Insurance has been an ongoing issue for rideshare drivers ever since I became a driver. Today, RSG contributor, John Ince, takes a look at a new insurance product from Farmers for drivers in California. Make sure you also check out our new rideshare insurance page that is in the works. We’re working on getting a list of recommended agents up too so if you know of any agents that you trust and recommend that offer rideshare friendly insurance products please let us know.
Sum and Substance: The new insurance is offered by Farmers as a supplement — called an endorsement — to drivers’ personal auto policies, and it will cost an additional 8 percent of their premium. A smaller insurer, MetroMile, already offers individual ride-service insurance, but it’s exclusive to Uber drivers. That insurance costs a base rate plus a per-mile charge. But now drivers for Lyft, Sidecar or any other TNC can buy insurance to cover what various stakeholders call Period 1. That’s the interval of time that drivers have their app open and are available to be matched with a customer, but have yet to accept the fare.
My Take: It was just a matter of time until major insurers stepped up to this opportunity. This potentially resolves a nettlesome issue for drivers: whether to come clean that you’re actually driving for Lyft or Uber with your insurance company. But it’s also adding yet another expense to your P & L. Even with insurance, rideshare drivers are taking a huge risk by driving on city streets. I’d love to see Uber’s and Lyft’s stats on just how many drivers have been in an accident. My guess is that it’s once of their most closely guarded secrets. [Read more…]