Proposed CPUC regulations improve consumer protection for Uber, Lyft and Sidecar
News: 2014 Press Release
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:
- Link to proposed decision from CPUC June 10, 2014.
- CDI letters to the CPUC.
- CDI Investigatory Hearing Background White Paper from March 21, 2014.
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.
