The ridesharing service company, Uber has made changes to their California drivers as they raised the minimum age requirement to 25-years-old. The change comes as the company said are necessary because of the rising costs of commercial auto insurance in the state.
The new rule applies only to drivers signing up to transport passengers with Uber’s ride platform, and not for those delivering food with Uber Eats.
Previously, the age requirement was set at 21 to enroll as a driver, and the age limit for deliveries was as young as 19.
Those under 25 who activated their accounts prior to Wednesday can continue to drive for Uber, the company added.
Insurance rates for Uber’s California drivers are significantly higher than for personal vehicles or taxi drivers, according to a company statement announcing the change.
“As a result of these lopsided requirements, personal injury attorneys have created a cottage industry specializing in suing rideshare platforms like ours, pushing Uber’s California state-mandated commercial insurance costs to rise by more than 65% in just two years,” the company said. “By increasing the age requirement for new drivers to 25, we hope to mitigate the growth of those costs.”
All 50 states require commercial insurance for drivers to earn money with a ride-hailing service. Uber maintains commercial auto insurance for drivers — including at least $1 million of liability coverage once a ride is accepted. Personal auto insurance typically doesn’t cover activity on ride-hailing apps.
Drivers under 25 trying to sign up as a driver for Uber will receive an email breaking down the new policy [changes] and providing a link with [more details].