The ride-hailing insurance policies are for drivers who work for transportation network companies (TNCs) such as Uber and Lyft.
"Many residents of Illinois and Oklahoma enjoy driving for companies like Uber and Lyft as a great way to earn a living or make extra cash because they can set their own hours, be their own bosses, and meet new people," said
Mercury Insurance research and development group manager Jim Reeves. "Many of them are unknowingly putting themselves and other drivers at risk, however, because they don't have adequate insurance coverage in the event they get into an accident when their app is on, but they haven't accepted a ride.”
The ride-hailing cycle, as illustrated by autorentalnews.com, is as follows:
- Period 1: Drivers have turned on their respective TNC app but have yet to accept a fare
- Period 2: Drivers have accepted a fare and are en route to pick up passengers
- Period 3: Drivers are transporting the passengers to their destinations
Previously, the first period was considered a “gray area” where neither a driver’s personal insurance nor his or her TNC-provided coverage would apply. Mercury’s product seeks to close this gap and ensure that drivers are ensured throughout the entire ride-hailing cycle. This means that regardless of the period TNC drivers get into an accident, and as long as they are insured by Mercury, they will have coverage beyond that provided by their respective companies.
Mercury’s ride-hailing insurance will also pay for vehicle repairs in a covered loss if those coverages have been purchased from the insurer.
"Mercury wants to ensure these individuals are able to earn an honest living without having to worry about paying costly repair or medical bills out-of-pocket — and we'll be able to offer this peace of mind for as little as 60 cents a day," Reeves remarked.
