Farmers Insurance: the first to offer rideshare insurance coverage in Arizona!
The History of Rideshare in Arizona.
But the paradise of ridesharing was always darkened by a cloud of... is it legal? Is it covered by my auto insurance? These were valid concerns, because there always was a question about "who is covering what" and "are folks driving around uninsured?" In many cases, and at certain times in the rideshare experience, drivers were indeed uninsured.
All that changed recently. First, in Arizona, under a bill signed into law by Governor Doug Ducey on April 9, 2015, "Transportation Network Companies" (or TNCs) came out of the shadows and were recognized as important parts of Arizona's economy. The bill, among other things, required companies like Uber and Lyft to provide minimum liability coverage from the moment the driver's app was turned on. That solved the legal problem of being uninsured.
The bill also paved the way for insurance companies to offer a solution to another major problem, that of being under-insured. So Farmers Insurance jumped at that opportunity, and almost immediately announced that they would offer an endorsement to their auto policy that would fill in the gaps left by the minimum coverage provided by rideshare companies in Period 1.
The Arizona Rideshare Period 1 Problem
So what's this "Period 1" problem?
Period 1 is when the rideshare driver is logged into the app, waiting to be matched to a ride, but has not yet been matched to a rider. Uber and Lyft cover LIABILITY ONLY during this period. And again, the liability is at very low minimums. (For instance, Uber is 50/100/25.)
There is NO COVERAGE for damage to your vehicle if you are declared to be at fault.
Sometimes a picture is worth a thousand words:
Farmers Insurance Extends Coverage In Period 1.
(But you should be aware that there are some higher deductibles and qualifications on Lyft and Uber policies during Periods 2 and 3, and no other insurance carrier at this time has coverage that covers you during those two periods. So read your Uber and Lyft policies carefully.)
In short, this means:
If you choose to purchase the optional Rideshare Coverage Endorsement, Farmers covers you during Period 1 (the time when you are waiting to be matched to a rider) with the same coverage levels that you currently have on your personal auto policy... including comprehensive and collision!
The specific language (again, as of January 19, 2016) includes this description:
"Optional Rideshare Coverage means an extension of those coverages displayed on your Declarations Page during the time period commencing when you and your car are available to receive requests for transportation through a digital network or similar connection used by a transportation network company, and ending when you and your car are engaged in a prearranged ride.... Prearranged Ride means a period of time that begins when a driver accepts a transportation request through a digital network or similar connection and continues while the driver transports the rider in a personal car, and ends when the rider departs from the personal car."
Our agency staff is friendly, and we know rideshare drivers personally. We're fans of this great service, and we want to help make sure everyone is covered while driving. Call us at (480) 940-0909.