Sandoval: Consumer could be in danger using ride-sharing companies

SPRINGFIELD –Senate Transportation Committee Chair State Senator Martin Sandoval (D-Chicago) and State Senator Karen McConnaughay (R-St. Charles), Republican Spokesperson for the Senate Transportation Committee, joined today to call for increased public awareness of for-profit ride-share programs.

“We are asking that the Illinois Department of Transportation, the State Police, the Secretary of State and the Illinois Commerce Commission issue a consumer advisory while we sort out the complications of appropriately regulating this new transportation option,” said Sandoval. “Consumers need to know that they could be in danger.”

“At a recent hearing we heard from insurance experts and representatives from the Department of Insurance who testified that customers, drivers, and pedestrians are potentially put in harm’s way because of a lack of sufficient insurance coverage by for-profit commercial ride-sharing companies like UberX, Lyft, and Sidecar,” said Sandoval. “Public safety is a bipartisan issue, and today we’re reaching across the aisle and coming together to make sure the public is safe”

The March 13 hearing, held in Chicago, was entitled, “Closing the Insurance Gap: Examining Insurance Practices of For-Profit Commercial Ride-Share Companies Operating in Illinois.” The committee concluded that customers and drivers fall into an insurance gap when they use for-profit ride-sharing services like UberX, Lyft, and Sidecar. Unfortunately, these for-profit ride-sharing companies did not fully cooperate during the hearing and refused to disclose details of their insurance policies.

According to McConnaughay and Sandoval, legislators have an obligation to ensure consumer protection and safety standards on our highways and roads, saying these companies need to provide more details about how they protect consumers and the public.

Sandoval and McConnaughay detailed the requirements that any legislation must meet so that the public can safely use these types of for-profit ride-share services. First, any legislative measure must ensure that these companies provide adequate commercial insurance that covers all drivers, riders and pedestrians. Additionally, background checks need to be conducted to make sure drivers do not have criminal records, and vehicles in use must be well maintained and regularly inspected.

Various legislative proposals remain under consideration.