GEICO is entering the Texas insurance market with its ridesharing policy that covers drivers on and off the job, part of a state-by-state rollout that will eventually go national.
The auto insurer and subsidiary of the Warren Buffett-owned Berkshire Hathway Inc. launched its ridesharing coverage in Virginia and Maryland earlier this year. GEICO’s policy is also offered in Georgia.
Offered through GEICO Commercial, the policy is targeted for individuals who drive personal autos also used for ridesharing companies such as Uber, Lyft and Sidecar. GEICO asserts that the coverage costs less than taxi and commercial rates. It also kicks in with or without ridesharing passengers.
As designed, the GEICO policy is a hybrid policy with both personal auto and commercial auto components. There are some mile restrictions, GEICO noted on its web site, and the policy won’t cover high occupancy vehicles such as large vans or buses.
Eventually, GEICO wants to roll out its ridesharing insurance policy across the country, CEO Tony Nicely told Fox Business News earlier this year.
Ridesharing insurance is increasingly gaining carriers’ attention as states outline regulations for the increasingly popular ridesharing services. Many of those regulations require drivers to have more than personal auto insurance because they are transporting passengers, Robert Miller, GEICO senior vice president, noted in prepared remarks.
In May, Farmers Insurance became the first large California insurer to start offering a ridesharing insurance product there. USAA is also testing ridesharing insurance coverage in Colorado, as is Farmers.
Source: GEICO