Inside The Industry: Is Ridesharing in Florida Legit?
Florida’s insurance regulators have determined that a ridesharing company’s automobile commercial liability policy meets state regulations, but legislative action is likely necessary to clarify whether that entitles the company to legally operate in the state. Ridesharing firm Uber has been at odds with the state of Florida since its arrival.
Uber, and its similarly operated competitor Lyft, allow smartphone users to digitally request rides from drivers who operate their own cars. Riders pay for the travel by credit card though the company’s app.While Uber considers itself a ridesharing and technology company, it has run into conflict with established taxicab and limousine services in local communities.
The Uber policy is written by James River Insurance, an excess and surplus lines insurer that is authorized to do business in Florida. According to the National Association of Insurance Commissioners, as of July 1, 2014, the insurer had a surplus of $166 million with direct written premiums of $118 million and an A.M Best Rating of A-.
However, after a series of stings deliberately set up by Palm Beach Country officials, Uber and six of its drivers have been fined more than $44,000. The Palm Beach Post reports the county conducted stings last week in Boca Raton and Delray Beach, issuing citations to Uber and its drivers for operating without proper permits, ID badges, decals and liability insurance. A spokesman for San Francisco-based Uber derided the citations as “an abuse of power and a deliberate attempt to protect an entrenched industry.”
Last year, lawmakers considered a bill that would have removed the ability of the state’s ten special transportation districts to discriminate or restrict the use of digital transportation services like Uber and Lyft.
So is it legal in Florida or not?
“Whether or not the policy, which combined with a personal auto policy of the driver, would provide the coverage necessary under the Florida Financial Responsibility Law must be determined by the DHSMV,” noted Florida Office of Insurance Regulation (OIR) Deputy Chief of Staff Monte Stevens.
The DHSMV, however, has let it be known that it would not weigh-in on that issue pending on any action by the state legislature, which is set to convene March 3.
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