Los Angeles insurance carrier
Mercury Insurance announced this week that it is offering ride-hailing coverage to for-hire drivers in Arizona and Nevada.
The new coverage will provide drivers with Uber, Lyft and other transportation network companies with insurance that will bridge the gap between their personal auto insurance the coverage provided by their company.
Ride-hailing drivers have been left without coverage by their insurance companies because of gaps in the coverage. Mercury's ride-hailing coverage will fill the gaps and provide drivers with high quality insurance that will cover them throughout the entire drive cycle. This means that if drivers get into an accident in any portion of the drive cycle and are liable they will be covered.
"Many enjoy driving for companies like Uber and Lyft as a great way to earn a living or make extra cash because they can set their own hours, be their own bosses and meet new people," said Jim Reeves, Mercury's research and development group manager. "Many of them are unknowingly putting themselves and other drivers at risk, however, because they don't have adequate insurance coverage in the event they get into an accident when their app is on, but they haven't accepted a ride.
"Mercury wants to ensure these individuals are able to earn an honest living without having to worry about paying costly repair or medical bills out-of-pocket – and we'll be able to offer this peace of mind for as little as 20 cents a day."
The ride-hailing drive cycle is divided into three periods.
- Period 1: Drivers have turned on the ride-hailing app, but haven't accepted a fare.
- Period 2: Drivers have accepted a fare and are on their way to pick up the passenger(s).
- Period 3: Drivers are transporting passenger(s) to their destinations.
Mercury's ride-hailing insurance will extend drivers' personal auto policies from Period 1 through Period 3 of the drive cycle, allowing them to obtain coverage not provided by their ride-hailing companies. This means that if drivers get into an accident during any period of the drive cycle and have Mercury's ride-hailing insurance, they will have coverage above and beyond the coverage provided by their TNC. Mercury's ride-hailing insurance will also fix the insured's vehicle in a covered loss if those coverages had been purchased from Mercury.
"Mercury has been protecting drivers for more than 50 years. It's what we do. So, we're very excited to be one of the first companies to extend the coverage to ride-hailing drivers and protect not only them, but the drivers and families with which they come in contact on the road," said Reeves.
Coverage is also offered in California.
