Next time you grab an Uber or Lyft, you can now get insurance for the ride. Ride-sharing passengers will now be able to purchase on-demand, per day accident and death coverage insurance via a new smartphone app.
The service is called RideSafe and was developed by startup Sure, Inc. Sure teamed up with insurer Chubb, one of the world’s biggest property-casualty insurers, to create the insurance product to cover customers for medical and other costs associated with accidents while using rideshare services.
Chubb will underwrite Sure’s ride-sharing policies, which will pay up to $10,000 in medical costs per accident and include a $100,000 death benefit, the firms said. RideSafe works by connecting a customer’s Uber or Lyft account to their Sure Insurance app, and once coverage is initially authorized, the passenger’s ride is automatically insured. The insurance costs $2.40 for a 24-hour period. RideSafe is available in 38 states.
Ride-sharing customers in the US are typically covered by the rideshare companies general liability insurance. According to Uber’s website, customers are covered for up to 1 million dollars of coverage per accident. The payout from Sures policies could help customers cover high deductibles and fill in any gaps liability insurance would not cover.
The product launch follows an announcement in December that Waymo LLC, the driverless-car unit of Google parent Alphabet Inc., has teamed with California technology startup Trov Inc. to cover future passengers for lost and damaged property and for injuries.
Chubb and other companies are riding the wave of popularity of ride-sharing services, as traditional auto insurance products look to be threatened by disruptive technologies like ridesharing and autonomous vehicles. Currently, US car insurance business for individuals is a $200million per year business.