On Jan. 4,
Farmers Insurance announced the launch of its Rideshare Insurance Coverage products, designed specifically for ride-hailing drivers in Minnesota.
Farmers Insurance head of product innovation Mariel Devesa said that the insurer group is well-aware that consumer needs continue to evolve—such as the need for rideshare insurance, and that Farmers is committed to “meeting changing customer demands.”
The insurance product was the result of a collaborative effort between Farmers Insurance, representatives of the Minnesota Department of Commerce, legislators, and several leaders of Transportation Network Companies. The product was created with ride-hailing drivers in mind, providing insurance coverage that is amenable to Minnesota’s new ride-hailing law.
Under the new law, ride-hailing drivers will be obliged to have insurance coverage from the moment they start using their respective ridesharing app.
Prior to the introduction of the insurance product, ride-hailing drivers only had personal automobile insurance policies to rely on; the policies were not designed to provide drivers with adequate coverage while they were at work.
Starting Jan. 4, Farmers Insurance’s Rideshare Insurance Coverage would be offered whenever a driver turns on their respective app, or when a driver is awaiting a customer. The product will extend a driver’s auto insurance coverage until a ride has been accepted. Once a match with a passenger has been made, their TNC affiliate’s commercial insurance coverage applies.
The Rideshare Insurance Coverage product will allow drivers to select the coverage that suits them best. Coverage options include comprehensive and collisions coverage that can pay for damages to the vehicle, uninsured/underinsured motorist coverage, and medical payments coverage.
Although coverage choices and premiums will differ per customer, the product will—on average—add about $15 per month to a customer’s premium.
