Senate panel advances bill lowering Uber, Lyft insurance requirements before passenger pickup

Legislation to reduce the amount of liability insurance companies like Uber and Lyft must carry when their drivers accept a trip but haven’t yet picked up a rider just cleared its first Senate stop.

The bill (SB 632) advanced on a 6-3 vote, with no discussion by members of the Senate Banking and Insurance Committee.

St. Petersburg Republican Sen. Nick DiCeglie, the measure’s sponsor, explained the proposed changes but offered no personal comments.

SB 632 would revise landmark legislation former Republican lawmakers Jeff Brandes, Chris Sprowls and Jamie Grant passed in 2017 that created statewide regulations for rideshare companies operating in the Sunshine State.

It’s a potential cost-saver for the companies and their drivers, which have become even more ubiquitous in Florida and across the country since.

Currently, rideshares and their drivers must carry at least $1 million in coverage for death, bodily injury and property damage.

SB 632 would replace that with a new requirement for the “in-between” period after a driver and rider confirm a trip but before the passenger enters the vehicle.

It would match the existing insurance requirements imposed nine years ago for when drivers are logged into a rideshare app but not on a ride: $25,000 for property damage, $50,000 per person and $100,000 per incident for bodily injury, and personal injury protection (PIP) at Florida minimums, along with uninsured/underinsured motorist coverage.

The bill keeps the $1 million insurance requirement once a passenger is in the vehicle, along with PIP at limousine-level minimums.

It also allows the required coverage to be provided by the driver or vehicle owner, the rideshare company, or a combination of the two, and clarifies that if a driver’s policy lapses or fails to meet requirements, the rideshare company’s policy must step in from the first dollar and defend the claim.

Further, the measure updates proof-of-insurance provisions, requiring drivers to carry and provide coverage information after an accident and disclose whether they were logged on or engaged in a prearranged ride at the time.

The bill’s quiet advancement Wednesday suggests little interest in the proposed changes. But nearly 60 lobbyist registrations on the House version of the bill (HB 585), which awaits a hearing before the first of two committees to which it was referred, suggests otherwise.

Companies and organizations lobbying on the legislation include the Florida Chamber of Commerce, National Association of Mutual Insurance Companies, Personal Injury Federation of Florida, Florida Justice Association, Florida Insurance Council, Uber and Lyft, and roughly two dozen insurance and tech businesses.

Matthew Van Name, Senior Public Policy Manager for Lyft, signaled support for SB 632 at Wednesday’s meeting.

Jacksonville car accident lawyer Matthew Posgay urged the committee’s members to reject the proposed changes.

Rideshares and Florida reached a compromise with the 2017 bill that “has worked for Floridians for almost 10 years,” and it is unwise, he said, to lower liability coverage requirements for “one of the most dangerous times” for riders — when drivers are hurrying to pick them up.

“Once they pick you up, they’re driving better,” he said. “But it’s common sense that when they’re rushing, several cars rushing to pick somebody up, they’re going to be driving a bit more dangerously and negligently to get you. And to decrease the need for liability insurance during that dangerous time just doesn’t make sense. There’s no legitimate basis for it.”

Division of Elections records show DiCeglie received $12,500 from Lyft in November through his political committee. Fabricio received $10,000 from Lyft and $5,000 from Uber the same month.

Republican Sen. Jonathan Martin of Fort Myers and Democratic Sens. Rosalind Osgood of Tamarac and Barbara Sharief of Broward County voted against SB 632.