Customers working for TNCs like Uber and Lyft can drive with confidence.
State Farm® Introduces Transportation Network Company Driver Coverage
San Francisco, CA, January 19, 2016 – State Farm is introducing a new coverage endorsement in California to help fill insurance gaps for its policyholders who use their personal cars to provide rides for a Transportation Network Company (TNC), like Uber and Lyft. The TNC industry is rapidly changing the livery/taxi industry by using the latest mobile technology to facilitate rides for hire. With these new transportation services in the marketplace, drivers are exposed to new risks.
Insurance provided by TNCs may be limited in scope and coverage. Personal auto policies generally do not extend coverage to the use of personal cars as taxis or livery vehicles, including their use in TNC services.
To adapt to changing customer needs, beginning March 21, 2016, State Farm will offer a Transportation Network Company Driver Coverage endorsement in California.
"Adapting and innovating to our customers' changing needs is critical," said Tom Conley, State Farm Senior Vice President. "This new product is an example of our commitment to our customers and provides them coverage, and peace of mind, when they use their personal cars to provide TNC services."
TNCs in California provide $1 Million liability coverage while a paying passenger occupies the driver's vehicle or when the driver has been connected with a passenger and is on the way to pick up that person. However, TNCs provide a much lower limit of liability coverage when drivers are just available for hire and may not provide the drivers with any medical payments, comprehensive, or collision coverages at all. The TNCs may be providing no coverage for injuries to the driver and no coverage for any damage to the driver's personal car.
The new, optional State Farm TNC Driver Coverage endorsement (California) enables a policyholder to have his/her personal auto policy fill in the coverage gaps left by TNC-provided insurance. This cost-effective endorsement provides the driver with the full liability coverage limits(s) he has under his/her auto policy during the period of time when the driver is "available for hire." Additionally it provides the driver with all other coverages applicable to his/her auto policy during all periods of TNC driving.
California customers who drive for a TNC should contact their local State Farm agent to learn more about and see if they are eligible for this new State Farm TNC Driver Coverage endorsement.
For 100 years, the mission of State Farm has been and continues to be to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams. State Farm and its affiliates are the largest providers of auto and home insurance in the United States. Its more than 19,400 agents and approximately 53,400 employees serve over 87 million policies and accounts – which includes auto, fire, life, health, commercial policies and financial services accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 42 on the 2022 Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com.