Farmers Insurance has introduced a rideshare coverage endorsement in Colorado.
Farmers said that it developed the product to provide drivers with the insurance coverage specified in Colorado's new ridesharing law. Part of the new law includes a provision requiring rideshare drivers, such as those who drive for Uber or Lyft, to maintain insurance coverage for the period when a driver is logged into a transportation network company (“TNC”) application and available to provide rides for a fee but has not yet accepted a request from a passenger.
The company said that its new endorsement will provide coverage that meets the requirements of Colorado's ridesharing law by providing rideshare drivers coverage from the time a driver becomes available to accept transportation requests (by activating the app) until the driver accepts a request to transport a paying passenger. It also will provide coverage between rides and ride requests until the driver logs off of the TNC application.
There is no coverage under the Farmers policy once a ride is accepted or when there are paying passengers in the car, Farmers said. TNCs are required by the new Colorado law to provide primary coverage from ride acceptance to drop-off.
“As a leading provider of automobile insurance, Farmers has developed this innovative rideshare coverage endorsement to offer Colorado rideshare drivers seamless coverage as part of their personal auto insurance policies,” said Mariel Devesa, the head of product innovation for Farmers Insurance. “We realize that consumer needs are evolving and our ability to provide this important coverage to our customers demonstrates our commitment to meeting changing consumer demands.”
Available beginning February 16, the new rideshare coverage endorsement will be offered to new and existing customers, Farmers said.
The additional coverage provided by the endorsement will add, on average, an additional 25 percent to a customer's premium, according to the company.
“Farmers is leading the industry by being among the first to create a personal auto insurance offering specifically tailored to ridesharing drivers. This new offering demonstrates their commitment to addressing the needs of a growing marketplace and their willingness to embrace ridesharing as an important transportation option in cities across the nation. We are excited to share the news of this innovative product with our partner drivers,” said Will McCollum, the general manager of Uber Colorado.
Learn more: http://www.farmers.com/.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].