State Insurance Commissioner approves new auto insurance policy for drivers
California Insurance Commissioner Dave Jones has approved the state’s first official auto insurance policy designed specifically for Lyft and Uber drivers. The policy has been formed to address the problems associated with drive-share companies and the insurance coverage that they offer to their drivers. The insurance policy is coming from MetLife Auto & Home. The policy will provide individual coverage for Uber and Lyft workers, providing them with the protection they have may have been lacking in the past.
Coverage from drive-share companies raises concerns among state officials
Drive-share companies already offer auto insurance coverage, with the typical policy providing some $1 million in liability coverage. The problem, however, is that this coverage only kicks in when a driver has accepted a passenger and is transporting this passenger. Lyft offers a $100,000 contingent policy that is in effect before a driver accepts a passenger. This contingent policy is only in effect if a driver’s personal auto insurance policy does not provide coverage for an accident for any number of reasons.
_________________________Random Quotes to Remember ~ “The best investment is in the tools of one’s own trade.” – Benjamin Franklin
State officials want to ensure that drivers have better coverage options
State officials had expressed concerns that employees of drive-share companies have fallen into an insurance gap. These concerns have called into question whether or not these companies are providing an adequate level of auto insurance coverage for their drivers. Uber has been quite outspoken on the issue, noting that the coverage it provides is more than enough to cover any issues its drivers may face.
New legislation requires drivers to be covered by insurance at all times while operating a vehicle commercially
New legislation in California requires that drivers in the state be insured at all times when driving commercially or otherwise. The law notes that this auto insurance coverage can come from the driver themselves, the company they work for, or a combination of the two. The new insurance policy from MetLife Auto & Home could help close any gaps in insurance coverage that drive-share employees may have, which could help further limit liability and other issues.