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Proposed CPUC regulations improve consumer protection for Uber, Lyft and Sidecar

News: 2014 Press Release

For Release: June 12, 2014
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Proposed CPUC regulations improve consumer protection for Uber, Lyft and Sidecar
Many of Insurance Commissioner's recommendations adopted in CPUC proposed decision

SACRAMENTO, Calif. - Insurance Commissioner Dave Jones issued the following statement regarding the June 10 proposed decision of California Public Utility Commission (CPUC) President Michael Peevey that strengthens insurance requirements for companies like Uber, Lyft and Sidecar.

"I applaud President Peevey's proposed decision to make sure that Transportation Network Companies (TNC) like Uber, Lyft and Sidecar maintain $1 million in primary liability insurance that begins the moment drivers switch on the application. Personal auto insurance is not available to cover TNC drivers, their passengers, pedestrians or other drivers they might run into. Unless the TNCs are required to provide insurance, drivers, passengers and pedestrians will be left without adequate protection. This proposed decision ensures that they are protected with liability insurance from the moment a driver switches on the application which connects drivers and riders.

Following an April 24 public hearing I held on insurance coverage gaps, I recommended that the CPUC require the TNCs to provide $1 million in primary liability insurance from the moment the application is switched on and also to make sure that optional coverages the driver had purchased on his or her personal automobile policy (such as medical payments, comprehensive and collision, or uninsured or underinsured motorist) are matched by the TNCs insurance when the driver uses his or her personal vehicle to transport passengers for money. I continue to urge the CPUC to include all of our recommendations in their regulations.

The CPUC's proposed decision would dramatically improve the situation for drivers, passengers and pedestrians. I encourage the CPUC to adopt the proposed decision at their July meeting.

My department will continue to work with the CPUC, the insurance industry, and other stakeholders to make sure there is insurance protection for California consumers."

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Media Notes:



The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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