New Ridesharing Regulations Proposed in California

Californians have more transportation options than ever before, and the ridesharing industry has created new economic and environmental benefits for the state. Unfortunately, some California legislators are designing 20th century rules to regulate these 21st century companies.

On Wednesday, the California State Assembly will consider Assembly Bill 2293, a measure that would impose new insurance requirements on ridesharing companies. The bill is a giveaway to insurance companies—it allows them to require drivers to carry two policies for doing the same activity. It also allows insurance companies to use fine print exceptions to shirk their commitments to drivers and Californians.

AB 2293 creates a dangerous precedent by defining the simple act of opening an app in a vehicle as a trigger for insurance loopholes. This could allow insurance companies to deny coverage for things like answering business calls in the car or dictating notes with a hands-free note-taking app.

Ridesharing regulations should be balanced and encourage more opportunity and competition. Companies like Lyft and Uber already provide commercial insurance coverage to their drivers, and innovative insurance companies, like MetLife, have created new private policies accommodating ridesharing.

AB 2293 will stifle the growth of the ridesharing industry, harm competition, and shift the burden to drivers who are helping to grow our state’s economy and improve our environment by taking extra cars off the road. This is an insurance industry gift California cannot afford to give.

Contact your California Assemblyman and ask them to vote no on AB 2293.