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Elgin looking at regulating ride-shares like Uber

Elgin looking at insurance, other requirements for ride-share services

Elgin will be considering strict regulations for ride-share companies such as Uber and others, a first in the suburbs and possibly in the country.

The city council is expected on Wednesday to discuss proposed regulations for the industry - which Elgin is dubbing "E-Hail" - that would mirror insurance and other requirements imposed on taxi companies.

E-Hail vehicles would be required to undergo yearly safety inspections to obtain license stickers from the city, which cost $50 when bought in April and $75 otherwise.

E-Hail vehicles also would be required to have fares negotiated ahead of trips, which is already customary with ride-share apps.

Most importantly, E-Hail vehicles would need to carry commercial vehicle liability insurance, just like taxi companies, City Manager Sean Stegall said. A minimum coverage of $250,000 would be required for injury or death to one person, and more for additional people.

The goal is to protect passengers, he said.

"If the taxicab companies have to carry these insurance requirements, then the new E-Hail companies should, too," he said.

Jennifer Mullin, spokeswoman for San Francisco-based Uber Technologies Inc., said she's not aware of any jurisdiction that mandates commercial insurance for ride-sharing. "This type of insurance provides no more protection for passengers than what Uber already provides and would seek to push part-time operators out of the market," she said.

The proposed Elgin ordinance would add red tape and costs to the service, "making it very difficult for Elgin riders and drivers to get all the benefits of UBERx," Mullin said, adding the company hopes to work with Elgin on a "smart regulatory framework."

Lyft didn't return an email request for comment.

Elgin police researched ordinances enacted in Chicago, Seattle, Boston and Minneapolis and concluded it wants to treat taxi and E-Hail companies the same, Elgin police Lt. Jeff Adam said.

"Not paying the overhead for commercial vehicle insurance is how (E-Hail companies) are keeping their overhead down, but it's what you need to be a cabdriver," Adam said. "You want to make sure the occupants are protected."

Gov. Pat Quinn vetoed a bill in August that would have required, among other things, commercial insurance for ride-share drivers.

Ride-share companies Uber, Lyft and Sidecar state on their websites that they provide insurance coverage of $1 million.

But that's different from requiring each vehicle owner to carry commercial vehicle liability insurance, Jaime Hjelm said. That insurance costs from $3,000 to $4,000 yearly per vehicle, said Hjelm, owner of A Taxicab Leasing Corp. in South Elgin.

Hjelm - who is running for a seat on the Elgin City Council - contacted the police department a few months ago asking it to regulate ride-share companies.

"I'm not saying we don't want (ride-share companies) here. I'm not saying we fear competition," she said. "This is life-safety issues."

Insurance issues have been difficult to sort out in some accidents involving E-Hail companies across the country, Adam said, and Elgin's proposed ordinance could avoid that.

In June, an Elgin cabdriver was killed on I-90 after she was rear-ended by a driver coming back from an UBERx ride.

"It's about safety," Elgin Police Chief Jeff Swoboda said. "The safety of the cars, the safety of the people who are driving them, and the safety of the people who are in the car."

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