State Farm recently introduced a new coverage endorsement for drivers who use their personal vehicles for a Transportation Network Company (TNC), such as Lyft or Uber, in five additional states to help fill insurance gaps in the industry.
The TNC industry is a rapidly growing and changing market that uses the latest mobile technology to facilitate rides for hire. With the modern ease, however, the new market exposes drivers to more risks for which they may not be covered. TNC insurance provided to drivers can be limited in what it offers and personal auto policies generally do not cover the use of personal cars as taxi or livery vehicles, including use in TNC services.
To adapt to the changing market and customer needs within it, State Farm will now offer a Transportation Network Company Driver Coverage endorsement in Arkansas, Maryland, Nevada, Vermont and Wyoming. State Farm endorsed 15 states earlier this year and 23 states in 2016.
“Adapting and innovating to our customers’ changing needs is critical,” State Farm Public Affairs Specialist Vicki Harper said. “This new product is an example of our commitment to our customers and provides them coverage, and peace of mind, when they use their personal cars to provide TNC services.”
State Farm said that its new, optional endorsement is cost-effective while providing quality coverage for policyholders that need to fill the gaps between their base insurance and the coverage that is provided by a TNC.