American Family Insurance has introduced a new transportation network company insurance coverage in the state of Colorado, designed to meet the needs of customers who are independent contractors for transportation network companies such as Uber or Lyft.
These ridesharing services, which are becoming increasingly popular, match transportation network company drivers with passengers who have requested a ride through an app on a smartphone. The app uses GPS to detect the location of passengers and connects them with the closest available drivers.
The new endorsement will provide coverage from the time a driver logs into the transportation company network app, looking for a rider, until the driver accepts a request to transport a paying passenger. A driver’s personal auto policy does not provide coverage while conducting ridesharing activities, so this new endorsement extends coverage to the aforementioned period of time.
American Family is offering the coverage in the state of Colorado initially, to support a ridesharing law enacted in the state which requires these drivers and/or the transportation network company to have insurance coverage while conducting rideshare activities.
According to industry research, global ridesharing revenue is estimated to grow to $6.2 billion in 2020, a more than 600 percent increase from 2013. American Family coverage was designed to meet the need of a growing number of customers who want to participate in this activity, while adhering to new industry and insurance guidelines.
American Family Insurance is a nationwide mutual property/casualty insurance company. The company sells American Family-brand products, including auto, homeowners, life, business and farm/ranch insurance, through its exclusive agents in 19 states. American Family affiliates (The General, Homesite and AssureStart) also provide options for consumers who want to manage their insurance matters directly over the Internet or by phone.