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Los Angeles-based Farmers Insurance has launched Rideshare Insurance Coverage for ride-hailing drivers in Arkansas.

Farmers worked with representatives of the Arkansas Insurance Department, legislators and leaders of Transportation Network Companies (TNCs) to develop a product specifically designed to provide ride-hailing drivers with the insurance coverage specified in Arkansas’ new ridesharing law.

Under the state’s new law, Act 1267, ride hailing drivers will be required to have insurance coverage from the moment they turn on their rideshare app. Since personal automobile insurance policies were not designed to provide rideshare drivers with coverage while they are working, the introduction if this new coverage will help to fill a potential gap in coverage.

Farmers Rideshare will provide Farmers customers coverage during period 1, which begins once a driver turns on the ride-hailing application and is awaiting a match. The coverage will extend a driver’s Farmers auto insurance coverage until they accept a ride, at which point their TNC affiliate’s insurance coverage applies.

Farmers Rideshare enables a driver to select the coverages that fits their needs; including comprehensive and collision coverage that pay for damages to their own vehicle, uninsured/underinsured motorist coverage (in case they are hit by a driver who isn’t insured or is underinsured), and medical payments coverage.

Farmers Rideshare will provide customers period 1 coverage to drivers for any ride hailing company operating in the state. The additional coverage provided by the Rideshare Coverage endorsement will add approximately $15 per month to a customer’s premium.

Source: Farmers Insurance

Topics Agribusiness