New Ga. law changes insurance coverage required for rideshare services
SAVANNAH, Ga. (WTOC) - A new law has taken effect in Georgia that decreases the amount of insurance coverage rideshare companies have to carry, and it could affect your ability to get a ride.
When all is said and done with the new insurance regulations, Lateef Olubajo, who owns Savannah Taxi and a local rideshare service, believes that he will be able to hire more drivers, and in turn make transportation more available in the Coastal Empire.
Taxi and rideshare companies used to have to carry up to a million dollars of coverage for anyone injured in an accident. Under this new law, that number has dropped to $300,000.
Olubajo says that insurance used to be one of his biggest expenses. But now, it won’t be as much of a worry.
That frees up the money to hire more drivers which would expand the availability of transportation, and well as create jobs.
“It’s beyond what’s expected. So, it should make some changes in terms of companies providing more jobs for people, especially the taxi companies,” Olubajo said.
Olabju said he doesn’t believe that the reduced coverage is something for riders to worry about, saying that $300,000 is still well in the range of a full coverage policy.
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