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.
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Media Notes:
Audio from the Department of Insurance's investigatory hearing.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
