Gov. Jerry Brown has signed legislation requiring drivers in the burgeoning ride-sharing industry to carry more insurance, his office announced Wednesday.
The bill affects companies such as Uber and Lyft, which initially objected to legislation increasing insurance requirements for their drivers. The companies reversed course last month, announcing support for the bill after negotiations lowered the minimum cost of liability insurance they will have to carry to $200,000.
The regulation comes amid increasing popularity of services that allow people using a Web app to ferry passengers in their own cars for a fee.
“While AB 2293 is a consumer protection bill, it represents much more than that,” Assemblywoman Susan Bonilla, the Concord Democrat who carried the bill, said in a prepared statement. “This measure symbolizes business flexibility, consumer affordability, political compromise, and most importantly, what true public policy should be – a collective process for all stakeholders to contribute.”
Brown signed the measure, Assembly Bill 2293, without comment. It was one of 25 bill signings and three vetoes the Democratic governor’s office announced Wednesday.