Erie Insurance Introduces Auto Rideshare Cover in Indiana, Illinois

November 19, 2014

Erie Insurance has launched auto insurance coverage to protect drivers who use ridesharing services like Uber and Lyft in two Midwestern states, eliminating confusion for ridesharing drivers over what’s covered and when.

Erie’s new coverage, currently available in Indiana and Illinois, gives the driver insurance coverage during every part of the trip: before, during and after the hired ride.

Erie said it saw a need and knows of no other insurance company that is offering a similar type of rideshare product.

With ridesharing apps, people summon private car owners to pick them up. But while ridesharing is becoming increasingly popular, it’s also controversial due to the lack of clarity around insurance coverage.

The new Erie Insurance coverage is available to people who put a “business use” designation on their personal car insurance policy.

“Business use” traditionally has covered people who use their personal cars for things like delivering pizza or flowers, but has historically excluded people who use their cars as taxis. Erie is removing that exclusion, so now if an automobile owner uses his car for a ridesharing service like Uber or Lyft, there’s no confusion over what’s covered and when. The driver/car owner is covered during every part of the trip.

The new Erie Insurance coverage will be made available in others states depending on consumer response, the company said. Coverage is subject to limitations and exclusions.

Erie Insurance Group, based in Erie, Pennsylvania, has more than 4.9 million policies in force and operates in 12 states and the District of Columbia.

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