lyft have been the subject of criticism recently due to the way they handle insurance coverage for their drivers. The matter has become so problematic that government officials have introduced new legislation to address the issue.

Legislation aims to place higher insurance requirements on ride-share drivers

Assembly Bill 2293 aims to create a new type of auto insurance specifically for people whose job it is to transport paying passengers. The legislation is expected to make insurance coverage for these drivers significantly more expensive than it is currently. If this is the case, companies like Uber and Lyft will have to charge more for their services in order to offset higher expenditures on insurance.

Bill calls for more thorough background checks for drivers, which could affect insurance costs for Uber and Lyft

storm auto insurance carAnother pending legislation will also require ride-share companies to conduct background checks for all their drivers. This, too, could have a significant impact on the cost of a driver’s auto insurance coverage. Uber suggests that this legislation is simply unnecessary bureaucracy that would have limited value. Uber claims that recent legislation is trying to make ride-sharing seem like a simple taxi service, which it is not.

Uber and Lyft find success with their services despite controversy and problems regarding auto insurance coverage

Despite recent controversies, both Uber and Lyft have managed to find a significant degree of success and growth. The companies have offered a viable alternative to traditional taxi services, satisfying a niche demand that has long gone unaddressed. Auto insurance and how it is managed by both companies is the primary problem. Uber is currently one of the most vocal companies concerning this issue and has collected some 60,000 signatures on a petition meant to defeat the legislation targeting itself and Lyft on insurance matters.

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