Line of Business:
Georgia and New Jersey
April 11, 2016
Rideshare providers have gained popularity in dozens of U.S. cities over the past few years. Unlike taxis or limousines, rideshare drivers use their own personal vehicles to transport riders. Rideshare drivers typically use a smartphone application to find potential riders and accept a trip.
Rideshare drivers are legally required to have insurance coverage from the moment they turn on their app due to recent laws enacted in Georgia and New Jersey. Rideshare companies typically provide some level of insurance coverage during the time a driver has accepted a trip from the app until the driver has dropped the passenger off. However, when the app is on and the driver is seeking riders - referred to as Period 1 in the rideshare business — there may be only limited coverage from the Rideshare company and possibly no coverage under the driver's personal automobile policy.
On April 11, 2016, Farmers will be one of the first major carriers to begin offering a new Rideshare Endorsement with the launch of Farmers Smart Plan Auto (FSPA). With this endorsement, rideshare drivers can avoid a potential gap in coverage by extending their personal auto policy coverage when they are logged in and waiting for the next ride.
This new offering is not specific to a rideshare company - the endorsement can be purchased by drivers that work with any rideshare company. While coverage choices and premiums vary by individual, the additional coverage provided by the endorsement adds approximately $20 per month to a customer's premium. *
In order to qualify for this endorsement, the underlying Farmers auto policy must have:
For Georgia - Bodily Injury (Bl) limits of at least $50,000 per person/$100,000 per accident and Property Damage (PD) limits of $50,000
For New Jersey Bodily Injury (Bl) limits of at least $50,000 per person/$100,000 per accident and Property Damage (PD) limits of $25,000
*Based on Farmers Smart Plan Auto customer data between 9/1/2014 and 3/1 8/2016 for states where Farmers Rideshare is available as of 2/1 6/16.