Rideshare companies must provide insurance coverage for Oregon drivers and passengers starting January 1

A person organizes a trip with the public transport service Uber, which until January 1 did not have to take out personal protection insurance. A new law changes this, coming into force in 2022 and requiring drivers of these services and taxis to take out such insurance. Lyft already requires its drivers to have such policies in place.

Christina Belasco / OPB

From New Year’s Day, transport companies and taxis, also known as transport network companies (TNCs), will be required to provide personal insurance protection to drivers and passengers of the Oregon.

The bill that requires the new coverage, HB 2393, was introduced last January and promulgated in June.

TNCs are increasingly a part of people’s daily lives. In 2019, more than 10 million trips were made in Portland alone. But until now, Oregonians who have been in accidents while riding in a car coming from a taxi or services like Uber have had to wait until their case is concluded to recover their lost wages or have their medical bills paid.

This process could take years, according to Rob Dolton, a consumer protection lawyer at Clackamas.

But under the new legislation, people who depend on ridesharing services or taxis can rest assured that if something does happen, they can get the insurance they need.

Personal insurance protection provides medical coverage of at least $ 15,000 per person involved in the traffic accident. It also offers salary protection of up to $ 3,000 per month for a period of 52 weeks. This period is flexible and is not limited to one year after the accident. Salary coverage can be activated one to six years after the accident. Medical coverage is limited to two years after the accident.

Some ridesharing companies, like Uber, had taken advantage of a loophole that exempted them from providing personal insurance protection, Dolton said. Lyft, however, voluntarily provided it.

Oregon is one of the latest states to institute statewide law covering the Uber, Lyft and taxi industries, according to Dolton.

“It made absolutely no sense that carriers in the transportation network were exempt from this wonderful coverage that provides such a vital benefit to consumers in Oregon,” Dolton said.

“It is oversimplifying, but it is a bill that secures the lives of millennials.”


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Justin D. O'Neill