When ride-sharing first sprung onto the scene, insurance became an immediate concern. Anyone familiar with the personal auto policy knew that such activity was excluded. Many individuals were not aware of this, and started driving for transportation network companies not realizing that in the event of an accident they may not be covered. While the rideshare companies provided coverage when the driver had a passenger, there was no coverage for the gap period when the driver was driving around waiting for someone to hire him for a ride or when he was on his way to pick up a passenger.
Companies have changed their policies to make the exclusion even clearer. While commercial policies are available, they aren't exactly tailored to the individual doing gig work on the side or even full time.
Mobilitas Insurance is a company that has done just that. Recently we had a discussion with Eric Ummel, General Manager of Mobilitas and Emily Tobler, Marketing Leader of Mobilitas. Mobilitas is a wholly owned subsidiary of CSAA Insurance Group, a AAA insurer. Mobilitas announced that beginning October 1 it will provide ride-sharing commercial insurance coverage for Lyft in the following 11 states:
Colorado, Idaho, Montana, Minnesota, Nebraska, North Dakota, Oregon, South Dakota, Wisconsin, Washington and Wyoming.
Two different types of coverage will be provided. One for Lyft that will provide coverage for all individuals driving for Lyft on a commercial policy, and another policy for individuals that will provide the individual's basic auto coverage needs as well as provide coverage while the insured is driving for a rideshare. So far this policy is only available in Colorado.
The personal policy is designed to provide coverage for individual drivers for all their auto insurance needs, both as an individual and as a rideshare driver. A unique feature is Downtime Protection, which provides $100 per day for 14 days if the individual cannot work because the vehicle was damaged in an accident. In order to prevent fraud, the company looks at past data from the rideshare company to verify that the person had been driving for the company in the recent past.
The policy is based off of the ISO commercial auto policy, and provides coverage not only for ridesharing but also for delivery services as well, so those driving for DoorDash, Uber Eats, or any other delivery service are covered as well. This policy makes it easy for an individual to have an auto policy that fits all their auto needs.
The company hopes to expand into coverage for last mile delivery, and is keeping an eye on emerging risks and how to supply those coverage needs as well. Autonomous vehicles present an enormous insurance issue, and vehicle sharing and home sharing are other developing gig economies with insurance concerns. The use of drones is developing rapidly, and insurance concerns will arise in that area as well. The company wants to make insurance as easy and accessible as possible for the insureds and can be purchased online or through their app.
The Live Help option allows insureds to not only file claims, but also to discuss coverages and billing, and have any questions answered. Mobilitas wants to design the product around the customer's needs.
Available limits for individuals are 50/100/50. The corporate Lyft policy has limits of $1 million, which is standard for ridesharing companies. Having just started offering coverages October 1 the company is already seeing quote completions of 85-90%.