Los Angeles-based insurance giant Farmers Insurance said it is now offering rideshare coverage for ride-hailing drivers in Ohio, Oklahoma, Arizona, Minnesota, Nevada, Texas and Wisconsin.
Farmers said it collaborated with representatives of each state’s department of insurance and commerce, as well as legislators and leaders of transportation network companies, to develop insurance specifically for ride-hailing drivers. The coverage was made available as specified in each state’s new ride-hailing law, the company said.
"We recognize that consumer needs are continuing to evolve and our ability to provide this important coverage to customers is a further demonstration of our commitment to meeting changing consumer demands," said Mariel Devesa, head of product innovation for Farmers.
State law changes
New laws in each of these states require ride-hailing drivers to have insurance coverage from the moment they turn on their rideshare app. The introduction of this coverage was designed to fill a potential gap in coverage, because personal Auto policies were not designed to provide ride-hailing drivers with coverage while they are working, Farmers said
Farmers said its rideshare customers can be covered once a driver turns on the ride-hailing application and during the time the driver is awaiting a match. The rideshare coverage will extend a driver's Farmers Auto insurance coverage until they accept a ride, at which point their transportation network company affiliate's commercial insurance coverage would apply.
Farmers said the additional coverage provided its rideshare endorsement will generally add about $15 a month to a customer's premium.
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Trudy Knockless
Trudy Knockless is a reporter on ALM Media's Business of Law desk. She has a background serving legal and insurance publications. Contact her at [email protected] or on LinkedIn at Trudy Knockless.
