Business Insurance

Auto insurance offered for ride share drivers by USAA

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The insurer based in San Antonio has released a statement that said it would extend a driver’s existing policy.

USAA has now announced that it will be giving drivers for ride sharing programs, such as Uber and Lyft, the opportunity to extend their current auto insurance in order to protect them while they are with a fare.

This coverage would broaden the deductibles and the coverage for a nominal additional monthly fee.

According to the auto insurance company, the expanded coverage would cost an additional $6 to $8 on average. This will be available to Texas drivers at Uber, Lyft, and other ride share programs. At the time of the announcement of the coverage, it hasn’t become entirely clear, yet, wither or not the availability of this additional protection will be able to overcome one of the largest issues in the state, which caused Uber to consider withdrawal from its operations from San Antonio.

An ordinance in San Antonio requires auto insurance coverage for vehicle for hire drivers to exceed $1 million.

auto insuranceThis ordinance became effective on Sunday, after it had been delayed in order to allow San Antonio the opportunity to review the municipal regulations. At that time, Uber referred to the new ordinance as “one of the worst in the nation.” At the same time, supporters have responded by saying that this regulation has been put into place in order to ensure that the public will be safe.

USAA is a financial services and insurance company based in San Antonio. It released a statement that said that it was going to break away from what most other insurers are doing and will be providing this type of special coverage. The coverage will protect the drivers when they have not yet received their next fare assignment.

This will help to fill an important gap that exists for those drivers, as the current insurance policies from transportation-network companies sells commercial coverage that starts only once the passenger and driver have been matched through the ride share application. Therefore, before that match occurs, the driver does not have the protection or has only minimal liability auto insurance coverage.

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