Uber passed an insurance law in California. It did not disclose key info, a lawmaker says

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Uber misled California lawmakers last year before they passed an insurance-related bill, a consumer advocacy group alleges, prompting one of the lawmakers to question the company’s interactions with the insurance committee in the Assembly.

As the ride-hailing giant pushed to lower the required insurance coverage it must carry for uninsured and underinsured motorists, Uber told lawmakers that passing Senate Bill 371 would be good for consumers because insurance costs were rising. It passed, reducing Uber’s liability for uninsured and underinsured motorists from $1 million to $60,000 per person and $300,000 per incident.

But a May report from Consumer Watchdog found that the company mostly self-insures, meaning it was paying its own subsidiary insurer and amassing a stockpile of tax-free reserves.

Uber spokesperson Zahid Arab denied that the company misled lawmakers during the legislative process, saying they were “fully aware that the state’s rideshare insurance requirements were uniquely expensive and driving up costs for riders and drivers.”

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