Liability Insurance Required for Rideshare Drivers in Elgin, Illinois

The Elgin City Council in Illinois has approved rules that make it legal for Uber and other ride-hailing services to operate in the city.

The (Arlington Heights) Daily Herald reports the Elgin ordinance mirrors a state law taking effect today.

Ride-share drivers in Elgin must to carry auto liability insurance of at least $50,000 for death and personal injury per person. Companies such as Uber and Lyft will need to carry $1 million liability insurance covering the period from when drivers log into the companies’ networks until the transaction is completed.

Mayor David Kaptain says the rules give Elgin residents choices.

The ordinance was opposed by the largest local taxi company. Taxi driver Doreen Shaw says she and other drivers aren’t against competition, but want a level playing field.