Farmers Insurance to cover rideshare drivers between faresReprints
Farmers Insurance Group of Cos. has rolled out a rideshare drivers coverage endorsement in Colorado that addresses the state's new insurance requirements for rideshare services.
Colorado's S.B. 125, which was signed into law in June and authorizes ridesharing services such as Uber Technologies and Lyft Inc., requires rideshare drivers to maintain insurance coverage for the period of time between the driver activating a ridesharing app and picking up a passenger.
Farmers' endorsement provides coverage for that period, the insurer said Thursday in a statement. Farmers said coverage will continue between rides and ride requests until the driver logs off the application.
Farmers' rideshare endorsement, however, does not provide coverage after a passenger is accepted or when a paying customer enters the car, Farmers said.
S.B. 125 says the ridesharing services, classified as transportation network companies under the bill, are required to provide insurance once a passenger is picked up until drop-off, according to the statement.
Farmers' policy will be available Feb. 16, according to the statement.
On average, the endorsement will add an additional 25% to a customer's premium, Farmers said in the statement.