Taxi drivers circled the State Capitol Wednesday in support of regulating ridesharing apps like Uber and Lyft, something those startups say will cripple their business.
Assembly Bill 2293, if passed, would toughen the rules on Uber and Lyft drivers by requiring additional insurance – up to $1 million in commercial liability.
Taxi drivers are already commercially insured. Uber and Lyft drivers are personally insured, because he or she owns the vehicle.
According to Uber, commercial insurance kicks in as soon as a passenger gets in and, in some cases, even when there is no passenger. The issue with the ridesharing startups is the amount of coverage that is being called for.