(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.
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
“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.”