Rideshares And Uninsured Motorist Insurance Coverage
Current law requires a transportation network company or its drivers to secure primary liability insurance coverage for the drivers for incidents involving the drivers during prearranged rides and for periods when a driver is logged into a transportation network company's digital network but not engaged in a prearranged ride. Section 1 of the act requires a transportation network company or its drivers to also secure insurance protection for drivers and for their riders against damages caused by uninsured motorists in the amounts of at least $200,000 per person and $400,000 per occurrence. The insurance policy must provide coverage to drivers and riders at all times the driver is engaged in a prearranged ride.
Current law requires automobile liability and motor vehicle liability policies to provide coverage for damages caused by uninsured motorists; except that the named insured may reject such coverage in writing. Section 2 provides that, if the named insured is a transportation network company securing coverage for a transportation network company driver to protect against damages caused by uninsured motorists, the named insured may not reject the coverage for periods when the transportation network company driver is engaged in a prearranged ride.
(Note: This summary applies to this bill as enacted.)