Since the launch of Uber in 2011, the practice of ridesharing has had a significant impact on the auto insurance market, blurring the distinction between personal and commercial lines coverage. In fact, with multi-billion-dollar companies like Uber and Lyft operating in hundreds of cities across the country, and millions of users serviced by hundreds of thousands of drivers, the explosive growth of this on-demand service has created a new type of exposure—one that carriers and their agents need to address in order to meet the insurance needs of their customers.
“While two drivers may have the exact same profile based on traditional criteria—things like location, age, driving history, and so on—when you compare their actual driving behavior, different stories unfold about the type of risk the carrier is actually insuring.”-Cletus Nunes, Director of Sales.