ISO Introduces Personal Auto Coverage Options for Ridesharing Drivers

The two new coverage options address the times when drivers are logged in to the rideshare app but have not yet picked up a passenger.

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(Photo credit: Dirk Vorderstraße.)

ISO (Jersey City, N.J.) has introduced two new personal auto coverage options for ridesharing drivers, i.e., those participating in services provided by transportation network companies (TNCs) such as Uber, Lyft and Shuddle. The new options parallel provisions of the insurer/rideshare company TNC Insurance Compromise Model Bill by addressing the times when drivers are logged in to the rideshare app but have not yet picked up a passenger.

(Related: Insurer-TNC Compromise Paves Way for Rideshare Insurance Regulation)

One of the new coverage options would apply from the time the drivers log in to the TNC platform via a mobile device until they’ve accepted a ride request; the other would apply from when they log in to the TNC platform up until a passenger occupies their vehicle.

Alternative to Commercial Policy

Beth Fitzgerald, President, ISO Insurance Programs and Analytic Services.

Beth Fitzgerald, President, ISO Insurance Programs and Analytic Services.

“Personal insurers may want to provide coverage options to ridesharing drivers without requiring them to buy a commercial auto policy,” comments Beth Fitzgerald, president, ISO Insurance Programs and Analytic Services. “Our new endorsements will allow insurers to easily add ride-sharing coverage for TNC drivers to their customers’ personal auto policies.”

ISO reports that it recently began filing the new endorsements on a multistate basis, along with rating rules and relativities for insurers to help price the two coverage options under a personal auto policy.

“As ridesharing is still a relatively new issue in insurance, it may be difficult for carriers to identify and rate the risks of ridesharing drivers,” remarks Patrick Woods, VP, Actuarial Products and Operations, ISO. “Our rating tools are designed to help them offer coverage that specifically addresses each driver’s individual risk profile.”

(Related: New ISO Analytic Tool Measures Geographic Factors of Personal Auto risks)

 

 

 

Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For over a decade he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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