State Farm® Introduces Transportation Network Company Driver Coverage in Additional States

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 June 26, 2017, State Farm will offer a Transportation Network Company Driver Coverage endorsement in five additional states, Arkansas, Maryland, Nevada, Vermont and Wyoming.

The endorsement will be available starting June 26, 2017.

Earlier this year Arizona, Florida, Kansas, Michigan, Missouri, Montana, New Hampshire, New Jersey, New Mexico, Pennsylvania, South Carolina, Texas, Utah, Virginia and Washington, D.C. received the coverage endorsement, and 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.

This new, optional State Farm TNC Driver Coverage endorsement is cost-effective and provides an opportunity for our customers to obtain coverage that will fill the gaps between their base auto policy and the coverage provided by a TNC.

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)