Blurring the line between private and commercial transportation by services like Uber, Lyft and Sidecar has its benefits, but it's also been mired by difficulties. One of those challenges has been getting the right type of insurance, since private drivers offering commercial services fall in between existing types of policies. But even the resolution to that problem is emerging.
According to BuzzFeed News, insurance giant Geico will begin offering a new type of policy for drivers operating through ride-hailing companies. The policy will offer coverage to such drivers both when they're operating privately and when they're transporting customers, and will be priced in between traditional private and commercial policies.
The new policy is reportedly being rolled out first in Virginia, where the commonwealth DMV has granted both Uber and Lyft temporary legal status set to expire on February 6. A visit to the Geico website with details entered for Richmond, VA, reveals a Ridesharing option on the drop-down menu for "Type of business use," as you can see from the screen cap above.
The coverage is expected to be offered next in Maryland, although other states may take longer. The bureaucracy in New York, for example, has proven particularly difficult to break through. Still, the offering of such a policy represents something of an about-face for Geico, which previously refused to cover ride-hail drivers and canceled existing policies of such customers.
According to BuzzFeed News, insurance giant Geico will begin offering a new type of policy for drivers operating through ride-hailing companies. The policy will offer coverage to such drivers both when they're operating privately and when they're transporting customers, and will be priced in between traditional private and commercial policies.
The new policy is reportedly being rolled out first in Virginia, where the commonwealth DMV has granted both Uber and Lyft temporary legal status set to expire on February 6. A visit to the Geico website with details entered for Richmond, VA, reveals a Ridesharing option on the drop-down menu for "Type of business use," as you can see from the screen cap above.
The coverage is expected to be offered next in Maryland, although other states may take longer. The bureaucracy in New York, for example, has proven particularly difficult to break through. Still, the offering of such a policy represents something of an about-face for Geico, which previously refused to cover ride-hail drivers and canceled existing policies of such customers.
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