At least one ride-sharing company, Lyft, is attempting to improve its insurance coverage for drivers and passengers. This action began after state regulators complained that there could be gaps in the insurance coverage, which ride-sharing companies are required to have in order to protect their passengers who are injured due to the negligence of drivers who participate in this type of service.

Lyft announced that it was giving drivers the option of obtaining collision insurance to repair damage to their vehicles and to obtain uninsured and underinsured coverage. However, it’s unclear as to whether or not these changes would address the serious questions that have been raised regarding the potential gaps in the insurance required by the California Public Utilities Commission for commercial drivers.

Also, these coverages only take effect when the damages exceed the limits which are not covered by the driver’s personal insurance policy. In light of the fact, that many drivers’ insurance policies would exclude coverage for a driver engaged in a commercial activity, these changes appear in adequate to protect passengers. Therefore, there continues to be significant concern regarding whether these ride-sharing companies are really in compliance with the regulations set by the California Public Utilities Commission and the Department of Insurance.