By John Paul Valdez

California Regulator (PUC) requires Ride-Sharing Insurance of UBER and others

Companies like Uber, Lyfte, and Sidecar all offer new world ride sharing services. Interestingly they are governed by the Public Utilities Commission, and are required to carry $1 Million Dollars in additional liability insurance coverage for passengers and the property and persons in other vehicles should any harm occur to them that exceeds the driver’s own policy, and is clearly noted as the service driver’s fault.

Passengers also aren’t covered if they suffer injuries caused by other drivers with policies that provide bare-bones coverage or who have no insurance at all. This is another reason I always advise people to carry uninsured, underinsured motorist insurance on their personal policies, as this applies to even the general population when they drive themselves to the grocery store. This type of coverage is extremely inexpensive, and saves untold lack of preparedness in an area of the country where many drivers often have no driver’s license to begin with and are therefore unable to purchase insurance even if they wanted.

Lastly, this additional liability coverage paid by firms like Uber, doesn’t cover the firm’s driver or the driver’s vehicle. Also, recently, an Uber driver was involved in an accident with a pedestrian when he was not on the clock, and the firm denies any involvement and the insurance coverage that would otherwise have come with that.


As cab companies, and others in this competitive market have to suddenly deal with these new fledgling companies that have made the better mousetrap at only two thirds the cost to the end user, many lawsuits are sure to follow. In the meantime, clients win big on their pocket books, and are at no more risk than having their spouse drive them to their destination. In fact, ride sharing drivers have better driving records than the vast majority of the public, which means it’s a safer way to get around.

When something is cheaper, safer, better, more luxurious, and more efficient… America wins. The growing pains and jealousies of competitors aren’t pretty, but in the end, this country will always come out ahead because we innovate more than any other country in the world.

What is WhatsApp? And why pay $19 Billion for it?

It’s a new application that allows you to send texts without paying your phone company. You’ll notice that phone companies offer “Text, Talk, and Internet” as a bundle. WhatsApp obliterates one third of that value on the phone company side. It is estimated that phone companies will lose $39 Billion in revenues from persons who move over to WhatsApp via FaceBook in the short term. Sounds like Mr Zuckerburg at FB got the purchase at less than half price. Smart guy.

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