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.”

Google’s insurance play

To date, 14 insurance companies are working with Google on its recently launched auto insurance comparison site.

To date, 14 insurance companies are working with Google on its recently launched auto insurance comparison site.

Some insurance industry auto analysts are suggesting that the comparison site “may not be just about an additional revenue stream [for Google] – it could be about collecting more information on how the different insurance companies price the same risk”. This will allow Google to use that information in case it wishes to underwrite auto insurance in a future of shared, driverless vehicles, where some component risk may very well be included with the price of travel.

Insurance of drones

It is imperative that insurance carriers develop the products/endorsements required for what will likely become a greater part of mobility of goods.

Given that Canada is leading the way in permitting commercial drone usage and mandating that insurance protection be purchased, it is imperative that insurance carriers develop the products/endorsements required for what will likely become a greater part of mobility of goods.

In the US, State Farm has received exemptions to operate commercial drones for roof inspections to aid in assessments and claims.

Silicon Valley’s shake up of auto insurance?

In the future, UBI may be available through a smart phone app.

Insurance carriers are investing in usage based insurance (UBI) programs. In the future, UBI may be available through a smart phone app. This would have big implications on how UBI is used and what players will be involved. Can you say Google? Apple?

Drones in insurance: taking off (pun intended)

A number of insurers in the US have been using drones for claims related evaluations.

A number of insurers in the US have been using drones for claims related evaluations. Most recently, Allstate has indicated an interest in developing drones for reviewing catastrophic claims. Drones are particularly useful to “quickly inspect areas that are inaccessible by ground, speeding payments to customers”. A Property Drone Consortium (including insurance carriers, construction industry players and the Insurance Institute for Business and Home Safety) is participating in R&D and the establishment of regulations for the use of drones for both the insurance and construction industries. In insurance, drones have numerous claims and underwriting related applications.

Photo : Insurance Journal.