Car insurance for Uber, Lyft and TNC drivers coming to California

allstategoodhandsStarting this week, Californians who choose to drive for a Transportation Network Company (TNC) have a new option for insurance. Allstate now offers optional coverage for the time drivers are logged into a TNC app but have not yet accepted a TNC assignment. Allstate’s Ride for Hire product also provides for potentially lower coverage deductibles in the event a qualifying driver’s vehicle is damaged in an accident when they are driving a TNC passenger. Allstate plans to bring the optional coverage to a number of states in 2016.

The Allstate Ride for Hire endorsement supports customers who use their personal vehicles to drive for qualifying TNCs. Allstate expects that, on average, a customer will pay roughly $15-$20 each year to add this optional coverage.

“We listened to our customers and we are now delivering an innovative solution that evolves our auto insurance product with today’s trends and does it at a price many drivers will be comfortable paying,” Phil Telgenhoff, Field Senior Vice President, Allstate Insurance Company, says. “Our goal is to provide our customers with a product that meets their unique needs and help them best use their hard-earned money to protect what matters most.”

Here’s how the new Allstate Ride for Hire endorsement works:

  • Helps fill some of the gaps in coverage that can arise between Allstate’s personal auto policy and the TNC’s commercial coverage.
  • Some TNCs may provide their drivers liability coverage when they are logged into the app but have not accepted an assignment from the TNC. Allstate’s endorsement can help fill the gap that arises when a customer’s personal auto policy liability coverage limits are greater than what’s provided by the TNC. During this period, the endorsement can also help fill gaps that might arise under certain other coverages, such as collision, comprehensive, and uninsured/underinsured motorist.
  • The deductible associated with collision/comprehensive coverages provided by the TNC when drivers have accepted an assignment or have a TNC passenger in the car may be higher than what some customers carry on their personal auto policy. Allstate’s Ride for Hire endorsement can help protect customers against these higher deductible costs when the TNC coverage deductible is higher than the driver’s personal auto policy deductible.
  • Allstate agency owners and representatives will be available to help customers understand coverage and identify potential solutions for their unique needs.