DENVER, Feb. 1, 2016 /PRNewswire/ -- Beginning February 8, 2016, State Farm will offer customers a new endorsement in Colorado to help fill insurance gaps for policyholders who use their personal cars to provide rides for a Transportation Network Company (TNC), like Uber and Lyft.
The TNC industry is rapidly changing the livery/taxi industry by using the latest mobile technology to facilitate rides for hire. With these new transportation services in the marketplace, drivers are exposed to new risks.
Insurance provided by TNCs may be limited in scope and coverage. Personal auto policies generally do not extend coverage to the use of personal cars as taxis or livery vehicles, including their use in TNC services.
The new, optional State Farm TNC Driver Coverage endorsement in Colorado enables a policyholder to have his or her personal auto policy fill in the coverage gaps left by TNC-provided insurance. This cost-effective endorsement provides the driver with the full liability coverage limits carried on his or her auto policy during the period of time when the driver is available for hire, and provides the driver with all other coverages applicable to his/her auto policy during all periods of TNC driving.
"Adapting and innovating to our customers' changing needs is critical," said company spokeswoman Angela Thorpe. "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."
TNCs in Colorado may provide high liability coverage limits while a paying passenger occupies the driver's vehicle or when the driver has been connected with a passenger and is on the way to pick that person up. But TNCs tend to provide a much lower limit of liability coverage when drivers are just available for hire and may not provide the drivers with any medical payments, comprehensive, or collision coverages at all. The TNCs may not be providing coverage for injuries to the driver or coverage for any damage to the driver's personal car.
Colorado customers who drive for a TNC should contact their local State Farm Agent to learn more about the new State Farm TNC Driver Coverage endorsement.
About State Farm®:
The mission of State Farm is to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams. State Farm and its affiliates are the largest providers of auto,home and individual life insurance in the United States. Its 18,000 agents and more than 65,000 employees serve more than 82 million policies and accounts – nearly 80 million auto, home, life, health and commercial policies, and nearly 2 million bank accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 41 on the 2015 Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com.
SOURCE State Farm