City of Des Moines proposes new Taxi/Uber ordinance

///City of Des Moines proposes new Taxi/Uber ordinance

City of Des Moines proposes new Taxi/Uber ordinance

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.

By | 2015-05-28T01:07:30+00:00 February 9th, 2015|Commercial Auto Insurance|0 Comments

About the Author:

Brad Phillips is a Managing Partner with Phillips Stafford Insurance Group. Brad has been in the insurance and financial services industry since 2009. He spent time as a captive insurance agent before co-founding Phillips Stafford Insurance Group. Brad was named a "Forty Under 40" by the Des Moines Business Record as well as a 2006 regional winner and top-10 finalist for the Global Student Entrepreneur Awards, presented by Mercedes-Benz Financial and the Entrepreneurs Organization (EO). In 2007 Brad became a published author when he contributed a chapter to Student Entrepreneurs: Graduating With a Profit, a book exploring business ethics with an emphasis on entrepreneurial activities.

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