Washington State Set to Adopt Ridesharing Insurance Law

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The popularity of rideshare services like Uber and Lyft is sweeping the nation, and the services have quickly become favorites over traditional cab services in certain cities throughout the United States. One of the biggest concerns with rideshares like Uber and Lyft is: who pays for damages in the event of an accident?

A new law that’s been proposed in Washington State will eliminate concerns over ridesharing insurance as it requires rideshare companies to carry a policy of at least $1 million per driver.

Senate Bill 5550

In mid-April 2015, the Washington State senate approved Senate Bill (SB) 5550 with a vote of 43 to 5. The bill, which was delivered to the Governor on April 23, 2015 and has yet to be signed, would require drivers of rideshare companies – called transportation network companies (TNG) per the bill’s language – to carry at least $1 million in liability coverage and uninsured motorist coverage when transporting a passenger.

The TNGs would also be responsible for providing drivers who are logged into the system but have yet to pick up a passenger insurance minimums as follows.

  • $100,000 in bodily injury coverage per accident
  • $30,000 in property damages coverage
  • $50,000 in bodily injury coverage per person

More Requirements Under the New Law

But insurance requirements aren’t the only thing that the new law would change. The law also would require rideshare companies to provide the following data.

  • Hours driven with passengers in the car
  • Total number of drivers
  • All accidents


What’s more, rideshare companies would no longer be allowed to require drivers to sign non-compete agreements. Both Uber and Lyft have told reporters that they are in support of the legislation, and are grateful to legislators for finding an innovative way to address concerns while also allowing the industry to thrive.

As mentioned above, the bill was passed in the Senate on April 16. The Speaker of the House signed it on April 22. The bill was delivered to the governor’s desk on April 23 where it is currently pending a signature or a veto.

Rideshare Car Accident: What should I do?

When a rideshare car accident occurs, knowing who pays for damages and dealing with the insurance company can be stressful and confusing. Hopefully, this new law will help to clarify the conversation. If you’re involved in a car accident in a rideshare and have questions about your rights, your responsibilities, or what you’re entitled to financially, don’t hesitate to call an attorney. You can reach the lawyers at Max Meyers Law PLLC today by dialing 425-399-7000 now.

Max Meyers
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Max is a Kirkland personal injury attorney handling cases in Seattle, King County & surrounding in WA State.