One of the biggest issues facing ride-sharing services is insurance, with lawmakers still struggling to figure out the coverage levels drivers should carry, and with different ride-sharing companies using different standards when providing coverage for their drivers causing quite a confusion among insurance companies. That’s why various insurance providers have tried to come up with some kind of solution that would resolve the issues drivers face because there are many inconsistencies in terms of what their personal auto insurance covers and how they are protected by the insurance policy provided by the company they are working for.
The latest product that could help put an end to the insurance gap faced by ridesharing drivers was recently introduced by Geico, one of the leading auto insurance companies in the United States. Geico has announced that it has launched a new insurance product aimed at meeting insurance needs of ridesharing drivers, which will first be rolled out in Virginia, where it has already been approved by state authorities.
With this new product, people working for the likes of Uber, Lyft, Sidecar, or some other company providing ride-sharing services, will finally get to be protected by comprehensive insurance that will cover them at all times, regardless of whether they have a passenger in their personal cars or not.
“This product will offer ridesharing drivers a complete solution so they will never have to worry about how to report a claim, and if they chose the coverage, whether their car will be fixed and whether they’ll have medical coverage. Not only does the product provide full coverage at an affordable price, but also peace of mind,” said Nancy Pierce, Regional Vice President at Geico.
Basically, Geico’s product includes a specific type of coverage that combines a driver’s personal auto insurance policy and the policy provided by the ride-sharing company. It will cover ride-sharing drivers both when they are on the clock, which means after they have logged into their company’s smartphone app, and when they are off the clock, or not logged into the app.
This means that the driver is covered when they are on their way to pick up a passenger, and while transporting a passenger, but even when they are using their cars privately. This is a unique product that no other insurance company offers, and it addresses the biggest issue creating ambiguities in the insurance industry when it comes to insuring ridesharing drivers – how to combine personal and commercial insurance policies. Geico said that it will not be too expensive, and will cost less than the products offered to regular taxi drivers. For now, the product is only available in Virginia, but Geico expects it to be approved in Maryland, and some other states, pretty soon.