Farmers Insurance has expanded its commercial auto insurance coverage for Uber drivers into 13 new markets.
In all, Farmers said the product is now available to drivers using the Uber App in 14 states and the District of Columbia. Uber driver coverage is now offered in these states: Pennsylvania, Georgia, Delaware, Hawaii, Indiana, Iowa, Kansas, Maryland, Missouri, Nebraska, North Dakota, South Dakota, Virginia, and West Virginia. Coverage in the new markets began December 31, 2019.
The move follows Liberty Mutual’s announcement in December that it would provide coverage for Uber drivers and passengers in New England, South Carolina and Puerto Rico as part of the company’s 2020 auto insurance programs. Beyond Puerto Rico, the rollout is in South Carolina, Massachusetts, Connecticut, Rhode Island, Vermont, New Hampshire and Maine.
The new insurers follow a decision by James River Group to drop Uber, its largest client, and cancel all Uber policies as of Dec. 31, 2019.
Sharon Fernandez, president of business insurance for Farmers, said that the company has developed “an innovative commercial auto insurance solution” for Uber drivers.
Generally, Transportation Network Company (TNC) drivers are required to have state-compliant auto insurance policies covering bodily injury liability, property damage and first party medical benefits, as required by law. Farmers said it will be providing these coverages to Uber and drivers using the Uber App through commercial auto insurance policies with Uber. Under the policies, coverage begins when a driver turns on their Uber App and applies through ride acceptance, rider pick-up, and trip completion.
Farmers noted it is not new to the ridesharing arena as it was one of the first insurers to offer an endorsement that extended some personal automobile insurance coverages to rideshare drivers while they were logged into their TNC’s smart phone application and waiting to be matched with a rider. Overall, the Farmers rideshare endorsement is now offered to drivers in 29 states.