New Allstate coverage approved for Uber and Lyft drivers
News: 2016 Press Release
SACRAMENTO, Calif. — Insurance Commissioner Dave Jones announced today he has approved a new insurance product providing increased access to insurance coverage for people driving for Transportation Network Companies (TNCs), such as Uber and Lyft. The product, offered by Allstate Insurance, is available to drivers for all ride-hailing companies.
Beginning in April, TNC drivers will have the option to purchase the Allstate Ride for Hire endorsement for an estimated additional $15-$20 annually for improved insurance coverage during Period 1, while the app is activated and the driver is looking for a new fare.
"Insurers are responding positively to technology trends and the growing popularity of ride-hailing services," said Insurance Commissioner Dave Jones. "New coverage options are good for both consumers and the economy."
Commissioner Jones has encouraged insurers to develop auto insurance products for TNC drivers. Prior to the new coverage options, ride-hailing drivers were not typically covered by their personal private auto policy. Allstate's new coverage helps close that gap by providing drivers with access to coverage throughout the entire ride cycle. Previously, drivers were only covered by TNC commercial insurance once they accepted a ride.
"The ride-hailing economy continues to grow and our products evolve with our customers' potential needs," says Allstate Field Senior Vice President, Phil Telgenhoff. "We want to help ensure our customers can more confidently participate as TNC drivers."
Jones has been a leader in encouraging innovation in the insurance marketplace—most recently in response to the emerging sharing economy and the growing popularity of TNCs in California. Jones identified insurance coverage issues associated with the ride-hailing model, and issued a set of strong recommendations which were included in rules issued by the Public Utilities Commission and in AB 2293.
Commissioner Jones encouraged insurers to develop auto insurance products for TNC drivers and directed the Department of Insurance to begin accepting ride-hailing insurance product filings from insurers nine months before the new law went into effect. To date the department has approved eight insurance products covering TNCs.
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- Transportation Network Company services generally fall into three periods:
- Period 1: App open -waiting for a match.
- Period 2: Match accepted-but passenger not yet picked up (driver is on his/her way to pick up the passenger).
- Period 3: Passenger in the vehicle and until the passenger exits the vehicle.
- AB 2293:
- Provides that the driver's personal auto policy provides no coverage from the moment the ride-hailing app is turned on.
- Requires the TNC, the driver or some combination of the two to maintain primary liability insurance as follows:
- Period 1
- $50,000 for injury to a single person
- $100,000 for injury to multiple persons
- $30,000 for property damage
- Periods 2 and 3: $1 million
- TNCs must also maintain $200,000 in excess insurance during Period 1.
TNC Product Approval Chart: http://cdicms.insurance.ca.gov/01-consumers/105-type/82-TNC-Ridesharing/index.cfm
- Allstate media contact: Freddy Santos (916) 859-8615.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.