Legislation in California aims to change the way insurance works for ride-share companies
Ride-sharing companies Uber and Lyft have been working together to combat legislation in California that would make changes to the state’s auto insurance requirements. The two companies typically compete with one another quite aggressively, but have become allies because of this controversial legislation. The legislation in question, Assembly Bill 2293, aims to place higher insurance requirements on both companies and the drivers that they hire. Uber and Lyft believe that these higher requirements would have a negative impact on their business.
Legislation bans the use of a driver’s private insurance when their vehicle is being used for commercial purposes
After several weeks of negotiations, state lawmakers may have come to a compromise with the two companies. A deal is forming within the Legislature concerning a measure that is expected to be introduced to Assembly Bill 2293 later this week. The measure ensures that ride-share drivers would not use their own private insurance coverage when while working, eliminating some of the controversy that has surrounded Uber and Lyft when it comes to auto insurance coverage.
Uber and Lyft remove their opposition to the bill
Both companies have removed their opposition to the legislation. The bill allows for insurance companies to create new commercial auto insurance policies that are specifically focused on the ride-share industry. Many insurers have voiced their support for the legislation and some are expected to introduce new products as soon as the legislation is signed into law.
Legislation may be signed into law by the end of the week
The latest iteration of the legislation is being praised for promoting the creation of new insurance products and establishing more balance between consumer protection and innovation. Auto insurance for the ride-share industry has been a controversial issue in California and other states for some time. This legislation may be enough to dislodge some of this controversy and it may serve as an example for other states that are struggling with similar issues. Both Uber and Lyft have ceased their campaigns against the legislation.