The ride-service company Lyft on Wednesday announced it is offering additional insurance coverage to augment a $1 million excess liability policy mandated by the California Public Utilities Commission.
From the Lyft Blog:
(W)e have worked with leading insurance carriers to now provide additional insurance solutions for drivers on the Lyft platform. Today, we’re excited to be the first company to announce three additional excess coverages now live:
- Collision ($2,500 deductible and $50,000 maximum applicable to drivers who have purchased collision coverage on their personal policy)
- Uninsured motorists ($1M limit covering drivers if they are hit by an uninsured motorist that is at fault)
- Underinsured motorists ($1M limit covering drivers if they are hit by an underinsured motorist that is at fault)
Two weeks ago, Kara Cross, general counsel for the Personal Insurance Federation of California, told us the lack of uninsured and underinsured motorist coverage was one of the defects in TNC insurance. Cross said that drivers injured while on a TNC call could only draw on the TNC coverage if the TNC driver was judged to be at fault. Lyft's new insurance coverage seems intended to address that.
In addition to the new coverage, Lyft said it is taking part in a new group called the Peer-to-Peer Rideshare Insurance Coalition, which will address "how the insurance industry can continue evolving to support the growing peer-to-peer economy." Lyft said the group is made up of "transportation companies, regulators, insurance providers, and other stakeholders," as well as the CPUC. The first meeting is scheduled for this month.
Andrew Noyes, a spokesman for UberX, which has been luring Lyft drivers away with bonuses, said in an email that the company has offered uninsured/underinsured motorist coverage since December. He said while the company does not have collision coverage, "we have been addressing this in practice by reimbursing drivers if their own collision insurance denies, with no deductible."