With the proliferation of Uber, Lyft, and other ridesharing companies, individuals not taxi, limo, or livery services, are making up the bulk of drivers accepting passengers for rides through apps.
While all ridesharing services require proof of insurance from drivers and offer their own insurance plans to cover potential damage, drivers who exceed their personal insurance’s mileage limit are placed in a precarious position of raising their yearly limit and paying for a more expensive insurance plan, which can cut into the profits of those who use these services as a primary form of income.
To solve that problem, GEICO is currently offering a new type of insurance policy in Virginia designed specifically for ridesharing drivers.
According to Nancy Pierce, GEICO regional vice president, the product will offer ridesharing drivers a complete product so they do not have to worry about how to report a claim, and if they chose the coverage, whether their car will be fixed and whether they’ll have medical coverage.
This type of policy could become increasingly popular as the landscape changes from most individual drivers to a mix of individual and ridesharing drivers. Look for more insurance companies to offer similar policies in upcoming months to compete, and across more states.
