As we wrote in a previous blog post, the new ride-sharing service, Uber, has created concerns for regulators and insurance companies alike. From a regulation stand point, local governments have struggled with finding fair rules that keep up with modern technology. On the insurance side, carriers have struggled to accurately assess the risk of being an Uber driver and charging an adequate premium to cover that risk.
The city of Des Moines has moved a step closer to finalizing new regulations that address the new entry of Uber into the market. The city council has proposed new rules that would apply to all taxi and limo services, Uber included. Among those new proposed rules is an insurance requirement that all taxi and limo drivers carry at least $750,000 in insurance.
Insurance carriers have been in development of specialized policies for Uber drivers, but until they are approved for sale by insurance regulators, Uber drivers must purchase a commercial auto insurance policy or risk not having coverage in the event of an accident. A personal auto insurance policy becomes null and void the moment a driver becomes for hire.
If you are looking to drive for Uber, contact your independent insurance professional to make sure your coverage will stay in force while accepting rides for hire.