SEATTLE, Aug. 31, 2017 /PRNewswire/ -- Picture this: An enterprising Uber driver rolls through an intersection on her way to pick up a new passenger. But the trip goes south when an uninsured motorist clips the Uber driver's car and speeds off from the scene. Though the damage is minor, the driver is dismayed to discover that the claim isn't fully covered by her Uber policy, nor her personal auto insurance, and she faces steep out-of-pocket costs to repair the damage to her car.
As ridesharing services like Uber and Lyft have become increasingly common transportation modes for drivers and passengers alike, situations like these have become increasingly common, as well – often leaving rideshare drivers exposed to the risk of covering expensive costs when their insurance coverage falls short.
To offer greater protection, PEMCO Insurance now offers a new auto policy endorsement, which enhances personal auto policies for rideshare drivers, providing them additional coverage and lower deductibles.
Rideshare companies — known in the industry as transportation network companies (TNCs) — typically offer varying levels of limited coverage for their drivers, and many rideshare drivers without commercial auto insurance policies have driven with gaps in coverage, exposing them to risk in the event of an accident.
PEMCO's new rideshare endorsement gives drivers the green light to use their personal auto policy to fill coverage gaps and enhance their insurance coverage beyond the limits of their TNC policy. Until now, personal policies traditionally haven't covered commercial uses of a personal vehicle, which can put rideshare drivers in a precarious position with their insurer.
Additionally, PEMCO's endorsement aims to offer important protection where TNC coverage traditionally leaves drivers the most exposed – particularly against underinsured and uninsured motorists and within personal injury claims.
According to John Connally, a product development manager and resident rideshare expert at PEMCO, exact coverage amounts depend on the driver's personal auto policy limits, but the benefits offer significant value to policyholders.
"We've been listening to our customers as riders and drivers look to the sharing economy for both transportation and employment. Developing this endorsement is one example of the ways we're adapting to the marketplace and anticipating our customers' changing needs," Connally said.
The new rideshare endorsement is currently available to PEMCO policyholders in Washington, and is set to launch in Oregon on September 1. For more information, visit www.pemco.com/rideshare.
About PEMCO Insurance
PEMCO Insurance is a true Northwest company providing auto, home, and boat insurance to our neighbors since 1949. Consistently ranked highest in customer satisfaction, people are the heart of our business. They can depend on us to anticipate and support their changing needs. PEMCO is committed to serving organizations that positively impact our local communities. We were started by a Seattle schoolteacher and stay true to our roots by focusing on nonprofits and organizations that support youth, education, and public safety. To learn more, visit www.pemco.com.
Firmani + Associates Inc.
SOURCE PEMCO Insurance