Transportation Network Company Lyft uses pink moustaches for its peer-to-peer car-sharing service. Photo via Wikimedia.
Peer-to-peer car-sharing service Lyft now offers additional insurance coverage for its drivers. Using an online platform, Lyft provides transportation services by connecting passengers with drivers using their personal vehicles.
These three new insurance policies cover collision, uninsured motorists and underinsured motorists, according to Lyft's website:
- Collision: contingent policy  $2,500 deductible and $50,000 maximum. This is suitable for drivers who have purchased collision coverage on their personal policy, says Lyft.
- Uninsured motorists: excess policy $1 million limit that covers drivers if hit by an uninsured motorist that is at fault.
- Underinsured motorists: excess policy $1 million limit covering drivers if hit by an underinsured motorist that is at fault.
"We created the $1,000,000 liability policy as excess over personal insurance and designed all these coverages to drop down and act as primary insurance in the case that someone's personal policy does not respond," according to the Lyft website.
In addition, Lyft has announced that it is part of the new Peer-to-Peer Rideshare Insurance Coalition. Lyft will be working with other Transportation Network Companies (TNCs), regulators and insurance providers to address how the insurance industry can help support the developing peer-to-peer market.
The California Public Utilities Commission (CPUC) is one of the regulator members of this coalition. It is participating as an observer to monitor the coalition’s progress and discuss the CPUC’s legal and regulatory requirements, says the CPUC.
“I’m happy to see this diverse set of participants come together to find a market solution that will enhance insurance for the TNCs,” said CPUC President Michael R. Peevey. “I will keep a close eye on this, and if there is an insurance gap that has been identified and confirmed, then I will propose regulations that could close the gap if the market has not stepped in to do so.”
With a mission to “build a foundation of insurance best practices, policies and information for peer-to-peer ridesharing,” says Lyft, the coalition will have its first meeting the last week of February. Members include other TNCs (Sidecar, Uber), insurance companies (Esurance, Farmers Insurance, Allstate Insurance) and the National Highway Traffic Safety Administration for the U.S. Department of Transportation.