Uber and Lyft lawyers spoke against it because they want to limit coverage to only the time when their drivers are logged in with a passenger. They do NOT want to cover their drivers while they are logged in but don't have a customer. This makes economic sense. In that way the TNC's would save money on insurance premiums and wouldn't have their rates raised the next time one of their drivers kills a pedestrian while looking for a fare.
Taxi people spoke against the bill for several reasons:
- It drops coverage from $1,000,000 to $750,000.
- TNCs would not be covered if they pick up off the street or carry private customers.
- As to whether or not a driver was logged in when an accident occurred could be manipulated by either the driver or TNC companies like Uber & Lyft.
- Full-time commercial insurance is the only safe option for the public.
- The bill would codify "TNC" as a separate form of transportation than what already exists. It would create a new category of "charter party carriers" and pre-empt the court challenge of the CPUC's decision by the Taxi Paratransit Association of California (TPAC), which is already in the California court of Appeals.
