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<\/p>\n![](\"https:\/\/www.insurancejournal.com\/app\/uploads\/2015\/09\/ubercar.png\")
<\/div>\nUber raised the minimum age requirement for most of its new drivers in California to 25 on Thursday under rules the company said are necessary because of the rising costs of commercial auto insurance in the state.<\/p>\n
The new rule applies only to drivers signing up to transport passengers with Uber\u2019s ride-hailing platform, and not for those delivering food with Uber Eats. Previously, people as young as 21 could sign up to drive customers, and the age limit for deliveries was 19.<\/p>\n
Those under 25 who activated their accounts prior to Wednesday can continue to drive for Uber, the company said.<\/p>\n
Insurance rates for Uber\u2019s California drivers are significantly higher than for personal vehicles or taxi drivers, according to a company statement announcing the change.<\/p>\n
\u201cAs a result of these lopsided requirements, personal injury attorneys have created a cottage industry specializing in suing rideshare platforms like ours, pushing Uber\u2019s California state-mandated commercial insurance costs to rise by more than 65% in just two years,\u201d the company said. \u201cBy increasing the age requirement for new drivers to 25, we hope to mitigate the growth of those costs.\u201d<\/p>\n
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\u2019t cover activity on ride-hailing apps.<\/p>\n
The minimum age is already 25 for those driving for Lyft, Uber\u2019s main competitor.<\/p>\n
Starting Thursday, drivers under 25 trying to sign up with Uber will receive an email explaining the new policy and providing a link to more information.<\/p>\n
The new restriction coincides with a resurgence in passengers following a deep downturn due to the pandemic.<\/p>\n
Uber is now handling more rides than it did in 2019, raising the company\u2019s hopes that it may finally realize its long-term of goal of becoming consistently profitable.<\/p>\n
Realizing that objective has sharpened management\u2019s focus on cost control, a factor that may have contributed to the decision to drop 25-and-under drivers.<\/p>\n
Uber\u2019s food delivery service, which will continue to let that demographic work as drivers, accounts for one-third of the company\u2019s revenue.<\/p>\n
Uber hopes to work with state lawmakers and industry experts \u201cto discuss legislative and regulatory changes that will improve the experience for all California drivers,\u201d according to its statement.<\/p>\n
Topics<\/span> California<\/a> Personal Auto<\/a> Sharing Economy<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n