At the same time the ride sharing firm Uber threatens to pull out of the city unless city regulations on issues like insurance coverage for drivers are not moderated, USAA is rolling out a pilot project for rideshare drivers, News Radio 1200 WOAI has learned.

So far, the plan is only being offered in Colorado, but if it comes here in the future, it would shake up the debate.

Uber says the city's requirement that the moms and students who drive their own private vehicles for Uber and other ride sharing firms have about a half million dollars in insurance liability coverage, roughly twice the coverage taxis have to have, is unfair, because Uber drivers are only carrying passengers for hire a fraction of the time they use their car, while Yellow Cab drivers use their cabs exclusively for transportation for hire.

USAA spokesman Jesse Mata says a pilot program, which will begin next month, extends a member's existing personal insurance policy to cover ride share situations, and costs only about $6 to $8 more per month. Uber drivers said they could not continue driving for the company, because the costs of $1 million in liability coverage would cost them $200 to $300 more a month, more than many of them make driving for Uber.

"We recognize that are members are participating in this type of activity, and we need to be where our members are," Mata told News Radio 1200 WOAI's Michael Board.

San Antonio based USAA has a branch office in Colorado Springs.

Mata says the way the Uber policy would work, as soon as a driver 'turns on the app,' which means they are available to pick up rides, the special rideshare insurance kicks in. After they actually pick up a passenger, the 'Rideshare Coverage' takes effect.

"When the app is off, your normal personal coverage applies," Mata said. "When you turn your app on, but you haven't received an assignment, that's when this gap protection would apply."

Because of the technical nature of Uber's business model, USAA would know exactly when an Uber driver is covered under 'gap protection' and when the driver is fully covered, for purposes of paying claims.

Uber is urging the city to allow drivers to carry 'gap coverage,' saying without moderation in the city's insurance coverage mandates, the firm can't continue to operate in the city because no drivers could afford to drive for it.

Uber, and other ride share firms like 'Lyft' and 'Sidecar' provide transportation for hire not through full time professional drivers, like a traditional cab, but by allowing individuals to use their own car to transport passengers for hire during times when they are off of work or school and have time to make some extra money.

Uber has outraged local cab drivers, who have complained that the ride sharing firms are not being held to the same standards as the taxi cab industry, but San Antonio City Council has agreed to let the firms operate, but currently they are subjected to insurance requirements that Uber finds impossible to work under.

In a letter to Council members this week, Uber warned that would a compromise, they will be forced to end operations in San Antonio.