rideshareInsurance Laws For Ride-Share Drivers In Effect Now

Since the rise of Transport Network Companies (TNC), Über and Lyft, there have been disputes over what car insurance covers when the driver has a passenger in their personal vehicle.

New insurance rules for ride-share drivers and companies have liability insurance coverage during all three periods. The three periods are:

  • Period one: App open and waiting for a match
  • Period two: Match accepted, passenger not yet picked up
  • Period three: Passenger in the vehicle until the passenger exits the vehicle

Ride-sharing companies are required, under California law, to provide drivers $1 million in liability coverage from the time a match is accepted until the passenger exits the vehicle. As of yet, ride-sharing companies do not provide comprehensive and collision coverages to the driver unless the driver purchases those coverages on his or her personal auto insurance policy.

The new rules are in effect under Assembly Bill 2293 which was signed into law in September 2014. This is aimed to ensure that passengers, other drivers, and pedestrians are protected when ride-sharing vehicles are on the road.

The AB 2293 requires:

  • The TNC company to maintain $1 million in liability coverage from the time a match is accepted until the passenger leaves the vehicle. This includes periods two and three.
  • The TNC company or the driver to maintain primary liability insurance in the first period, before the driver gets a match.
  • Regular personal auto insurance policies will provide no coverage for TNC activities after July 1, 2015.

To receive complete auto insurance coverage, whether you drive for a ride-share company or not, visit Weaver & Associates, Inc. for a quote and a policy designed for each individual’s needs.