Farmers Insurance announced on Feb. 15 its new Rideshare Insurance Coverage product, designed for ride-hailing drivers, for the state of Nebraska.
Rideshare Insurance Coverage is the first product of its kind in Nebraska.
"As a leading provider of automobile insurance in the U.S. and a market leader in the ride-hailing insurance market, Farmers has developed this innovative Rideshare Insurance Coverage to offer Nebraska ride-hail drivers coverage options as part of their Farmers personal auto insurance policies," said Farmers Insurance head of product innovation Mariel Devesa. "We recognize that consumer needs are continuing to evolve and our ability to provide this important coverage to customers is a further demonstration of our commitment to meeting changing consumer demands."
To come up with the Rideshare Insurance Coverage product, Farmers cooperated with representatives of the Nebraska Department of Insurance, legislators, and leaders of Transportation Network Companies (TNCs). The product was designed with the state’s new ride-hailing law in mind.
Nebraska’s ride-hailing law requires that all ride-hailing drivers secure insurance from the moment they turn on their rideshare app. As personal automobile insurance policies were not typically designed to offer ride-hailing drivers with coverage while they work, Farmers’ product intends to fill this gap.
"The Department of Insurance is pleased to see the insurance industry moving forward with such innovative products that serve Nebraska's citizens and business community. Farmers has taken on an important initiative to address this new insurance need," remarked Director of the Nebraska Department of Insurance Bruce Ramge.
Farmers can offer its Rideshare Insurance Coverage the moment a driver turns on the app and is awaiting a match. Essentially, the product extends drivers’ coverage until they accept a ride.
The product will allow drivers to select coverage that suits their needs, such as comprehensive and collision coverage, uninsured/underinsured motorist coverage, and medical payments coverage.
