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The new ridesharing endorsement for Uber, Lyft and Sidecar drivers will be available through Farmers Specialty Insurance Company. The rideshare endorsement will be available for current Farmers Specialty customers and for new customers starting May 28, 2015. The underlying policy must have Bodily Injury (BI) limits of at least $50,000 per person/$100,000 per accident and Property Damage (PD) limits of $50,000 to qualify. 

The insurance gap happens because the ride services’ $1 million policies don’t kick in until a driver is en route to pick up a passenger (although some offer lower Period 1 coverage), while personal policies usually refuse to cover for-hire driving.

Ridesharing typically has three distinct periods:
Period 1: Driver has the App turned on and is waiting for a ride request.
Period 2: Driver has accepted a ride request and is enroute to pick up the passenger.
Period 3: Time between the pick-up and drop-off of the passenger.

A new California law, AB2293, which will take effect July 1, sets out minimum coverage for Period 1. For those who choose to purchase this coverage for Period 1, the endorsement will extend their existing underlying coverage from the time the driver turns on the app until the time they accept a ride request. The mileage driven during period 2 and 3 will not be counted into the estimated mileage.

The product we are offering is specific to "rideshare". In these instances the driver uses their car primarily for personal use. Period 1 adds additional risk and that is why we are providing the endorsement. When a driver accepts a ride, is en route to the rider and has a rider in the car, the TNC covers those circumstances. The law requires liability limits of 50/100/30. Our personal auto policy endorsement extends the existing coverage (includes Comp/Coll/UM if previously purchased) of the underlying policy. The endorsement covers our customer at their underlying limits through Period 1 only.

The new law mandates that the rideshare companies share their data with Farmers during a claim investigation. The rideshare companies have a detailed log on the rideshare activities. This will help claims during their investigation determine if the insured was involved in rideshare activity at the time of the accident. If the insured has the rideshare endorsement, the information from the rideshare companies will also help the claims team determine if the incident was in Period 1 2 or 3. Our insureds have a duty to cooperate in any claims investigations and also have an obligation to provide sworn (truthful) statements concerning the events of an accident.

Please click here to get free, no obligation quote. 

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Absolute Integrity Insurance Group
1434 Taraval St.
San Francisco, CA 94116
(888) 566-7771
CA License #:0D85546

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