Uber has highlighted the impact of New Jersey's stringent insurance requirements on rideshare companies, stating that these regulations lead to high operational costs. This announcement was made in an Uber report released on February 18.
According to Uber's website, Transportation Network Companies (TNCs) like Uber are required to maintain $1.5 million in liability and uninsured/underinsured motorist (UM/UIM) coverage in New Jersey. These amounts are significantly higher than those for personal vehicles, being 30 times and 50 times greater, respectively. Unlike taxis and limousines, which do not have a UM/UIM requirement, TNCs face increased litigation risks due to these high limits, resulting in elevated costs and fares.
PropertyCasualty360 reports that litigation abuse, often driven by third-party litigation funding, has led to increased insurance costs by encouraging more lawsuits and larger settlements. Between 2012 and 2019, annual court filings per capita rose by 10% in 19 states, with plaintiff verdicts increasing from 53% in 2010 to 64% in 2019. This rise in litigation activity, along with "nuclear verdicts" exceeding $10 million, pressures insurers to settle cases at higher amounts, consequently raising premiums for businesses and consumers.
New Jersey drivers incur some of the highest car insurance rates in the United States. According to Bankrate, the average annual premium for full coverage is $2,938—10% higher than the national average—while minimum coverage costs $1,272 per year, which is 59% more than the national average.
Uber describes itself as a global mobility platform offering ridesharing services alongside delivery and freight options. The company emphasizes its commitment to safety, innovation, and achieving full sustainability by the year 2040.