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California sets ride-sharing insurance standards

Published on NewsOK Modified: August 27, 2014 at 9:26 pm •  Published: August 27, 2014

SACRAMENTO, Calif. (AP) — Drivers providing services for ride-sharing companies such as Lyft and Uber would have to carry a minimum level of insurance under a compromise the state Senate approved Wednesday.

Assemblywoman Susan Bonilla, D-Concord, said her AB2293 will ensure that drivers buy insurance that will protect the public.

Both of the major ride-sharing companies supported her bill after she agreed to reduce the required amount of excess insurance from $500,000 to $200,000 when drivers do not have passengers in their vehicles. That's on top of the basic policy requiring liability insurance of $50,000 for killing or injuring a single person, $100,000 for damage from a single accident and $30,000 for property damage, Bonilla said.

The companies previously had objected that lawmakers were stifling innovation by insisting on more expensive liability insurance. The rapidly developing ride-sharing industry lets drivers use their own cars to transport customers, who summon drivers using mobile applications.

"The point of this bill is not to stifle innovation but rather to ensure it does not come at the cost of public safety," said Sen. Holly Mitchell, D-Los Angeles, who carried the bill in the Senate.

The Senate approved the bill on a 30-4 vote, sending it to the Assembly.

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