A new carrier has joined the rideshare insurance market, offering coverage to Lyft drivers in 11 states. At the same time, ridesharing firm Lyft’s drivers now also have access to coverage from Allstate and Liberty Mutual in a handful of new states, including California and Texas.
Mobilitas Insurance, a new commercial insurance company targeting the sharing economy and the mobility sector, is providing ridesharing commercial insurance to Lyft drivers in 11 states. The partnership connects Lyft drivers to an all-in-one auto insurance policy that was built for rideshare drivers.
Mobilitas is based in Glendale, Ariz., and is a subsidiary of CSAA Insurance Exchange (the Exchange), which is the lead member of CSAA Insurance Group. It was assigned an ‘A’ rating by AM Best earlier this year and offers coverage to drivers whether they are working or not. Both personal and commercial coverages, subscription auto commercial coverage and on-demand insurance is available.
Drivers can quote, buy and manage policies via the Mobilitas website or app. Drivers can also get $100 per day for 14 days if they are unable to work because of damage to their car in an accident.
Mobilitas will offer coverage in Colorado, Idaho, Minnesota, Montana, Nebraska, North Dakota, Oregon, South Dakota, Washington, Wisconsin and Wyoming.
AM Best said the ratings of Mobilitas reflect the consolidated balance sheet strength of CSAA. Explicit support is provided to Mobilitas through its participation in an inter-company reinsurance program with the Exchange, Best noted.
Mobilitas began offering coverage for Lyft drivers on Oct. 1, 2020, and uses drivers’ Lyft driving data to help quote a policy.
Allstate and Liberty Mutual
Allstate Insurance Co. is also providing Lyft with commercial auto coverage in California, Iowa, Indiana, Kansas, Kentucky, Missouri, Ohio and West Virginia, effective October 1.
The policies, issued by North Light Specialty Insurance Co., a subsidiary of Allstate, are managed by Allstate Business Insurance. Coverage is provided throughout the cycle of a Lyft trip, from when a driver turns on the Lyft driver app, to pick up and trip completion. Riders are automatically protected by Allstate at no additional cost each time they get in the car with Lyft.
Coverages vary by state and during period of engagement and may include bodily injury and property damage liability, uninsured/underinsured motorist liability, and collision and comprehensive coverage, subject to policy terms, conditions and deductibles.
Typically, drivers using Lyft rely on protection from their personal auto insurance when they are offline or don’t have the app turned on. Some Allstate customers who drive using transportation network companies (TNC) have additional ridesharing coverage, such as Allstate’s Ride for Hire coverage, for certain coverages outside of their personal auto policy and TNC commercial coverage, the company said.
Additionally, Liberty Mutual Insurance will provide coverage for Lyft drivers throughout Arizona, Michigan, New Mexico, Texas and Utah. Under the program, Liberty Mutual provides specific coverages in the five states from the time a driver has their Lyft app on to app off.
According to Curtis Scott, vice president of Risk at Lyft, the rideshare company is broadening its insurance partnerships to build a panel of auto carriers that will allow the company to leverage their regional expertise and ensure Lyft has claims handling specifically built for ridesharing, as well as data driven risk mitigation and security for riders and drivers on the Lyft platform.
Lyft said it also plans to further integrate its risk management services with its carrier partners and bring insurance products to market.
*This story ran previously in our sister publication Insurance Journal.