New legislation will place auto insurance requirements on ride share companies
New legislation in Florida could affect the way ride-share companies receive auto insurance. Companies like Uber and Lyft, which providing transportation services with the aid of mobile apps, have been at the heart of debate concerning issues in the auto insurance sector. These companies typically meet the minimum requirements but are not technically required to do so because of the way they operate. The new legislation would codify existing standards, ensuring that companies like Uber and Lyft are required to comply with auto insurance regulations as outlined by the state.
Uber and Lyft have received criticism for their brand of insurance coverage in the past
In the past, Uber and Lyft have been the subject of controversy in the auto insurance space. One of the major concerns that automakers have had concerning these companies is the level of coverage that they provide their drivers. Lawmakers had expressed concern about insurance gaps, which could have left drivers and passengers exposed to serious risks. In other states, these concerns have lead to new legislations being introduced, some of which Uber has been very opposed to. In Florida, however, Uber has shown support for the legislation proposed by lawmakers, noting it is “sensible.”
New requirements align with coverage already offered by ride share companies
If the new legislation becomes law, ride share companies, or their drivers, will have to have primary auto insurance that complies with the state’s standards concerning commercial insurance coverage. The legislation requires that this coverage become active once a driver logs into a ride share application. In the past, this coverage was only active when a driver picked up a passenger and not before. The legislation will also require that drivers transporting a passenger have coverage for no less than $1 million for death and bodily injury.
Legislation continues to gather support from various parties
Overall, the requirements outlined by the legislation are in line with the coverage that ride share companies Uber and Lyft already provide. Legislators are hopeful that the bill will become law, which may ensure more protection for ride share drivers and passengers alike. Ride share companies have shown some support for the legislation, which may provide it with the momentum it needs to make it through the legislative process.