Providing a new level of confidence for customers who work as rideshare drivers
State Farm™ Introduces Transportation Network Company Driver Coverage in 14 Additional States and D.C.
State Farm is introducing a new coverage endorsement in several states 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 20, 2017, State Farm will offer a Transportation Network Company Driver Coverage endorsement in several states, including Arizona, Florida, Kansas, Michigan, Missouri, Montana, New Hampshire, New Jersey, New Mexico, Pennsylvania, South Carolina, Texas, Utah, Virginia and Washington, D.C.
The effective date for new and renewal for these states is March 20, 2017.
Twenty-three jurisdictions obtained the endorsement in 2016: Alabama, California, Colorado, Connecticut, Delaware, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, Maine, Minnesota, Mississippi, North Dakota, Nebraska, Ohio, Oklahoma, Oregon, Tennessee, Washington, West Virginia and Wisconsin.
"Adapting and innovating to our customers' changing needs is critical," said Vicki Harper, State Farm Public Affairs Specialist. "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 may provide high liability coverage limits 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 that person up. But TNCs tend to 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 not be providing coverage for injuries to the driver or coverage for any damage to the driver's personal car.
The new, optional State Farm TNC Driver Coverage endorsement 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 carried on his/her auto policy during the period of time when the driver is available for hire, and provides the driver with all other coverages applicable to his/her auto policy during all periods of TNC driving.
Customers in these states who drive for a TNC should contact their local State Farm agent to learn more about the new State Farm TNC Driver Coverage endorsement.
(Individual State Graphics Available for Download Below)
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