The insurance industry marked a significant turning point in its efforts to properly cover drivers affiliated with ridesharing companies this week, as one of the United States’ largest auto carriers announced tailored coverage for Uber employees.
Allstate Corp. announced that it is planning to roll out ride-sharing insurance policies on a limited basis in a few states this year.
In Illinois, Colorado, Texas and Virginia, drivers will be able to carry personal auto insurance for as little as $15 to $20 per year.
The policy also addresses the critical “coverage gap” plaguing ridesharing companies, as the policy’s coverage extends to the time that drivers are signed onto the ride-sharing service but are awaiting a new passenger assignment.
Allstate joins a group of several other insurers that have attempted to enter this market, and iti s one of the largest alongside GEICO and Progressive.
The offerings come as many jurisdictions continue to crack down on ridesharing companies for providing what they deem inadequate insurance.
“There are three set periods of potential exposure,” explained Peter Kochenburger, a professor of insurance law at the University of Connecticut School of Law. “One, an Uber driver is going around hoping to get business. The second period is when he’s been contacted and is en route to pick up the passenger and going to the destination.”
The third period is the actual driving of the passenger. It is unclear what Uber Canada’s $5 million dollar coverage includes, since it considers the $5 million policy “highly confidential.”
In March, an Ontario Superior Court judge ruled that the tech firm had to disclose the details of that policy, which it has yet to do.
Many brokers hope that Allstate’s coverage will expand into Canada when it enters new markets in 2016. But as of right now,
Allstate Canada has gone on record to clarify that none of their policies protect Uber drivers by tweeting to one, “We do not insure commercial vehicles so we would not honour claims & likely void the policy for misrepresentation.”
