Progressive introduces a new coverage for rideshare drivers in Florida! The new Progressive Rideshare Insurance “covers an individual driver who is logged into one or more transportation network company (TNC) app,” states Progressive. This is exciting news for drivers who use Uber or Lyft for example, the new Florida Personal Auto rate revision went into affect for new business as of May 11, 2018 and for renewing business coverage began June 14.
How does the Florida Personal Auto Rate Revision protect drivers?
Progressive’s standard Personal Auto policy excludes all TNC activity from the coverage. This means that Florida drivers who select Progressive’s new Rideshare Insurance will be eligible for Personal Auto coverage that will fill any gaps between coverages provided by their Personal Auto policy and their TNC policy while driving a covered vehicle.
What does the Rideshare Insurance include?
- Coverage for drivers logged into a TNC app, waiting to accept a trip request. In this situation a regular personal auto policy could have exclusions and the TNC may offer limited coverage. The customer must purchase liability limits of 50/100 or higher, because this is the minimum limit required by Florida law for TNC activity before accepting a trip request.
- Comprehensive, collision and roadside assistance coverages which are extended through all phases of TNC activity. These coverages fill the gaps between the TNC commercial coverage and the customer’s selected personal coverage limits. If the collision coverage provided by the TNC includes a deductible that’s higher than the customer’s deductible, the plan will pay the difference.
- Florida Rideshare Insurance does not cover transportation of goods; only passengers. Claims involving TNC delivery of goods will be excluded, the only way to possibly cover transportation goods would be with the TNC.
- Progressive does not provide PIP coverage while a driver is engaged in a prearranged ride; drivers should consult their TNC policy to understand if PIP/Medpay coverage is provided.
How does TNC differ from “business use”?
TNC activity is not considered “business use”; TNC vehicles should only select business use if driven for other purposes. Business use is when the vehicle is used to perform duties related specifically to the insured’s job. Common business-use occupations include:
- Professionals visiting multiple locations or transporting clients as a small part of his/her job
- Examples: Realtors, insurance agents, lawyers, doctors, accountants.
- Examples: Carpenter, construction worker, handyman/repairman, painter, plumber, landscaper.
- If tools/materials are being transported, they must weigh 500 lbs. or less and materials may not contain explosives, chemicals, or flammable materials & only one vehicle on policy can be used to transport tools/materials.
- A landscaper with a can of gas (5 gallons or less) or a nurse with an oxygen tank is acceptable.
- Sales/Service representatives