Have you ever thought about becoming a contractor for a ride-sharing service, such as Uber or Lyft? It’s an enticing concept, getting paid to provide taxi services for people in your community, costing you nothing but the price of gas. But is that really the only cost? You are required to have personal insurance for your vehicle in Georgia, but your personal auto insurance will not cover an incident when you are driving for Uber or Lyft, whether you are heading to pick someone up or dropping off someone at their destination, as these are considered commercial activities.
Georgia State lawmakers failed last year to pass legislation that would regulate these ride-sharing services, a move they made because under Georgia law, there is no requirement for these companies to carry insurance related to their business activities, which leaves drivers in a jam when faced with a collision or damage to their vehicle.
The good news is, new legislation has been introduced that will require these ride-sharing services to increase their auto insurance coverage. House Bill 190 requires that companies such as Uber and Lyft provide $1 Million in auto insurance coverage for all of their employed drivers. These policies would go into effect as soon as a driver receives a request for a ride. The Bill will also require policies to provide a minimum of $300,000 coverage for bodily injury or death and $50,000 for property damage.
Uber has been opposing similar legislation in other parts of the country, as it places financial strain on the company. However the objective of this legislation is to cover the gaps in auto insurance coverage that ride-sharing companies create, which is what Georgia lawmakers are focusing on. Please contact Fleming & Riles Insurance today to learn more about our auto insurance policies and other products we offer at (229) 436-3408.