Farmers Insurance is introducing the company’s first rideshare coverage endorsement in Colorado.
The product is designed to provide drivers with the insurance coverage specified in Colorado’s new ridesharing law. Part of the new law includes a provision requiring rideshare drivers to maintain insurance coverage for the period when a driver is logged into a transportation network company smartphone app and available to provide rides for a fee but has not yet accepted a request from a passenger.
The new endorsement will provide coverage that meets the requirements of Colorado’s ridesharing law by providing rideshare drivers coverage from the time a driver becomes available to accept transportation requests by activating their app until the driver accepts a request to transport a paying passenger.
It will also provide coverage between rides and ride requests until the driver logs off of the TNC application. There is no coverage under the Farmers policy once a ride is accepted or when there are paying passengers in the car. TNCs are required by the new law to provide primary coverage from ride acceptance to drop-off.
The endorsement is available beginning Feb. 16. The additional coverage provided by the Rideshare Coverage endorsement will add, on average, an additional 25-percent to a customer’s premium, according to Farmers.
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