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New insurance rules for ride-share companies and drivers take effect today

News: 2015 Press Release

For Release: July 1, 2015
Media Calls Only: 916-492-3566
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New insurance rules for ride-share companies and drivers take effect today

SACRAMENTO, Calif. - A new law requiring that ride-share drivers and companies have liability insurance coverage during all three periods in which they use the ride-sharing application goes into effect today, July 1, 2015. Assembly Bill 2293 (Bonilla) was signed into law in September 2014.

"Closing insurance gaps in ride-sharing coverage is essential to making sure passengers, other drivers and pedestrians are protected when ride-sharing vehicles are on the road," said Insurance Commissioner Dave Jones. "This new law is a good start and requires TNCs to provide liability coverage or make sure drivers have liability coverage during all periods the TNC application is on."

Transporting passengers for hire, also known as livery, has long been excluded from personal auto policies most Californians maintain on their vehicles. Jones encouraged insurers to develop new products that filled identified coverage gaps. To date, the department has approved new insurance products for Farmers Insurance and Metromile to cover ride-share drivers in the pre-match period.

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. But ride-sharing companies currently do not provide comprehensive and collision coverages to the driver unless the driver purchases those coverage on his or her personal auto policy.

The California Public Utilities Commission (CPUC) has established rules and regulations for TNCs. "Insurance regulations, in conjunction with the CPUC's other rules, increase consumer safety and protection when using online-enabled transportation," said CPUC Commissioner Liane M. Randolph. "These regulations complement the other requirements the CPUC has instituted for TNCs to operate, including a criminal background check for drivers, a car inspection program, a zero-tolerance policy on drugs and alcohol, and driver training program requirements."

Media Notes:

  • Meeting the demands of new technology and ride-sharing drivers {Infographic}
  • Information about Farmers Insurance for TNC drivers is available at
  • Information about Metromile Insurance for UberX drivers is available at
  • Transportation Network Company services generally fall into three periods:
    • Period one: App open - waiting for a match.
    • Period two: Match accepted - but passenger not yet picked up (i.e., driver is on his/her way to pick up the passenger).
    • Period three: Passenger in the vehicle and until the passenger exits the vehicle.
  • AB 2293 requires:
    • Regular personal auto insurance policies provide no coverage for TNC activities after July 1, 2015.
    • The TNC company to maintain $1 million in liability coverage from the time a match is accepted until the passenger exits the vehicle (periods two and three).
    • The TNC company or the driver to maintain primary liability insurance in the pre-match period (period one).
      • $50,000 minimum for injury to a single person
      • $100,000 minimum for injury to multiple persons
      • $30,000 minimum for property damage
    • TNCs must also maintain $200,000 in excess insurance in the pre-match period.


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 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.

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