Since Lyft’s launch a year and a half ago, the company has increased safety while using its service in three ways:
- Established background check and driving record standards that are more strict than taxis, limos and black cars.
- Used technology to create more accountability and trust through in-app feedback, ratings and photos as the only company to have these elements for both passengers and drivers.
- Pioneered the first-of-its-kind $1,000,000 excess liability policy in 2012.
The company announced their part in the newly formed Peer-to-Peer Rideshare Insurance Coalition on Wednesday. This working group of transportation companies, regulators, insurance providers, and other stakeholders have come together to address how the insurance industry can continue evolving to support the peer-to-peer economy. With the California Public Utilities Commission (CPUC) as a founding member, the coalition’s mission is to build a foundation of insurance best practices, policies, and information for P2P ridesharing. The group’s first meeting will take place this month.
In addition, Lyft’s been working with leading insurance carriers to provide additional insurance solutions for drivers on the Lyft platform. The company announced that three additional excess coverages are now available:
- Collision ($2,500 deductible and $50,000 maximum applicable to drivers who have purchased collision coverage on their personal policy)
- Uninsured motorists ($1M limit covering drivers if they are hit by an uninsured motorist that is at fault)
- Underinsured motorists ($1M limit covering drivers if they are hit by an underinsured motorist that is at fault)
In this new model where individuals still use their cars for personal reasons, Lyft’s needed to “push the insurance industry” to innovate quickly and create unique solutions. Therefore, the ride-sharing company has created a $1,000,000 liability policy as excess over personal insurance, and designed all these coverages to drop down and act as primary insurance in the case that someone’s personal policy does not respond.
Source: Lyft (Tumblr)