State Farm is debuting a ridesharing coverage endorsement in California and Colorado, and promises a broader release for qualifying states in the months ahead.
“We strive to meet the needs of our customers and will continue to work with insurance departments across the country to bring this product to states that allow ridesharing companies to operate,” State Farm spokesperson Angela Thorpe told Carrier Management via email.
The property/casualty insurer plans to launch the product on March 21 in California and on Feb. 8 in Colorado. It’s designed to fill coverage gaps for drivers who use their personal autos to provide transportation for ridesharing, or transportation network companies, such as Uber and Lyft.
Why California and Colorado? Both states have been “at the forefront of enacting legislation requiring [ridesharing companies] to provide liability coverage,” Thorpe explained.
State Farm will use its optional endorsement in in both states to give drivers full liability coverage limits they have under their personal policy when available for hire. It also gives drivers all other coverages applicable to their auto policy during all periods of ridesharing driving.
At least 28 states have passed ridesharing regulations so far. Among insurers who have jumped in: Last year, USAA and Allstate also rolled out similar ridesharing coverage in Colorado. GEICO also started ridesharing coverage in Connecticut, Georgia, Maryland, Ohio, Pennsylvania, Texas and Virginia.
Last month, Farmers Insurance started offering rideshare insurance in Oklahoma and Ohio, a move that dovetails with new laws in both states dictating coverage for ridesharing drivers.
Thorpe said that State Farm wanted to take the needed time to develop its own ridesharing endorsement.
“We developed a product for our customers and released it to the market when it was ready,” she said.
Source: State Farm