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GEICO is continuing to expand the availability of its ridesharing insurance coverage, which provides insurance coverage to drivers for ridesharing services such as Uber, Lyft, Sidecar, and Carma. The two newest states for GEICO’s coverage are Connecticut and Ohio.
“Being close to New York City makes Connecticut a key market for rideshare drivers,” said Rick Hoagland, GEICO regional vice president.
New and existing drivers that have been approved to drive for Uber (UberX and UberXL), Lyft, Sidecar and other services in Ohio can also now get the insurance coverage through GEICO.
“Ohio has seen substantial growth in its rideshare market, and GEICO wants to make sure these drivers are properly insured,” said Don Robinson, GEICO regional vice president. “Our product eliminates coverage gaps for rideshare drivers and delivers a complete insurance solution at an affordable price along with GEICO’s outstanding customer service.”
“Because they use the same vehicle for personal use and to provide rides for a fee, rideshare drivers have unique insurance needs that go well beyond a traditional auto insurance policy,” said Othello Powell, director of GEICO commercial lines. “Our policyholders appreciate comprehensive coverage and peace of mind, which our new product can give them.”
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, Pennsylvania, and Texas.
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.
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.