Insurance Commissioner makes initial recommendations on Uber, Lyft, Sidecar insurance
News: 2014 Press Release
SACRAMENTO, Calif. - Commissioner Jones made his initial recommendations to the CPUC today, following the California Department of Insurance's investigatory hearing on March 21, 2014 relating to insurance issues and Transportation Network Companies (TNCs). The initial recommendations include:
·The CPUC should refine the definition of "when providing TNC services" to cover the "app on, no match" period and require the $1 million commercial liability policy to apply during this period. There appears to be a significant insurance gap for drivers, pedestrians and third parties that are involved in an accident with TNC-related vehicles during this period.
·TNCs should also be required to carry a minimum of $1 million uninsured/under insured motorist coverage and a minimum of $50,000/$100,000 comprehensive and collision coverage, if the driver has purchased this coverage on his or her own policy. Drivers who use their personal vehicles for a TNC purpose run a strong possibility of having claims denied by their personal automobile insurance company because the driver used the car for a commercial or livery purpose.
The department will continue to review the testimony and other documents from the hearing and may have additional recommendations in the future.
# # #
Audio from the Department of Insurance's investigatory hearing.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $289 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 web site at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.HELP or 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.