Uber Insurance Bill Passes In Georgia

The Georgia House has voted to require Uber drivers to have commercial insurance. House Bill 190, sponsored by Republican lawmaker Rich Golick, requires Uber’s drivers to be covered for $300,000 in bodily injury damages and $50,000 for property damage.

The insurance would need to cover the driver anytime they are logged into the company system regardless if any passengers are onboard. Golick spoke about the bill saying it, “provides for reasonable insurance coverage requirements from the time the driver’s app is on through the time that the passenger is dropped off.” Uber spokesman Taylor Bennett reportedly said that the bill “would create a very difficult landscape for us to operate in Georgia.”

This most recent legislation is just the latest of the insurance troubles experienced by the ride-sharing industry. Are ride-sharing vehicles personal or commercial?

While the answer is likely commercial, reports indicate many Uber drivers are not disclosing their work with Uber to their insurance carrier. Often insurers don’t ask and Uber and Lyft drivers don’t tell, likely because commercial insurance can cost a lot more than personal coverage. An Uber driver interviewed by Forbes mentioned that the commercial insurance cost for them would be $800 per month. Another Uber driver, Kelly Dessaint, told Forbes, “I’d guess that 95 percent to 98 percent of drivers are lying or hiding. It’s a whistling-past-the-graveyard attitude.” A growing trend for Uber drivers who carry personal insurance and don’t disclose their Uber driver status to their insurance company is a cancelled policy.

Ride-sharing companies Uber and Lyft do offer extra coverage to their drivers, but it doesn’t kick in until they are en route to pick up a passenger, meaning there’s a gap when they are logged into the system and not driving anyone or matched to a passenger where greater than personal insurance has become necessary. With drivers lying and getting into trouble with insurance, is there a business opportunity to sell insurance? At least five insurers think that there will be. New hybrid polices, geared toward ride-sharing drivers are currently being developed in California.

While Uber works to iron out their driver insurance issues, they have made an acquisition. Uber recently purchased Decarta, a mapping-software company. This move raises eyebrows as to whether or not Uber will be parting ways with longtime partner and investor, Google. To thicken the plot further, Google is reportedly developing a ride-sharing app of its own.