Tuesday, October 13, 2015

California Legislators approved ridesharing insurance for app-based driving jobs

The grey area of ridesharing app-based services have challenged state policymakers to weigh-in on insurance coverage, determining the best way to insure both ridesharing drivers and passengers. When compared to taxis/cabbies, ridesharing is relatively a new service with growing appeal. To date, there are over 1 million active Uber clients. Lyft is following close behind. Auto insurance protection is a debatable concern in California and in ensuing states allowing this type of service.

Insurance protection is the most important subject matter within the ridesharing spectrum. Get into a serious accident and this can ruin many lives. Ridesharing companies claim to offer $1 million coverage, but this hasn't been put to the test enough. No ridesharing company wants to exercise this $1 million coverage, because this probably means a death is involved and that is very bad for business.

All drivers know there are risk involved, especially with transporting passengers around daily. Ridesharing drivers can drive safely; however, another random driver may cause a serious accident. The more drivers are on the road, the likelihood they may become involved in an accident. According to insurance companies and law enforcement authorities, many accidents occur near home.

Therefore, ridesharing drivers go on the road a lot more than average drivers. They understand that safety plays a significant role in their driving habits. Once these specialty drivers get into an accident, deactivation is thus inevitable.

It makes perfect sense to implement new speciality insurance coverages to protect ridesharing drivers and their passengers. If app-based ridesharing services attempt to disregard an accident, then a secondary coverage, and in this new case - primary coverage, will protect all ridesharing parties. Performing ridesharing services shouldn't put a driver in a lifelong struggle post-accidents.

Congratulations to California State legislators for protecting the best interest of drivers and passengers.

Currently, MetroMile, Farmer's Insurance and now MetLife Auto and Home Insurance are providing ridesharing auto insurance coverage. Keep in mind the amount of coverage is based on owning a vehicle and/or leasing a car. According to a ridesharing driver obtaining ridesharing insurance via Farmer's Insurance, the insurance company advised him that this coverage is through their sister company and that leased cars must feature three times the coverage under the policy requirements.

Given this information, Uber's XChange Leasing Program is the most intelligent way to perform ridesharing services. Uber drivers can drive as much as they want without worrying about ruining personal vehicles. Lease a car and give this back in 3 years. If this vehicle is still in good shape after 3 years, make a deal to buy this vehicle. Essentially, a leased vehicle is on a lease-to-own contract.

Want to become an UberX driver? Drive with Uber? Click here to apply and then wait to lease and/or purchase a vehicle to perform ridesharing services. Have a current vehicle? Obtain auto insurance specific to ridesharing with MetroMile, Farmer's Insurance and/or MetLife. Contact these insurance companies for details on available coverage.