California Insurance Commissioner Dave Jones approved a new coverage option designed to address gaps in insurance coverage for drivers who work for Transportation Network Companies (TNCs), reports the San Diego Union-Tribune.

The new product, approved last week, is offered by Farmers Insurance Group and is called "Rideshare Endorsement" and is availble to all TNC (or rideshare company) drivers, regardless of which comapny they work for, for an 8% policy surcharge. The coverage allows rideshare drivers to extend their existing Farmers auto insurance to cover the period between when a driver is signed into a rideshare app and when they are matched with a passenger for pickup (known as "period one" in California law).

Currently, rideshare companies must insure drivers with $1 million policies during periods two and three -- when a driver matches with a customer and transports them. However, the companies are only required to offer minimum liability coverage during period one. That coverage may or may not cover collision damage, medical bills or uninsured motorists. Insurers typically exclude policy coverage altogether for drivers while they're using their own cars to pick up and drop off customers.