Rideshare insurance is a must for Uber and Lyft drivers, but an oddball in the insurance world. It’s coverage that applies at times: specifically, when a driver has their program turned on, but hasn’t yet approved a ride or picked up a client. It’s also primarily meant for collision and comprehensive asserts, as Uber and Lyft already offer liability insurance. (We explain the intricacies of rideshare policy in more detail here, if you’re interested.)
The kicker is: When you’re buying rideshare insurance, you’re paying an additional premium for coverage that has limited reach during a limited period of time. It won’t include a lot to you insurance bill, considering that it generally costs between $10 and $30 per month. However, people that induce rideshare on occasion might find it irksome to cover another insurance product that they’re using.
Nationwide plans to offer rideshare insurance, so drivers only have to pay they’re actually driving.
These are the people Nationwide hopes to attract with its rideshare coverage. Nationwide’s program, which is set to roll out this year, will bill drivers that are rideshare to get their insurance on a pay-per-use basis. With this policy, drivers would turn their insurance program on when they begin their change — like an Uber or Lyft program — and switch it off whenever they’re. Then they’ll be billed a monthly premium based on the amount of driving hours they logged.
This plan isn’t particularly novel. There are a few insurance companies that exist and function in a way that is similar. Metromile, by way of instance, sets customers’ auto insurance rates. It aims to provide coverage at a lower cost for individuals that don’t drive and would prefer not to pay that’s sitting in the most of the time. Think: millennials.
Others insurance giants Progressive and State Farm have used driver tracking devices to offer discounts for good drivers. However, Nationwide is the first company that will implement tracking-based prices particularly for rideshare insurance.
Many companies offer safe discounts or mileage-based prices, but Nationwide is the first company to do so for drivers.
To do so, Nationwide is partnering with company Slice Labs, which offers “insurance cloud services” and &ldquo insurance products. ” (Translation: technologies to facilitate simpler, digital-based insurance.)
“This partnership exemplifies our commitment to innovation by leveraging technology to offer rideshare drivers with a flexible and comprehensive insurance product,” stated Teresa Scharn, Nationwide’s VP of product development.
The venture is new to rideshare, but only one more in an ever-growing collection of digital and app-based insurance offerings. As with the majority of these newfangled policies, we expect Nationwide’s plan to be much more suitable and cheaper for a select group of individuals rideshare drivers that are low-mileage. However, it wind up costing more for those that drive and need broader coverage or might be lacking in policy. To-date, that is apparently the standard for insurers that are tech-powered.
In Nationwide’s case ll need to wait till its rideshare insurance is launched by the company later this year to find out.
Additional reading on technologies and insurance:
Should You Choose a Digital Insurer?
Insurers Can See Your Social Media. Is It Time to Scrub Your Profiles?
What Happens When Smart Home Tech and Insurance Meet
Tesla Wants to Insure Its Drivers, and Will Double Down on Tracking Data to Do It
How Fitness Trackers Could Save You Money on Life Insurance
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