Tag Archives: Progressive

Ride Sharing Insurance

Uber, Lyft and other ride share drivers are being offered new insurance products. These products can cover both personal auto use and ride-sharing insurance.

State Farm is offering a ride sharing endorsement in Colorado.

Farmers has expanded their coverage to Arizona, Minnesota, Wisconsin, Nevada, Oklahoma, Ohio and Texas. Many of these states are seeing ride share coverage for the first time.

USAA has expanded their ride sharing insurance coverage options to California.

Metromile

Available for Uber drivers in Callifornia, Illinois and Washington Metromile offers per mile insurance. This means therefore that the more you drive, the more you pay. They give you a special dongle. You plug this into your car. It then tracks how far you travel.

This company has partnered with Uber to create a unique offering by tracking your car with their dongle. It matches up with your Uber rides. Metromile can thus see which rides are personal and which are business. The business miles are subtracted and you are then only charged for your personal miles.

The insurance company is only integrated with Uber. They therefore will only subtract trips accepted through the Uber app.

If you’re an Uber driver and live in California, Illinois or Washington, you can therefore use their website to get a quote.

Geico

Available in Virginia, Maryland, Texas, Georgia, Connecticut, Ohio and Pennsylvania.

Geico’s ride sharing insurance appears easy to understand. Their product is much cheaper than Geico’s other commercial auto insurance products.

Progressive

This product is available in Pennsylvania.

Their rates are close to a personal auto insurance policy. Progressive told the Post Gazette that the rates would be adjusted based on the mileage driver as a ride share driver. They did not however say how they would gather the data.

USAA

Available in California, Colorado and Texas.

Instead of coming up with an entirely new commercial insurance product, USAA’s ride sharing insurance extends your existing personal policy to the tune of $6 to $8 extra per month. This makes getting ride sharing insurance an easy and therefore cheap process for existing USAA customers.

Farmers

Available for all ride share drivers in Arkansas, Arizona, Colorado, Kansas, Minnesota, Ohio, Oklahoma, Texas, Utah and Wisconsin.

Their ride sharing insurance exists as an additional endorsement. This is on top of their personal auto insurance product. Farmer’s product will cover personal miles as well as the insurance gap. It will not however cover drivers while a passenger is in their car. Farmer’s ride share insurance product will cost drivers an additional 25% on their existing Farmers auto insurance coverage.

Allstate

Allstate has a product called Allstate Ride for Hire. Ride for Hire is an additional endorsement. This is on top of your normal Allstate auto insurance that specifically covers ride sharing. They estimate that it will thus add an additional $15 to $20 to your premium every month.

Innocent auto drivers

Innocent auto drivers unexpectedly pay higher premiums. However, the guilty driver expects to pay an increase in premiums.

The Consumer Federation of America sourced quotes from five auto auto insurers.  Drivers pay the most in  New York City and Baltimore  They pay even if innocent. In addition, higher income drivers  pay less penalties. However, middle income bracket drivers are charged heavy penalties. Furthermore, innocent auto drivers in Chicago and Kansas City faced penalties as well.

The insurance industry disputed the above conclusions. They stated that  drivers should not be compared because some drivers had no previous insurance, whilst other drivers had prior insurance.

The CFA discovered the following: –

* Progressive surcharge drivers aggressively using the not-at-fault penalty except in states which ban this practice.
* Geico and Farmers raise rates by ten per cent at times.
* Allstate penalise drivers occasionally.
* State Farm do not increase premiums for these no-fault accidents.

The CFA compared two female drivers in each city. They lived at the same address. Both were 30 years old. They had been licensed for 14 years. They drove a 2006 Toyota Camry clocking up 10, 000 miles per year.

The upper income driver was married. She owned a home. She worked as a bank executive with a Master’s degree. The middle-income driver worked as a bank teller. She was single and rented an apartment. The middle-income driver had earned a high school diploma.

In comparison, the following was revealed: –

* Higher-income drivers pay $78 on average after a no-fault accident.
* Middle-income drivers pay $208 more on average after a no-fault accident.
* Higher-income drivers pay a 6.6 per cent  penalty after a no-fault accident.
* Middle-income drivers pay 9.6 per cent penalty on average after a not-at-fault accident.

Robert Hunter, a CFA director said that drivers should not be penalised if someone else hit them.

In conclusion, the CFA asked state lawmakers to forbid penalties on innocent drivers.

California and Oklahoma have such regulations in place. The American Insurance Association says consumers should shop around when buying auto insurance.

Insuring Tow Trucks

Drivers of tow trucks engage in a world fraught with danger. When repossessing vehicles, they face angry drivers. The road conditions may be poor due to rain, snow and potholes. This results in dangerous driving. Circumstances which require the use of heavy equipment causes havoc and danger on US freeways.

Less and less insurance companies therefore are willing to write business for tow truckers. As a result the tow truck business is in a state of distress.

The American Transportation Insurance Group (ATIG) opened its doors in 2001. The president and CEO, Chip Thompson, stated that this speciality insurance is at its worse. Since 2001 ATIG has specialised in the higher risk transportation market. In particular, garage, towing, trucking and repossession market.

ATIG are losing one out of every four customers. Tow truck companies are closing down.

There is a constant increase in the costs of litigation and healthcare. Tow truck companies are facing these snags. Most of the U. S. commercial auto insurance market has faced difficulties in recent years.

This market has reflected underwriting losses for five consecutive years. According to Fitch ratings, it is the most under performing product segment in the U. S. property/casualty insurers market.

“It’s the perfect storm for garage and commercial auto in the last six months and I don’t see it letting up anytime soon,” Thompson said.

In September 2016, Progressive stopped writing insurance for the tow trucks. Others followed suit. Eight or nine carriers pulled out of this sector.

Reasons vary. Certain carriers made a profit and then pulled out. Other carriers lost money and thus exited. Some carriers decided they did not want this business any longer.

The industry was aware that Progressive is very technologically sharp. They understand the risks. For example, the rates per the ZIP code per the risk per street. Therefore most carriers felt that if Progressive does not forsee a profitable future in this sector, neither would they profit.

Progressive is upholding their duty to current policy holders. However, they are not writing new accounts. They expect to affect small changes to their current program. This will result in Progressive forging ahead once again in the new business arena.

Chip Thompson (ATIG) says that he has people putting cameras inside the trucks. They face outward and inward. Drivers eating or talking on the phone whilst driving are treated with zero tolerance.

He added that a focus must be put on driver training. In addition, he said, if you have insurance which is semi-affordable, protect it for all you are worth.