For several years now there is bad blood between Uber drivers and Taxi drivers. Not only has required a large bite from the standard Taxi driver's share of the market by not needing to pay the same for car insurance but they have done so.
Finding out the hard way
There have been numerous high profile car accidents involving Uber drivers in interval 1. It became clear that Uber drivers didn't have any kind of private Uber Car Insurance that would carry into period 1. The Uber drivers had to find out the hard way that their totaled car and wasn't going to be paid for by their private insurer. The California legislature stepped in to define what Uber Car Insurance (rideshare) was and made the determination that private insurance without a rideshare endorsement would not cover the Uber motorist.
What were Uber's obligations under the brand new law?
Uber itself under the new law is needed to carry $200,000 in excess accountability for interval 1 in addition to the Uber motorist having to buy Uber Car Insurance(a rideshare endorsement) to satisfy the new CA law period 1 minimums on July 1, 2015.
Uber Car Insurance, cost of doing business
Up until now there have now been many Uber automobile drivers that were getting by on either not knowing or not telling their private insurance carrier they drove like Uber and Lyft for rideshare companies. Unlike the Taxi Cab drivers didn't need to cover a cost of conducting business in doing so they. These rideshare drivers also were taking a large danger that they might not get into a collision in interval 1. When they did most all of the private policies didn't pay for any comprehensive, collision, liability or underinsured motorist and would not. In other words the driver and their car were out of luck. The commercial insurance of uber just goes into effect in period 2 and 3. That has changed in CA. The motorist that is rideshare will have to cover a cost to work to get a rideshare endorsement that carries their coverage into period 1. The great news for the rideshare motorist is that the cost to do business in CA(buying a policy having a rideshare endorsement) is nowhere near the commercial taxi cab drivers cost of doing business at $5000 a year in insurance premiums. In addition the rideshare motorist who buys Uber Car Insurance will now be able to possess their car completely covered with complete coverage extended into period 1.