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Recognizing the growing popularity of ridesharing, which has seen Uber go from zero revenue in 2009 to over $10 billion today, and the proliferation of a host of competitors, including Lyft, Sidecar, and Carma, automobile insurer GEICO is continuing to expand the availability of its ridesharing insurance coverage.
Real-time ridesharing that uses an automated system to match drivers and riders has in a few short years moved from a fringe mode of transportation to a powerful alternative that has taxi and car services up in arms. Along the way, it has required new forms of liability coverage that are different than those offered to both personal and commercial drives.
GEICO first entered the market in February in Virginia, and has been selling a ridesharing product in Georgia, Virginia, Maryland and Texas, and is now expanding its ridesharing offering to drivers in Pennsylvania.
Replaces the Personal Auto Policy
GEICO’s ridesharing product replaces the driver’s personal auto policy and provides coverage both for personal and ridesharing use.
The coverage is billed as a Hybrid Policy that regardless of whether the driver is driving for personal needs, or is picking up a paid rider, provides coverage for liability, property damage, bodily injury, first party coverage, collision coverage, comprehensive physical damage coverage, and medical payments.
New and existing drivers that have been approved to drive for Uber (UberX and UberXL), Lyft, Sidecar and other services in Pennsylvania can now get the insurance coverage.
“With the rapid growth of ridesharing and Transportation Network Companies in Pennsylvania, we are excited to introduce a product that is specifically designed to meet the needs of ridesharing consumers,” said Nancy Pierce, GEICO regional vice president. “Our product offers customers a complete insurance solution at an affordable price along with the outstanding customer service they can expect from GEICO.”
“Rideshare drivers have unique insurance needs that go well beyond a traditional auto insurance policy,” said Othello Powell, director of GEICO commercial lines. “We created this product as a low-cost solution that covers both personal and ridesharing use and other on-demand services.”
GEICO says it will offer the coverage through GEICO Commercial at a price significantly lower than taxi and commercial rates.
© 2015 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.