GEICO announced Wednesday that it has launched an insurance policy in Virginia that covers drivers who work for Uber, Lyft and other ride-sharing services.The insurance company said the policy is now available to consumers through its website.
Othello Powell, director of GEICO commercial lines, said the insurance policy covers drivers when they are using their cars for personal use, and when they are driving for the ride-sharing companies.
"What we developed is a hassle-free product that covers both personal use and ridesharing use," Powell said in a statement. "The insurance applies whether or not the app is on and whether or not you have a passenger. The coverage is also not limited to just one transportation network company."
Prices for the insurance will vary based on the customer's vehicle type and driving history. A quote requested for a 2008 Honda Accord, with injury coverage of $100,000 per person and $300,000 per accident, would cost just more than $1,000 per year. The quote assumed a clean driving record, with no accidents or tickets in the past three years.
New regulations for Uber and Lyft easily cleared the General Assembly last week, and Gov. Terry McAuliffe has said he will sign the bills. Insurance rules were at the heart of negotiations between the Department of Motor Vehicles, insurers, ride-sharing companies and the taxicab industry.
Robert Bradshaw Jr., president of the Independent Insurance Agents of Virginia, said last week a driver's standard personal coverage won't apply when a driver is using the ride-sharing app but doesn't have a passenger, unless the driver has a stand-alone commercial auto policy or a personal auto policy, which includes ride-hailing services.
GEICO is the third-largest personal auto insurance carrier in Virginia, based on the volume of premiums written. According to State Corporation Commission data, GECO had 5 percent of the Virginia personal auto market in 2013. State Farm was the largest insurer, with almost 15 percent of the market.