Farmers Insurance has launched its rideshare insurance coverage for drivers associated with ridesharing companies such as Uber and Lyft. The insurer has launched the product in other states, as well.
Rideshare Insurance Coverage was developed by Farmers to provide coverage options to ride-hail drivers, said company head of product innovation Mariel Devesa.
The insurer worked with representatives of the Tennessee Department of Commerce and Insurance, legislators, and the heads of major ridesharing companies to help create a product that is not only designed for ride-hailing drivers but also conforms to the state’s ride-hailing law, which calls for a specific type of coverage.
Under the new legislation, ride-hailing drivers will be required to possess insurance coverage from the instance they turn on their respective ridesharing app. Personal automobile coverage does not typically offer coverage when ride-hailing drivers are at work, so the new product was designed to fill such a specific role.
Farmers’ Rideshare Insurance Coverage provides ride-hailing customers coverage whenever they start using their apps and during times when the drivers are waiting for a passenger match. The product will effectively extend a driver’s existing insurance coverage until he or she accepts a ride. Once a passenger match has been made, the rideshare company’s commercial insurance coverage takes over.
With Rideshare Insurance Coverage, drivers are free to select the coverage options that they need, like comprehensive and collision coverage, uninsured and underinsured motorist coverage, and coverage for medical fees. The coverage options and premiums available will vary according to the driver. Rideshare Insurance Coverage’s additional coverage will add about $15 to a driver’s premium.
