GEICO is getting ready to expand availability of its ridesharing insurance product.
The insurance giant announced Wednesday that it would be rolling out its ridesharing coverage through GEICO Commercial in Connecticut, following recent success in Georgia, Virginia, Maryland, Texas and Pennsylvania.
New and existing drivers approved to work for Uber, Lyft, Sidecar and other transportation network companies are eligible for the product, which replaces the driver’s personal auto policy and provides coverage regardless of whether the driver is logged into the company’s app. The protection is significantly less expensive than what is available for taxi and other commercial drivers.
Rick Hoagland, GEICO regional vice president, said the product eliminates the coverage gaps an increasing number of regulatory bodies are focusing in on and hoping to eliminate. He also said the addition of Connecticut was key for the insurer.
“Being close to New York City makes Connecticut a key market for rideshare drivers,” Hoagland said.
GEICO launched its rideshare insurance product in February in Virginia, with confirmation quickly following in Maryland. At the time, company executives stressed the peace of mind the product provided to drivers in the embattled rideshare market.
Previously, Geico had refused to cover ride-sharing drivers and even canceled existing policies for such customers.
Coverage for TNC drivers has faced a steep uphill battle, seeking approval from regulators on a state by state basis. Many jurisdictions, including those in Kansas and Pennsylvania, have passed laws requiring complete insurance coverage on the part of ridesharing drivers.
Leading TNC operation Uber carries a company insurance policy through James River Insurance, but regulators have expressed concerns over the “gap” that occurs between a personal and commercial policy when a driver has turned on the company app but has not yet accepted a ride proposal.
