A new form of insurance for Uber drivers has emerged, and brokers may finally be able to capitalize upon these policies as a business opportunity in the ride-sharing sector of the shared economy.
Since many UberX drivers rely on the service for income, innovators at Peers have developed car replacement insurance that can help operators maintain their standard of living in the event of a collision or auto malfunction.
“The income from ridesharing is unstable. It’s vulnerable,” Shelby Clark, the carrier’s executive director, told Forbes. “It can be taken away in an instant in an accident.”
The coverage, now limited to the San Francisco Bay Area, costs about $20 per month, according to Forbes. When enrollees need to send their car for repairs, they can borrow another one from Breeze, a flexible car leasing agency tailored to ride-sharing users, for a maximum of four weeks.
The coverage is accessible to any driver whose primary vehicle was compromised by an accident, fire, burglary or damages caused by an Uber passenger.
The protection not only allows drivers to continue earning income, but it ensures that they do so legally. Since ride-sharing apps require that drivers only use vehicles that are “in their own name,” rental cars cannot be used to pick up passengers. Keep Driving, on the other hand, provides a 2015 Prius C on a short-term lease – a condition that legally qualifies as being registered in the motorist’s name.
Although Peers’ website reassures potential clients that “we’ll provide insurance for you, at no addition cost to you,” it doesn’t clarify what that coverage entails.
Clark is optimistic for the future of insurance in the sharing economy. He has also developed Homesharing Liability Insurance, which protects users of home-sharing platforms such as Airbnb and HomeAway for US$36 a month.
That product not only protects against liability from guests’ injuries and damages, but also acts similar to Keep Driving in safeguarding future income potential. If a homeowner cannot lease out a residence due to repairs, it will provide up to 90 days of rental income or a maximum of $5,000.
