by Josh Chetwynd
The Kansas insurance business is entering the ride-sharing market.
Farmers Insurance announced last week that it will offer the state’s first ride-share insurance coverage designed for drivers for companies like Lyft and Uber to seamlessly shift from personal coverage to greater liability protection after picking up passengers.
Before introducing this product, Farmers consulted with representatives for the Kansas Insurance Department, legislators and leaders of the transportation network companies, like Lyft and Uber, to make sure that the coverage conformed to Kansas’ new ride-hailing law and drivers’ needs.
Kansas requires that ride-hailing drivers have appropriate coverage from the moment they turn on their rideshare app.
Kerri Spielman, executive director of the Kansas Association of Insurance Agents, applauded this development and said she believes this is just the tip of the iceberg in the state for this market.
“This is a great example of the private market adapting to meet the needs of a changing economy,” Spielman said. “We expect to see several more market solutions pop up as the ride-sharing industry expands further into Kansas. Agents have been engaged from the start on how to address the insurance gap that previously existed in the ride-sharing market. The insurance solutions that are starting to emerge are indicative of the consumer demand that agents have been seeing for this type of coverage.”
