Farmers Insurance has introduced its new Rideshare Insurance Coverage endorsement designed to provide coverage options for ride-hailing drivers in Texas.
Farmers said it worked with representatives of the Texas Department of Insurance, legislators and leaders of transportation network companies (TNCs) to develop a product specifically designed for ride-hailing drivers and make available a type of insurance coverage specified in Texas’ new ride-hailing law.
Under the new Texas law, ride-hailing drivers will be required to have insurance coverage from the moment they turn on the rideshare app.
Since personal automobile insurance policies generally were not designed to provide ride-hailing drivers with coverage while they are working, the introduction of this new coverage will help to fill a potential gap in coverage.
The Farmers Rideshare Insurance Coverage can provide Farmers customers coverage when a driver turns on the ride-hailing application and during the time the driver is awaiting a match. The policy will extend a driver’s Farmers auto insurance coverage until they accept a ride, at which point their TNC affiliate’s commercial insurance coverage would apply.
Farmers Rideshare Insurance Coverage enables a driver to select the coverage that fits their needs; including comprehensive and collision coverage that can pay for damages to their own vehicle, uninsured/underinsured motorist coverage (in case they are hit by a driver who isn’t insured or is underinsured), and medical payments coverage.
While coverage choices and premiums will vary by individual, the additional coverage provided by the Farmers Rideshare Insurance Coverage endorsement will generally add approximately $15 per month to a customer’s premium.
Source: Farmers Insurance