Ridesharing services look secure in MN after Uber strikes deal with insurers

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The future of ridesharing services in Minnesota looks a little more secure, following a deal struck between Uber and national insurance companies.

Uber had suggested it might have to withdraw from Minnesota as the state's House and Senate were drawing up strict insurance rules for rideshare drivers in the state.

An initial plan proposed in the Senate would have required all Uber drivers to have a $1 million commercial auto insurance policy in place to cover them from the moment they switch on their app.

This plan led Uber to hint at a possible exit from the state, citing cost concerns, but on Friday revealed it had struck a national deal with the insurance industry similar to the rules proposed by Minnesota's House, the Associated Press reports.

According to the Star Tribune, Uber has agreed to a deal that it will supply drivers with $50,000 in death and injury liability coverage, $100,000 in total coverage and $30,000 in property damage coverage for the period after they have switched on their app, but before they have accepted a fare.

Once they have accepted a fare and pick up the customer, this coverage jumps to $1.5 million.

The House had proposed similar rules, with one difference being that liability coverage be set at $1 million once the fare has been accepted and the passenger picked up, rather than $1.5 million.

The Star Tribune notes that the Senate proposal has been changed to reflect the deal and will be more closely aligned with the House's proposal. Both bills will go to the floor for discussion once lawmakers return from a two-week break.

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