Posted on behalf of Phillips Law Group on Apr 16, 2015 in Local
Uber and Lyft, California-based technology companies that link private drivers and passengers across America, are now fully regulated in Arizona.
After serious debate and consideration, the Arizona legislature finally provided a bill that Governor Doug Ducey signed into law that provides a legal structure for ridesharing applications in Arizona.
The bill, signed last Thursday, requires Uber and Lyft drivers to have background checks and carry liability insurance. Arizona joins nine other states in establishing guidelines for ridesharing companies.
In all of the states and cities where Uber and Lyft have been operating, the issue of insurance has been a key battle.
While states seek to protect consumers, Uber and Lyft have been seeking to decrease regulation and minimize their costs.
When threatened by legislation that requires them or their drivers to carry licenses to operate, Uber has pulled their operations.
The Arizona bill, which contains a few restrictions, does not seem overly burdensome to Ubers operations.
Uber is trying to woo cities by offering to share its transit data with public officials who can use the data to make transportation decisions about public use.
Additionally, the company has endorsed a California bill that mandates insurance coverage that covers accidents when Uber drivers are carrying passengers and when they are not.
The California bill, which will go into effect this summer, resolves an issue called gap-coverage. Gap insurance coverage is used to describe that time period where an Uber or Lyft driver is working but is not carrying a passenger.
The insurance coverage by Uber and Lyft does not apply when there are no passengers in the car and the personal insurance policy does not apply if the driver is working. The new California bill is targeting that period where there is no insurance coverage.
Uber has adopted model insurance coverage legislation that they would like to see adopted in all states. The model legislation is based on Californias law.
It remains to be seen whether other state lawmakers will adopt similar insurance legislation to cover gap insurance issues.
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