Their names have become commonplace in media coverage during the past year. Transportation Network Companies (ridesharing/ridesourcing) like Uber and Lyft are changing the way people travel from place to place and have caused quite a bit of controversy because of that. From taxi companies to legislators, a lot of discussion has occurred about how best to proceed with these companies. Much has happened since last fall, and it appears that some of the more trying issues are finally being resolved.
Car Insurance Coverage Extends to Uber Drivers
Allstate recently announced that it would now offer additional coverage to drivers to help fill the protection gap for ride sharing services. For an additional $15-$20, Allstate customers who are also Uber or other TNC drivers, can receive coverage when they are en route to pick up new fares. Previously, these gap times between fares were not fully covered by ridesharing companies. Allstate’s Ride for Hire will also work to fill the holes between drivers’ individual coverage and TNC policies.
The coverage will first roll out this year in Illinois, Texas, Colorado, and Virginia before expanding to other states in 2016. Other car insurance companies have also stepped forward to fill this gap in the past few months, including Farmers and USAA.
What Does This Mean?
If you aren’t an Uber or other TNC driver, these steps forward may seem irrelevant. However, these changes are all exciting as they show how car insurance companies have adapted. At first, car insurance carriers were angry with their customers who were also Uber or Lyft drivers. Now, they have come around to find solutions that work with both parties. Considering the continuously changing nature of business, that is very good news for auto insurance customers. If car insurance companies are willing to protect and pave the way forward despite contention, then there is hope for resolving any other changes to come.
Photo credits (top image): Kārlis Dambrāns, Uber, Lyft, Lindsay Shaver