CA Department of Insurance approves ridesharing insurance option

MetLife Auto & Home now offers insurance that covers all three phases of ridesharing in California market

Insurance News

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By Lyle Adriano

California Lyft and Uber drivers now have a new ridesharing insurance option that covers for all three ridesharing periods and provides liability coverage with choices for additional coverage. The new options were approved by California Insurance Commissioner Dave Jones, and are available now.

"As demand for ridesharing services increases, making sure ridesharing drivers are able to obtain insurance to protect themselves, their passengers and pedestrians has been a top priority," said Jones.

"I want to acknowledge the leadership of MetLife Auto & Home in responding to our request that insurers develop products to fill ridesharing insurance coverage gaps."

MetLife Auto & Home was the carrier tapped to create a product that specifically catered to Lyft drivers (and by extension, other ridesharing service providers). The product covers all three stages of the ridesharing transaction—while the driver is waiting for a passenger to request a ride, while the driver is en route to pick up a passenger, and during the trip itself.

"MetLife Auto & Home is focused on adapting to new consumer needs in today's sharing economy," said Kishore Ponnavolu, president of MetLife Auto & Home.

"Using fewer resources by sharing existing ones can have a positive effect on our environment, as well as providing additional flexibility for consumers. The insurance we are announcing today helps to provide Lyft drivers in California with convenience and extra peace of mind. We'd like to thank Commissioner Jones and the staff of the Department for their hard work in helping to make this product available in the Golden State," he added.

Commissioner Jones has long encouraged carriers to develop auto insurance products for ridesharing companies. Indeed, he directed the Department of Insurance to accept insurance products designed for ridesharing services nine months before legislation took effect.

California is Lyft's birthplace and the state has long been a pioneer in embracing new industries like ridesharing. “We're encouraged by industry leaders like MetLife Auto & Home that have created products tailored specifically for drivers who want to share rides and are excited for the Lyft community to have access to this new option," remarked David Estrada, vice president of government relations for Lyft.

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