Uber Technologies Inc [UBER.UL] will utilize Progressive Insurance to offer coverage for drivers in Texas beginning on the day of Friday, in a pilot that could lead the ride-hailing market leader to diversify its U.S. insurance buying from its present sole provider, Uber and Progressive executives told Reuters.
Uber has been buying insurance to cover drivers for its primary ride-hailing services, like UberX, from James River Insurance Company, a unit of James River Group Holdings. In the United States, Uber claimed that it covers each ride with $1 million of liability coverage per incident and $1 million of wound coverage for underinsured or uninsured motorists, in addition to other coverage. Recent changes in Texas insurance principles made it more attractive for Progressive to provide a plan to cover Uber drivers there, Uber and Progressive stated. Progressive Corp this year launched "transportation network companies," or TNC insurance product, targeted at individuals who utilize their vehicles to carry passengers for ride-hailing services such as Uber or its rival Lyft.
John Barbagallo, Progressive Insurance’s Commercial Lines group president, said Progressive sees ride-sharing growing. "We are excited about the pilot," he informed the Reuters.
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