California Insurance Commissioner Dave Jones on Wednesday announced the approval of an insurance product from Farmers Insurance that could finally fill a gap in insurance coverage for drivers with companies such as UberX, Lyft and Sidecar.
The new product covers “Period One,” which begins when a driver turns on the on-demand transportation application and is awaiting a match from a transport network company (TNC).
Under the Public Utilities Commission’s original rules drafted in 2013, such companies were only required to insure their drivers when they were en route to pick up a passenger (Period Two), and when they were transporting a passenger (Period 3). There were no rules covering Period One, which left drivers and members of the public vulnerable.
Farmers Insurance’s latest product aims to give drivers the ability to cover themselves during Period One, at least until the commission’s new rules requiring TNC drivers to have coverage for that period come into effect July 1, after which either the drivers themselves or the TNCs will have to foot the bill for Period One insurance.
via www.latimes.com