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California Legislature Considering Insurance Policies For Ridesharing Companies

Credit: Jennifer Yang / Flickr

A decorative pink mustache is displayed on the front of a car to indicate its driver is part of the ridesharing company, Lyft.

Two competing bills to be taken up this week in the California Legislature will pit newer app-based ridesharing companies like Uber and Lyft against traditional taxi companies.

Assemblywoman Susan Bonilla says her bill would require ridesharing companies to provide commercial insurance on their driver’s private cars only when their driver’s ridesharing apps are switched on.

“When they, perhaps in their flexible work schedule, are picking folks up and their using their app a couple of nights a week for that extra second job, that would be when the commercial policy would go into effect,” Bonilla says.

Bonilla adds that AB 2293 balances public safety with support for innovative new businesses.

The taxicab and limo industries back another measure. AB 2068 would require ridesharing companies to provide their drivers with commercial coverage at all times, just as taxi companies do.

An underinsured driver working for a ridesharing company struck and killed a girl in San Francisco on New Year’s Eve. The city had to cover the medical expenses.

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