Ride sharing insurance

An increasing number of insurers are rolling out ride sharing policies.

An increasing number of insurers are rolling out ride sharing policies. With over 160,000 Uber drivers alone in the US, this emerging market presents interesting opportunities for those carriers who are interested in getting involved.

A brief overview of insurers and their offerings to this segment (many focus on Colorado as this state is one of the first to pass a rideshare insurance law):

Metromile: Using a Metronome device, the company tracks mileage and charges for miles driven. The carrier is targeting Uber drivers in California, Illinois and Washington. The Metromile policy is in force until a passenger is assigned and then, Uber coverage takes over.

Farmers: Offering ride sharing insurance in Colorado. “One of the unique benefits of the Farmers Rideshare endorsement is that it provides the same coverages a driver currently has in place and extends those benefits to customers during the Period 1 [seeking passenger]”… Coverage reverts back to ridesharing company when the driver picks up a rider. The endorsement will add, on average, an additional 25% to a customer’s premium”.

USAA: An endorsement to Colorado customers that covers ridesharing during the period of seeking a passenger. The additional premium: $6-8 / month.

MetLife: Offering Lyft drivers in Colorado that covers all periods of driving, even when a passenger is in the vehicle.

Geico: Beginning with the state of Virginia, Geico’s policy offers coverage during all driving phases. Pricing is expected to be somewhere between a personal and a commercial policy. The plan is to have a national rollout.

Erie: Ridesharing insurance offered to drivers in Illinois and Indiana. Coverage provided to those that have a “business use” endorsement on their personal auto policy. “Business-use policies cover people who use their personal car for things like delivering flowers, but historically it has excluded coverage for people who use their cars as taxis.”