Ride-hail regulation stalled on “onerous” insurance requirements

Uber, Lyft and even some insurance companies say Florida legislation on insurance requirements is overly heavy

Insurance News

By Lyle Adriano

While the Senate Judiciary Committee is meeting on Feb. 9 to deliberate on Senate Bill 1118, ride hail companies such as Uber and Lyft are calling the consumer protection legislation as “onerous.” The bill, once passed, would require ride hailing network drivers to have the same amount of coverage taxi and limo drivers have whenever they log on to their respective apps until they log off.

“We are disappointed that Senator Simmons chose to depart from the approach taken by the 28 states that have adopted Transportation Network Company insurance guidelines,” said Uber Technology Inc. communications director Bill Gibbons. “By adding red tape and imposing artificial costs, the amended Simmons bill would limit the number of Floridians who can access the economic opportunity provided by ridesharing.”

Uber is holding a statewide petition drive to persuade Senate leaders “to pass modern, sensible ridesharing legislation.”

SB 1118 is a bill proposed by Sen. David Simmons, R-Altamonte Springs, to allay the insurance industry’s concerns about the gaps in coverage in ridesharing services. The amended bill, however, will require more insurance coverage than the amount stipulated by the National Conference of Insurance Legislators model act.

“We are still working with legislators in the Senate to come up with a compromise that best protects Floridians,” Property Casualty Insurers Association of America state government regulations manager Logan McFaddin remarked.

Ride hailing companies have offered Rep. Matt Gaetz’ HB 509 as an alternative. The bill also addresses the insurance issues of transportation network companies but without levying additional and excessive costs.
 

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