June 25, 2017

Insurers pitch extra coverage for Uber and Lyft drivers

Car insurance concept, hands holding car covered by umbrella
Copyright: pixelbliss / 123RF Stock Photo

Uber driver Dean Johnson waited for a customer outside South Station last year. Insurance companies know that many of their drivers are working for Uber and Lyft on the side but are keeping it on the down-low.

So they are rolling out insurance coverage designed specifically for ride-hailing drivers, hoping to draw them out of the shadows and into a policy.

For a higher price, of course.

Last week, Allstate Corp. introduced its Ride for Hire optional add-on coverage in Massachusetts. Mapfre Insurance, the state’s largest auto insurer, launched its expanded automobile policy for Uber, Lyft, and other ride-hail drivers earlier this month. USAA, an insurance company geared to military members and their families, has been offering coverage for such drivers in Massachusetts since last year. And several other companies, including Plymouth Rock, are planning to provide this type of insurance in the coming weeks.

The additional insurance typically covers the period when a driver has turned on the ride-hailing app and is waiting for a customer. Once the driver accepts a fare and picks the customer up, Uber and Lyft provide their own coverage.

The new policies typically cost under $100 a year, on top of the usual auto premium.Still, for insurance companies, […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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