Farmers Insurance has started offering rideshare insurance in Oklahoma and Ohio, a move that dovetails with new laws in both states dictating coverage for ridesharing drivers.
Farmers said it worked with insurance officials and legislators in both sates, as well as executives from transportation network companies, to develop coverage for ride-hailing drivers.
Both Oklahoma and Ohio now require ride-hailing drivers to have insurance coverage from the moment they turn on their ridesharing apps. The coverage extends drivers’ Farmers auto insurance coverage until they accept a ride, after which their transportation network company’s commercial insurance coverage would apply.
Farmers said its Rideshare Insurance Coverage will let drivers pick customized coverage, such as collision coverage that can pay for damages to their own vehicle, and uninsured/underinsured motorist coverage, in case they are hit by a driver who is uninsured or underinsured.
In both states, the additional coverage Farmers Rideshare Insurance Coverage endorsement provides adds approximately $15 per month to a customer’s premium, though coverage choices and premiums will vary by individual.
To date, 28 states have passed ridesharing regulations, guidelines that have enabled insurers to issue coverage in tandem with those laws.
Insurers made big advances into the ridesharing market in 2015. Among those who advanced: GEICO started rideshareing coverage in Connecticut, Georgia, Maryland, Ohio, Pennsylvania, Texas and Virginia; USAA launched pilot coverage in Colorado and Massachusetts; American Family Insurance launched coverage for transportation network companies in Colorado; Allstate began a “ride for hire endorsement for transportation network companies in Colorado, Illinois, Texas and Virginia.
Source: Farmers Insurance