Amendments made to a California bill that would require minimum insurance standards for ridesharing have eased opposition from companies like Lyft and Uber which, for the past year, have been waging war with state lawmakers on the issue.
Insurance requirements for ridesharing have remained a heated issue for taxicab companies, which can pay upwards of $1 million in insurance premiums per year. They argue that companies like Uber and Lyft sidestep expensive insurance liabilities for their drivers by allowing them to drive using only their personal insurance.
“Right now, there is no rule,” says Armand Feliciano, vice president of the Association of California Insurance Companies (ACIC). “So we said, 'Okay, we're going to make a new commercial standard for you.' When the app is on, it's akin to turning that light on.'”
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